Tom and Jerry Tom and Jerry are partners who share profits and losses in a ratio of 2:3, respectively, and have the following capital balances on Sept. 30, 2021. Tom, Capital, P 100,000 credit and Jerry, Capital, P 150,000 credit. The partners agreed to admit Ben to the partnership. Required: Calculate the capital balances of each partner after the admission of Ben, assuming that the bonuses are recorded for each of the following assumptions: a) Ben paid Tom P50,000 for 40% of his interest. b) Ben invested P 50,000 for a one-sixth interest in the partnership. c) Ben invested P 50,000 for 25% interest in the partnership. d) Ben invested P 50,000 for 15% interest in the partnership.

Tom and Jerry Tom and Jerry are partners who share profits and losses in a ratio of 2:3, respectively, and have the following capital balances on Sept. 30, 2021. Tom, Capital, P 100,000 credit and Jerry, Capital, P 150,000 credit. The partners agreed to admit Ben to the partnership. Required: Calculate the capital balances of each partner after the admission of Ben, assuming that the bonuses are recorded for each of the following assumptions: a) Ben paid Tom P50,000 for 40% of his interest. b) Ben invested P 50,000 for a one-sixth interest in the partnership. c) Ben invested P 50,000 for 25% interest in the partnership. d) Ben invested P 50,000 for 15% interest in the partnership.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 2PA: Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances...

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