MM, NN, and OO have a partnership. Their capital 'balances are P90,000, P130,000, and P170,000, respectively. They share profits and losses 30%, 30%, and 40%, respectively. PP wants to become a partner with a 25% share in partnership capital. Appraisal of the partnership reveals that the fair value of the partnership net assets (i.e. capital of MM, NN, and 00 after PP's admission) is P450,000. Calculate how much PP should be asked to contribute assuming then bonus method is to be used.
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.
MM, NN, and OO have a partnership. Their capital 'balances are P90,000, P130,000, and P170,000, respectively. They share
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