A, B and C are partners with the following P/L ratio and capitalbalances: A (60%) P100,000; B (30%) P60,000; and C (10%) P20,000. | Case 7: The partnership is converted into a corporation. Thecorporation issues 6,000, 3,000 and 1,000 ordinary shares to A, Band C respectively. If the ordinary shares have par value of P10per share, how much is the resulting share premium?

Share premium represents the value of shares issued to the shareholders in excess of par value.

Answered: A, B and C are partners with the…

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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A, B and C are partners with the following P/L ratio and balances: A (60%) P100,000; B (30%) P60,000; and C (10%) P20.00 capital balances: A (60%) P100,000; B (30%) P60,000; and C (10%) P20,000. |