The capital accounts of the partnership of Bato, Bong and Bongbong on June 1, 2005 are presented below with their respective profit and loss ratios: Bato P139,200 1/2 Bong Bongbong 208,800 1/3 96.000 1/6 P4.00 On June 1, 2005, Pacman is admitted to the partnership when he purchased, for P132,000, a proportionate interest from Bato and Bong in the net assets and profits of the partnership. As a result of a transaction, Pacman acquired a one-fifth interest in the net assets and profits of the firm. Assuming that implied goodwill is not to be recorded, what is the combined gain realized by Bato and Bong upon the sale of a portion of their interest in the partnership to Pacman?
The capital accounts of the partnership of Bato, Bong and Bongbong on June 1, 2005 are presented below with their respective profit and loss ratios: Bato P139,200 1/2 Bong Bongbong 208,800 1/3 96.000 1/6 P4.00 On June 1, 2005, Pacman is admitted to the partnership when he purchased, for P132,000, a proportionate interest from Bato and Bong in the net assets and profits of the partnership. As a result of a transaction, Pacman acquired a one-fifth interest in the net assets and profits of the firm. Assuming that implied goodwill is not to be recorded, what is the combined gain realized by Bato and Bong upon the sale of a portion of their interest in the partnership to Pacman?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The capital accounts of the partnership of Bato, Bong, and Bongbong on June 1, 2005 are presented
below with their respective profit and loss ratios:
Bato
P139,200
1/2
Bong
208,800
1/3
96.000
P444.000
Bongbong
1/6
On June 1, 2005, Pacman is admitted to the partnership when he purchased, for P132,000, a
proportionate interest from Bato and Bong in the net assets and profits of the partnership. As a result
of a transaction, Pacman acquired a one-fifth interest in the net assets and profits of the firm.
Assuming that implied goodwill is not to be recorded, what is the combined gain realized by Bato
and Bong upon the sale of a portion of their interest in the partnership to Pacman?
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