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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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