On January 1, 200D, Bamby and Candy invited Dandy and Ely to join them in their business. On this date, their capital balances were P 80,000 for Bamby and P 20,000 for Candy. The profit and loss sharing ratio of Bamby and Candy is proportionate to their capital balances. Dandy bought 40% of the capital and earnings of Bamby for P 40,000. Ely invested P 90,000 for a 50% interest in the capital and earnings of the new partnership. The new capital was agreed at P 200,000. 4.11 REQUIRED: a. Entry to record the admission of the new partners. b. What is the new profit and loss sharing ratio?

On January 1, 200D, Bamby and Candy invited Dandy and Ely to join them in their business. On this date, their capital balances were P 80,000 for Bamby and P 20,000 for Candy. The profit and loss sharing ratio of Bamby and Candy is proportionate to their capital balances. Dandy bought 40% of the capital and earnings of Bamby for P 40,000. Ely invested P 90,000 for a 50% interest in the capital and earnings of the new partnership. The new capital was agreed at P 200,000. 4.11 REQUIRED: a. Entry to record the admission of the new partners. b. What is the new profit and loss sharing ratio?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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