11. Chen and Fran are partners sharing profits equally. Their respective capital balances are P2,000,000. And P1,000,000. They agree to admit Paula as a new partner. Prepare a table to revise partners’ equity and record her admission based on the following independent cases: a) Total agreed equity of P5,000,000. If there is no asset revaluation and no bonus, how much will she invest and for what percent of interest? b) She will be given a 50% interest and a bonus of P100,000 from the existing partners. How much is total agreed equity and how much will Paula invest? c) She will be given a 1/3 interest in an agreed total capital of P6,000,000. Assets should be revalued (upward adjustment) for P1,000,000. How much will Paula invest?
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.
11. Chen and Fran are partners sharing profits equally. Their respective capital balances are P2,000,000. And P1,000,000. They agree to admit Paula as a new partner.
Prepare a table to revise partners’ equity and record her admission based on the following independent cases:
a) Total agreed equity of P5,000,000. If there is no asset revaluation and no bonus, how much will she invest and for what percent of interest?
b) She will be given a 50% interest and a bonus of P100,000 from the existing partners. How much is total agreed equity and how much will Paula invest?
c) She will be given a 1/3 interest in an agreed total capital of P6,000,000. Assets should be revalued (upward adjustment) for P1,000,000. How much will Paula invest?
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