3. Mike and Mario agreed to form a partnership. Mike contributed equipment with carrying amount of P100,000 and fair value of P70,000, while Mario contributed cash of P200,000. The partners agreed to have a profit sharing ratio of 2:1, respectively. The initial credits to the partners' capital accounts shall reflect this fact. Under the bonus method, how much is the balance of the capital account of Mario immediately after the partnership formation?
3. Mike and Mario agreed to form a partnership. Mike contributed equipment with carrying amount of P100,000 and fair value of P70,000, while Mario contributed cash of P200,000. The partners agreed to have a profit sharing ratio of 2:1, respectively. The initial credits to the partners' capital accounts shall reflect this fact. Under the bonus method, how much is the balance of the capital account of Mario immediately after the partnership formation?
3. Mike and Mario agreed to form a partnership. Mike contributed equipment with carrying amount of P100,000 and fair value of P70,000, while Mario contributed cash of P200,000. The partners agreed to have a profit sharing ratio of 2:1, respectively. The initial credits to the partners' capital accounts shall reflect this fact. Under the bonus method, how much is the balance of the capital account of Mario immediately after the partnership formation?
Transcribed Image Text:3. Mike and Mario agreed to form a partnership. Mike
contributed equipment with carrying amount of P100,000 and
fair value of P70,000, while Mario contributed cash of
P200,000. The partners agreed to have a profit sharing ratio of
2:1, respectively. The initial credits to the partners' capital
accounts shall reflect this fact. Under the bonus method, how
much is the balance of the capital account of Mario
immediately after the partnership formation?
Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.
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