In the Quirino-Aquino Partnership, Quirino and Aquino had a capital ratio of 3:1 and a profit and loss ratio of 2:1, respectively. The bonus method was used to record Martial’s admittance as a new, partner. What ratio should be used to allocate, to Quirino and Aquino, the excess of Martial’s contribution over the amount credited to Martial’s capital account? Quirino and Aquino’s new relative profit and loss ratio. Quirino and Aquino’s old capital ratio. Quirino and Aquino’s new relative capital ratio. Quirino and Aquino’s old profit and loss ratio.
In the Quirino-Aquino Partnership, Quirino and Aquino had a capital ratio of 3:1 and a profit and loss ratio of 2:1, respectively. The bonus method was used to record Martial’s admittance as a new, partner. What ratio should be used to allocate, to Quirino and Aquino, the excess of Martial’s contribution over the amount credited to Martial’s capital account? Quirino and Aquino’s new relative profit and loss ratio. Quirino and Aquino’s old capital ratio. Quirino and Aquino’s new relative capital ratio. Quirino and Aquino’s old profit and loss ratio.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In the Quirino-Aquino Partnership , Quirino and Aquino had a capital ratio of 3:1 and a profit and loss ratio of 2:1, respectively. The bonus method was used to record Martial’s admittance as a new, partner. What ratio should be used to allocate, to Quirino and Aquino, the excess of Martial’s contribution over the amount credited to Martial’s capital account?
Quirino and Aquino’s new relative profit and loss ratio.
Quirino and Aquino’s old capital ratio.
Quirino and Aquino’s new relative capital ratio.
Quirino and Aquino’s old profit and loss ratio.
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