In the Crowe-Dagwood partnership, Crowe and Dagwood had a capital ratio of 3:1 and a profit and
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In the Crowe-Dagwood partnership, Crowe and Dagwood had a capital ratio of 3:1 and a profit and loss ratio of 2:1. They used the bonus method to record Elman’s admittance as a new partner. What ratio should be used to allocate to Crowe and Dagwood the excess of Elman’s contribution over the amount credited to Elman’s capital account?
a. Crowe and Dagwood’s new relative capital ratio.
b. Crowe and Dagwood’s new relative profit and loss ratio.
c. Crowe and Dagwood’s previous capital ratio.
d. Crowe and Dagwood’s previous profit and loss ratio.
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Related Book For
Advanced Financial Accounting
ISBN: 9781260165111
12th Edition
Authors: Theodore Christensen, David Cottrell, Cassy Budd
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