Question
A, B and C have capital balances of P112,000, P130,000 and P58,000, respectively, and share profits in the ratio 3:2:1. D invest cash in the
A, B and C have capital balances of P112,000, P130,000 and P58,000, respectively, and share profits in the ratio 3:2:1. D invest cash in the partnership for a one-fourth interest.
Required: 1. Assume D receives a one-fourth interest in the assets of the partnership, which includes credit for P25,000 of goodwill that is recognized upon admission. How much cash D invest?
2. Assume D receives a one-fourth interest in the assets of the partnership and D is credited with P20,000 of the bonus from the old partners that is recognized upon Ds admission. How much cash D invest? 3. Assume D receives a one-fourth interest in the assets of the partnership and B is credited with P15,000 of the bonus from D, how much cash D invest?
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Fundamental Accounting Principles
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
20th Edition
1259157148, 78110874, 9780077616212, 978-1259157141, 77616219, 978-0078110870
