00 Other assets 266,000 MYRNA, Loan 13,000 NORMA, Loan 20,000 MYRNA, capital 180,000 NORMA, capital 90,000 Total P 313,000 Total P 313,000 At this date, OLGA was admitted as a partner f
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
MYRNA and NORMA are partners sharing
Cash P 27,000 Accounts payable P 30,000
Other assets 266,000 MYRNA, Loan 13,000
NORMA, Loan 20,000 MYRNA, capital 180,000
NORMA, capital 90,000
Total P 313,000 Total P 313,000
At this date, OLGA was admitted as a partner for a consideration of P97,500 cash for a 40% interest in capital and in profits.
1. Assume OLGA is admitted by purchase of 40% each of the original partners’ interest, determine how the P97,500 will be apportioned to MYRNA and NORMA
*The answer is MYRNA, P65,700 and NORMA, P31,800. Please help with the solution.
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