In the AD partnership, Allen's capital is P140,000 and Daniel's is P40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. What amount will David have to invest to give him one-fifth percent interest in the capital of the partnership if no goodwill or bonus is recorded?

In the AD partnership, Allen's capital is P140,000 and Daniel's is P40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. What amount will David have to invest to give him one-fifth percent interest in the capital of the partnership if no goodwill or bonus is recorded?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations

Section: Chapter Questions

Problem 44P

See similar textbooks

Related questions

Q: Cox, North, and Lee form a partnership. Cox contributes $201,000, North contributes $167,500, and…

A: Partnership is an agreement between two or more than two persons by which they agree for running…

Q: Matolcsy and Wells are partners. They share profits and losses equally. Their current capital…

A: The partnership comes into existence when two or more persons agree to do the business and share…

Q: P. L, and O are partners with capital balances of $50,000, $30,000 and $20,000 and who share in the…

A: In partnership firm, if any new partner contribute an amount in excess of their capital shares in…

Q: Choose the correct.The capital balance for Messalina is $210,000 and for Romulus is $140,000. These…

A: Total capital after new investment = $210,000 + $140,000 + $100,000…

Q: Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of…

A: Abby's capital account will be debited by $33,900 to record Sandra's admission to the…

Q: Cynthia Natividad and Domingo Ungria with capital balances of P340,000 and P360,000, respectively,…

A: Gain on Realization = 820000 - 340000 - 360000 = 120000 Profit sharing Ratio = 1:1

Q: Bobbi and Stuart are partners. The partnership capital of Bobbi is $40,800 and that of Stuart is…

A: A partner is said to be admitted in a firm when the existing partners decide to include a new person…

Q: TM and SJ, having capital balances of Php980,000 and Php525,000 respectively, decided to admit GD…

A: Admission of New Partner into Partnership Firm: a new partner can only be admitted to the firm with…

Q: Peters and Chong are partners and share equally in income or loss. Peters' current capital balance…

A: Capital account shall be credited by the proportionate amount of the total capital of the firm after…

Q: John and Paul are partners who share profits and losses in the ratio of 3:2 respectively. John’s…

A: Introduction: Partnership: Its an agreement between two or more partners for forming a business and…

Q: Philip and Morris are partners with capital 16,000 and P 8,000, respectively. They share profits in…

A: In the context of the given question, we need to compute the new profit sharing ratio after the…

Question

In the AD partnership, Allen's capital is
P140,000 and Daniel's is P40,000 and they
share income in a 3:1 ratio, respectively. They
decide to admit David to the partnership. What
amount will David have to invest to give him
one-fifth percent interest in the capital of the
partnership if no goodwill or bonus is recorded?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Given-

VIEW

Solution-

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

In the RST partnership, Ron's capital is P80,000, Stella's is P75,000, and Tiffany's is P50,000. They share income in a 3:2:1 ratio, respectively. Tiffany is retiring from the partnership. Tiffany is paid P56,000, and asset revaluation is recorded. What is the total amount of asset revaluation recorded?
not use ai please
K. Partners Prada, Paris and Paco have capital balances of P 90,000, P 70,000 and P 40,000 respectively and they share profits in the ratio of 3:3:4. Paco is no longer willing to contribute the amount of time and effort to the partnership. If Paris purchases Paco's interest for P 64,000, what is the balance of Paris' capital account after the withdrawal of Paco?
JM and PK, having capital balances of P2,940,000 and P1,575,000 respectively, decided to admit CY into their partnership. CY is to invest sufficient amounts in order to have a 25% interest in the partnership. If JM and PK share profit in a proportion of 3:1, respectively, and PK’s capital balance after CY’s investment was P1,769,250. How much was invested by CY? A. 2,546,250 B. 2,541,000 C. 3,522,750 D. 1,764,000
What is the answer to this question?
Myles Etter and Crystal Santori are partners who share in the income equally and have capital balances of $210,000 and $62,500, respectively. Etter, with the consent of Santori, sells one-third of his interest to Lonnie Davis. What entry is required by the partnership if the sales price is (a) $60,000? (b) $80,000?
Fiona and Gary are partners' with capital balances of P200,000 and P800,000 respectively. They agreed to accept Romy who will contribute cash P500,0000.00 Romy will be given a 25% interetst in the partnership. Use Bonus method, compute the following Fiona, Capital a b Gary, Capital Romy, Capital Romy will be given a 40% interetst in the partnership. Asset is to be revalued, compute the following Fiona, Capital Gary, Capital Romy, Capital
What amount should Yacapin be allowed to withdraw from the partnership?
please give me clear explanation thnx in advance
Please help me
Choose the correct.The capital balance for Messalina is $210,000 and for Romulus is $140,000. These two partners share profits and losses 60 percent (Messalina) and 40 percent (Romulus). Claudius invests $100,000 in cash in the partnership for a 20 percent ownership. The bonus method will be used. What are the capital balances for Messalina, Romulus, and Claudius after this investment is recorded?a. $216,000, $144,000, $90,000b. $218,000, $142,000, $88,000c. $222,000, $148,000, $80,000d. $240,000, $160,000, $100,000
A，B, C run a partnership. A does not work in the business. As a result, B receives an annual salary of 78000, C receives 39000. Alsom the partnership agrees to pay an interest of 10% of their capital balance. For any remaining profit after salary and interest, they will share based on their agreed fixed ratios. A: Capital of 45000, Profit and loss sharing:20% B: Capital of 50000, Profit and loss sharing:25% C: Capital of 50000, Profit and loss sharing :55% The profit for the year ended is 130000 The profit allocation by A is: