Peter, James, and John are partners with capital investments of P450,000, P350,000 and P500,000 respectively. Upon the formation of the business, the three agreed to share profits and losses in the ratio of 4:3:3. Andrew was admitted into the partnership by investing cash of P488,000 for a 30% interest in the partnership. How much is the bonus given by James to Andrew? Note: Round of answer to the nearest peso.

Peter, James, and John are partners with capital investments of P450,000, P350,000 and P500,000 respectively. Upon the formation of the business, the three agreed to share profits and losses in the ratio of 4:3:3. Andrew was admitted into the partnership by investing cash of P488,000 for a 30% interest in the partnership. How much is the bonus given by James to Andrew? Note: Round of answer to the nearest peso.

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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