Question
1. The capital account for the partnership of A and B at March 31, 2020 are as follows: A, Capital - 80,000 B, Capital -
1.
The capital account for the partnership of A and B at March 31, 2020 are as follows:
A, Capital - 80,000 B, Capital - 40,000
The partners share profits and losses in the ratio of 3:2 respectively.
The partnership decided to admit C as a partner with 1/3 interest in the capital and profits and losses upon his contribution of P30,000. Immediately after C's admission, what should be the capital balances of A, B, and C respectively, assuming bonus is to be recognized?
2.
A, B and C partnership shows the following profit and loss ratios and capital balances:
| A | 60% | 252,000 |
| B | 30% | 126,000 |
| C | 10% | 42,000 |
The partners decide to sell D 20% of their respective capital and profit and loss interests for a total payment of 90,000. D will pay directly to the partners. If the partners agreed to revalue the assets prior to the admission of D, what are the capital balances of the partners after his admission?
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Managerial Accounting Information For Decisions
Authors: Thomas L. Albright , Robert W. Ingram, John S. Hill
4th Edition
0324222432, 978-0324222432
