J, H, and N are partners with present capital balances of P40,000 , P50,000 andP20,000 respectively. The partners share profits and losses according 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 the partnership in exchange for a 35% interest in capital and a 20% interest in profits and losses. An appraisal of the existing partnerships' assets reveals the following: Accounts Receivable 20,000 overvalued; Inventory 10,000 overvalued; Land 10,000 undervalued; Building 15,000 undervalued. What is the capital balance of H in the new partnership assuming bonus method? *
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.
J, H, and N are partners with present capital balances of P40,000 , P50,000 andP20,000 respectively. The partners share
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