The following information is presented for the partnership of Diona, Klee and Qiqi, who share profits and losses in the ratio of 4:3:3, respectively. Diona, Capital P260,000 Klee, Capital 180,000 Qiqi, Capital 160,000 Assume that the partnership decided to admit Yaoyao as a new partner with a one-fourth interest. Required: For each of the following independent cases, determine the amount that Yaoyao must contribute in cash or other assets: No goodwill or bonus will be recorded. A bonus of P24,000 is to be paid by Yaoyao to the prior partners. The partners agreed that the total resulting capital should be P820,000 and no goodwill should be recognized. Other assets are written down by P20,000 and a bonus of P40,000 is paid to Yaoyao at the time of admission.
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.
The following information is presented for the
Diona, Capital P260,000
Klee, Capital 180,000
Qiqi, Capital 160,000
Assume that the partnership decided to admit Yaoyao as a new partner with a one-fourth interest.
Required:
For each of the following independent cases, determine the amount that Yaoyao must contribute in cash or other assets:
- No
goodwill or bonus will be recorded. - A bonus of P24,000 is to be paid by Yaoyao to the prior partners.
- The partners agreed that the total resulting capital should be P820,000 and no goodwill should be recognized.
- Other assets are written down by P20,000 and a bonus of P40,000 is paid to Yaoyao at the time of admission.
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