Calvin and Klein are partners sharing profits 60% and 40%. On January 1, they decided to admit Versace as a new partner upon his investment of P 8,000. On this date, their interest in the partnership are as follows: Calvin-P 11,500; Klein-P 9,300. assuming that the new partner is given a one-third interest in the firm, with bonus allowed to the new partner, how much is the new capital balance of Calvin?

Calvin and Klein are partners sharing profits 60% and 40%. On January 1, they decided to admit Versace as a new partner upon his investment of P 8,000. On this date, their interest in the partnership are as follows: Calvin-P 11,500; Klein-P 9,300. assuming that the new partner is given a one-third interest in the firm, with bonus allowed to the new partner, how much is the new capital balance of Calvin?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 2PA: Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances...

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Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances prior to Tammys admission are $50,000 each. Prepare a schedule showing how the bonus should be divided among the three, assuming the profit or loss agreement will be 1:3 once Tammy has been admitted and her contribution is: A. $20,000 B. $80,000 C. $50,000. In addition, show the resulting journal entries to each of the three partners capital accounts.
Ragasa and Mendoza are partners sharing profits in the ratio of 3:2 respectively.On January 1,Ragasa and Mendoza decided to admit Gangoso as a new partner upon her investment of 8,000.Onthis date their interests in the partnership are as follows: Ragasa 11,500, Mendoza, 9,300. Assumingthat the new partner is given 1/3 interest in the firm,with bonus being allowed to the new partner, thenew capital balances of Ragasa, Mendoza and Gangoso respectively would be A. 10,540; 8,660 and 9,600B. 11,500; 9,300 and 8,000C. 11,520; 7,680 and 9,600D. 12,480; 8,320 and 8,000
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How much was the bonus debited or credited in partner Bruce's capital account? * Bruce, Parker and May formed a partnership. Their capital balances showed the following: Bruce, Capital- P252,000; Parker, Capital- P126,000; May, Capital- P42,000. Their profit and loss ratio are 6:3:1. The partners decide to sell 20 percent of their interest to Violet for a total payment of P120,000. Violet will pay the money directly to the other partners.
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