ABC Partnership decided to admit Dan who invested P100,000 for a 20% interest in a partnership with a total capitalization of P600,000. The accountant O Debits cash and credits Dan, capital for P120,000 O Recognizes a bonus for Dan O Debits Cash and credits Dan, capital for P100,000 O Recognizes a bonus for the old partners

ABC Partnership decided to admit Dan who invested P100,000 for a 20% interest in a partnership with a total capitalization of P600,000. The accountant O Debits cash and credits Dan, capital for P120,000 O Recognizes a bonus for Dan O Debits Cash and credits Dan, capital for P100,000 O Recognizes a bonus for the old partners

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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Question

ABC Partnership decided to admit Dan who invested P100,000 for a 20% interest in a
partnership with a total capitalization of P600,000. The accountant
O Debits cash and credits Dan, capital for P120,000
Recognizes a bonus for Dan
Debits Cash and credits Dan, capital for P100,000
Recognizes a bonus for the old partners

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