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Bonus Method
An accounting method used in partnership accounting to reallocate partners' equity accounts when a new partner is admitted without changing the recorded values of the actual assets.
Balance Sheet
A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.
Capital Balances
The amounts recorded in the capital accounts of partners or owners reflecting their stakes or investments in the business.
Goodwill
An intangible asset that arises when a company acquires another for a price higher than the fair value of its net identifiable assets.
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