Cis admitted to A & B Partnership under the bonus method. C contributes cash of P20,000 and non-cash assets with a market value of P30,000 and book value of P15,000 in exchange for a 20% ownership interest in the new partnership. Prior to the admission of C, the capital of the existing partnership was P130,000 and an appraisal showed the partnership net assets were fairly stated. A & B shared profits and losses at a ratio of 80/20, respectively. How much is the bonus amount to be recorded for each partner?

Cis admitted to A & B Partnership under the bonus method. C contributes cash of P20,000 and non-cash assets with a market value of P30,000 and book value of P15,000 in exchange for a 20% ownership interest in the new partnership. Prior to the admission of C, the capital of the existing partnership was P130,000 and an appraisal showed the partnership net assets were fairly stated. A & B shared profits and losses at a ratio of 80/20, respectively. How much is the bonus amount to be recorded for each partner?

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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