A, B and C are partners with capital balances and profit and loss ratios of P50,000 (30%), P70,000 (20%) and P79,500 (50%), each respectively. The partnership owes C P20,000, while B owes the partnership P10,000. D is admitted into the partnership by purchasing 1/2 of the capital of A and B for P70,000 and investing P30,000 for a 40% interest in the partnership. The partners agree that there should be asset revaluation. After D’s admission, total partnership capital will be P275,000. How much is the capital of C after D’s admission? How much is the bonus of C from D after D’s admission? How much is the capital of A after D’s admission?
A, B and C are partners with capital balances and profit and loss ratios of P50,000 (30%), P70,000 (20%) and P79,500 (50%), each respectively. The partnership owes C P20,000, while B owes the partnership P10,000. D is admitted into the partnership by purchasing 1/2 of the capital of A and B for P70,000 and investing P30,000 for a 40% interest in the partnership. The partners agree that there should be asset revaluation. After D’s admission, total partnership capital will be P275,000. How much is the capital of C after D’s admission? How much is the bonus of C from D after D’s admission? How much is the capital of A after D’s admission?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A, B and C are partners with capital balances and
How much is the capital of C after D’s admission?
How much is the bonus of C from D after D’s admission?
How much is the capital of A after D’s admission?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education