A, B, and C with profit and loss sharing ratio of 4:3:3, respectively, have the following condensed
Question:
A, B, and C with profit and loss sharing ratio of 4:3:3, respectively, have the following condensed statement of financial position:
Assets | 1,880,000 | Liabilities | 480,000 |
A Capital | 620,000 | ||
B, Capital | 400,000 | ||
C, Capital | 380,000 | ||
Total | 1,880,000 | 1,880,00 |
D will be admitted as a new partner with a 20% interest after he pays the three partners a premium of 10%. Under the book value method, D’s capital credit will be
- 200,000
- 280,000
- 350,000
- 376,000
2. D will be admitted as a new partner with a 20% interest after he pays the three partners a premium of 10%. Under the book value method, D’s capital credit will be
- 200,000
- 280,000
- 350,000
- 376,000
The admission of a new partner to a 20% interest in a partnership for an investment of P18,000, but with a capital credit based on P100,000 total contributed capital, will result in,?
- bonus to the new partner of 2,000
-bonus to the new partner of 5,600
- bonus to old partner for 2,000
- bonus to old partner for 5,600
Note 1: please show me a detailed solution and explanation.
Expert Answer:
Answer 1 376000 option D Calculation Book value of partnership 1880000 New partner interest 20 Ca... View the full answer
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
