Question: 1. C is admitted to A & B Partnership under the bonus method. C contributes cash of P20,000 and non-cash assets with a market value

1. C is admitted to A & B Partnership under the bonus method. C contributes cash of P20,000 and non-cash assets with a market value of P30,000 and book value of P15,000 in exchange for a 20% ownership interest in the new partnership. Prior to the admission of C, the capital of the existing partnership was P130,000 and an appraisal showed the partnership net assets were fairly stated. A & B shared profits and losses at a ratio of 80/20, respectively.

Requirement : How much is the bonus amount to be recorded for each partner?

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