18. Partners AA, BB and CC divide profits and losses 5:3:2, respectively, and their capital balances on September 30, 2021 is as follows: AA, capital. BB, capital. CC, capital. P148,000 P260,000 P192,000 The assets and liabilities are recorded at approximate current fair values. DD is to be admitted as a new partner with a 20% interest in capital and earnings in exchange for a cash investment. How much cash should DD contribute? a. P120,000 O b. P144,000 c. P150,000 d. P160,000
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.
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