Either good accountinf form or not. The following are the capital account balances and profit and loss ratios of the partners in AB Partnership asof July 1, 2020:Capital accounts200,000400.000600,000Profit & loss ratios40%60%A, CapitalB, CapitalOn July 1, 2020, C was admitted to the partnership when he acquired 20% interest in the net assets andprofits of the firm for a P120,000 investment. The net assets of the firm as of this date approximate their fairvalues. How much is the capital balance of A after the admission of C if C's admission was accounted forusing the bonus method?

Bonus Method: Under this method, the Capital balance of the Incoming Partner shall be calculated as…

Answered: values. How much is the capital balance…

values. How much is the capital balance of A after the admission of C if C's admission was accounted for using the bonus method?

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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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Either good accountinf form or not.

The following are the capital account balances and profit and loss ratios of the partners in AB Partnership as
of July 1, 2020:
Capital accounts
200,000
400.000
600,000
Profit & loss ratios
40%
60%
A, Capital
B, Capital
On July 1, 2020, C was admitted to the partnership when he acquired 20% interest in the net assets and
profits of the firm for a P120,000 investment. The net assets of the firm as of this date approximate their fair
values. How much is the capital balance of A after the admission of C if C's admission was accounted for
using the bonus method?

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