Jim and Joe are partners agreeing to share profits and losses in a 2:6 ratio, respectively. Business has been profitable and they have decided to admit Jewel to the partnership for a cash investment. The balances in Jim and Joe's capital accounts are presently P240,000 and P260,000, respectively. If Jewel is given a 20% interest in the partnership in exchange for P90,000 cash, the entry to record her investment includes a: a. credit to Jim, capital for P7,000 b. credit to cash for P90,000 c. credit to Jewel, capital for P90,000 d. credit to Jewel, capital for P118,000

Jim and Joe are partners agreeing to share profits and losses in a 2:6 ratio, respectively. Business has been profitable and they have decided to admit Jewel to the partnership for a cash investment. The balances in Jim and Joe's capital accounts are presently P240,000 and P260,000, respectively. If Jewel is given a 20% interest in the partnership in exchange for P90,000 cash, the entry to record her investment includes a: a. credit to Jim, capital for P7,000 b. credit to cash for P90,000 c. credit to Jewel, capital for P90,000 d. credit to Jewel, capital for P118,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...

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