Partners Francia, Glenda and Harold share profits and losses at 5:3:2, respectively, and their balance sheet on October 31, 2020 follows: Cash Other assets P 160,000 1,440,000 How much cash should Ivan contribute? P1,600,000 Accounts payable Francia, Capital Glenda, Capital Harold, Capital P 400,000 296,000 520,000 384,000 P1,600,000 The assets and liabilities are recorded at their current fair value. Ivan is to be admitted as a new partner with a 25% interest in capital and earnings. Harold was credited a bonus of P9,000.
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.
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