A, B, and C are partners in ABC Company with capital balances of P500,000, P300,000, and P200,000 respectively, sharing profits and losses in the ratio of 50%, 30%, and 20% respectively. D is admitted as a new partner bringing with him expertise and is to invest cash for 20% interest in the partnership which includes a credit of P100,000 bonus to him due to his special expertise upon his admission. How much cash should D contribute
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.
A, B, and C are partners in ABC Company with capital balances of P500,000, P300,000, and P200,000 respectively, sharing
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