Cjoins the partnership of A and B. The partnership's statement of financial position before C's admission...

 

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Cjoins the partnership of A and B. The partnership's statement of financial position before C's admission is as follows: Cash Accounts Receivable Inventory Equipment Total Assets P 30,000 140,000 200,000 500,000 P 870,000 Accounts Payable A, capital (60%) B, capital (40%) P 80,000 515,000 275,000 Total L and E P 870,000 The following adjusments are determined: a. The recoverable amount of the accounts receivable is P120,000. b. The inventory has a net realizable value of P160,000. c. The equipment has a fair value of P450,000. d. Unrecorded liability amount to P20,000. Case #1: C aquired half of B's capital interest for P800,000 Case #2: C purchases 20% of A's and B's capital interest for P800,000. Case #3: C wants to invest for a 20% in the net assets and profits of the partnership. Determine the amount to be invested if no bonus is allowed. Case #4: C invest P100,000 for a 20% interest in the net assets and profits of the partnership. Use the bonus method. Case #5: C invest P180,000 for a 20% interest in the net assets and profits of the partnership. Use the bonus method. Cjoins the partnership of A and B. The partnership's statement of financial position before C's admission is as follows: Cash Accounts Receivable Inventory Equipment Total Assets P 30,000 140,000 200,000 500,000 P 870,000 Accounts Payable A, capital (60%) B, capital (40%) P 80,000 515,000 275,000 Total L and E P 870,000 The following adjusments are determined: a. The recoverable amount of the accounts receivable is P120,000. b. The inventory has a net realizable value of P160,000. c. The equipment has a fair value of P450,000. d. Unrecorded liability amount to P20,000. Case #1: C aquired half of B's capital interest for P800,000 Case #2: C purchases 20% of A's and B's capital interest for P800,000. Case #3: C wants to invest for a 20% in the net assets and profits of the partnership. Determine the amount to be invested if no bonus is allowed. Case #4: C invest P100,000 for a 20% interest in the net assets and profits of the partnership. Use the bonus method. Case #5: C invest P180,000 for a 20% interest in the net assets and profits of the partnership. Use the bonus method.

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