Aaron and Jireh share profits in the ratio of 2:3. Their capital contributions are: P150,000 to Aaron and P250,000 to Jireh. Give the journal entries to record the admission of BJ under each of the following assumptions: a. BJ purchases 1/3 interest of Aaron for P50,000. b. Jireh sells ½ of her interest to BJ for P140,000. c. BJ invests P120,000 for a ¼ interest in the firm. Partners agreed that the new capitalization is P480,000.
Aaron and Jireh share profits in the ratio of 2:3. Their capital contributions are: P150,000 to Aaron and P250,000 to Jireh. Give the journal entries to record the admission of BJ under each of the following assumptions: a. BJ purchases 1/3 interest of Aaron for P50,000. b. Jireh sells ½ of her interest to BJ for P140,000. c. BJ invests P120,000 for a ¼ interest in the firm. Partners agreed that the new capitalization is P480,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Aaron and Jireh share profits in the ratio of 2:3. Their capital contributions are: P150,000 to Aaron and P250,000 to Jireh.
Give the
a. BJ purchases 1/3 interest of Aaron for P50,000.
b. Jireh sells ½ of her interest to BJ for P140,000.
c. BJ invests P120,000 for a ¼ interest in the firm. Partners agreed that the new capitalization is P480,000.
d. BJ invests 90,000 for a 1/5 interest in a new capitalization of P500,000.
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