J, H, and N are partners with present capital balances of P40,000 ,P50,000 andP20,000 respectively. The partners share profits and lossesaccording to the following percentages: 50% for A, 20% for B, and 30%for C. D is to join the partnership upon contributing P55,OOO to thepartnership in exchange for a 35% interest in capital and a 20% interest inprofits and losses. An appraisal of the existing partnerships' assets revealsthe following: Accounts Receivable 20,000 overvalued; Inventory 10,000overvalued; Land 10,000 undervalued; Building 15,000 undervalued. Whatis the capital balance of H in the new partnership assuming bonusmethod?
J, H, and N are partners with present capital balances of P40,000 ,P50,000 andP20,000 respectively. The partners share profits and lossesaccording to the following percentages: 50% for A, 20% for B, and 30%for C. D is to join the partnership upon contributing P55,OOO to thepartnership in exchange for a 35% interest in capital and a 20% interest inprofits and losses. An appraisal of the existing partnerships' assets revealsthe following: Accounts Receivable 20,000 overvalued; Inventory 10,000overvalued; Land 10,000 undervalued; Building 15,000 undervalued. Whatis the capital balance of H in the new partnership assuming bonusmethod?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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J, H, and N are partners with present capital balances of P40,000 ,P50,000 andP20,000 respectively. The partners share profits and lossesaccording to the following percentages: 50% for A, 20% for B, and 30%for C. D is to join the partnership upon contributing P55,OOO to thepartnership in exchange for a 35% interest in capital and a 20% interest inprofits and losses. An appraisal of the existing partnerships' assets revealsthe following: Accounts Receivable 20,000 overvalued; Inventory 10,000overvalued; Land 10,000 undervalued; Building 15,000 undervalued. Whatis the capital balance of H in the new partnership assuming bonusmethod?
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