4. Abel and Carr formed a partnership and agreed to divide initial capital equally, even though Abel contributed P100,000 and Carr contributed P54,000 in identifiable assets. Under the bonus approach to adjust the capital accounts, Carr's unidentifiable asset should be debited for
4. Abel and Carr formed a partnership and agreed to divide initial capital equally, even though Abel contributed P100,000 and Carr contributed P54,000 in identifiable assets. Under the bonus approach to adjust the capital accounts, Carr's unidentifiable asset should be debited for
4. Abel and Carr formed a partnership and agreed to divide initial capital equally, even though Abel contributed P100,000 and Carr contributed P54,000 in identifiable assets. Under the bonus approach to adjust the capital accounts, Carr's unidentifiable asset should be debited for
Transcribed Image Text:4. Abel and Carr formed a partnership and agreed to divide
initial capital equally, even though Abel contributed P100,000
and Carr contributed P84,000 in identifiable assets. Under the
bonus approach to adjust the capital accounts, Carr's
unidentifiable asset should be debited for
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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