Coral, Camus and Cerda are partners sharing profits in the ratio of 5:3:2, respectively. As of December 31, 2008, their capital balances were P190,000, for Coral, P160,000 for Camus, P120,000 for Ceda. On January 1, 2009, the partners admitted Cordero as new partner and according to their agreement, Cordero will contribute P160,000 in cash to the partnership and also pay P20,000 for 15% of Camu’s share. Cordero will be given a 20% share in profits while the original partners’ share will be proportionately the same as before. After the admission of Cordero, the total capital will be P660,000 and Cordero’s capital be P140,000. 1. The amount of the asset revaluation upon the admission of Cordero is 2. The bonus, if any, upon admission of Cordero is 3. The capital of Camus after the admission of Cordero is 4. The partners’ profit and ratio after the admission of Cordero shall be
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Coral, Camus and Cerda are partners sharing profits in the ratio of 5:3:2, respectively. As of December 31, 2008, their capital balances were P190,000, for Coral, P160,000 for Camus, P120,000 for Ceda.
On January 1, 2009, the partners admitted Cordero as new partner and according to their agreement, Cordero will contribute P160,000 in cash to the
1. The amount of the asset revaluation upon the admission of Cordero is
2. The bonus, if any, upon admission of Cordero is
3. The capital of Camus after the admission of Cordero is
4. The partners’ profit and ratio after the admission of Cordero shall be
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
