a. Record the admission of Philipp in the FC Law Office partnership. b. Compute for the agreed capital for each of the partners. C. Compute the new profit and loss ratio of Francis and Charles.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Exercise 4-6. Admission of a Partner by Investment with Bonus to Old Partners
Francis and Charles are partners in FC Law Office sharing profits in the ratio of 2:1 with capital
balances of P800,000 and P400,000 respectively. They agree to admit Philipp in the partnership.
Philipp invested P500,000 and was given a 4 interest.
Required:
a. Record the admission of Philipp in the FC Law Office partnership.
b. Compute for the agreed capital for each of the partners.
C. Compute the new profit and loss ratio of Francis and Charles.
Transcribed Image Text:Exercise 4-6. Admission of a Partner by Investment with Bonus to Old Partners Francis and Charles are partners in FC Law Office sharing profits in the ratio of 2:1 with capital balances of P800,000 and P400,000 respectively. They agree to admit Philipp in the partnership. Philipp invested P500,000 and was given a 4 interest. Required: a. Record the admission of Philipp in the FC Law Office partnership. b. Compute for the agreed capital for each of the partners. C. Compute the new profit and loss ratio of Francis and Charles.
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