Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Julian, Keno and Lapid are partners sharing profits in the ratio of 5:3:2, respectively. As of December 31, 2010, their capital balances were P95,000 for

Julian, Keno and Lapid are partners sharing profits in the ratio of 5:3:2, respectively. As of December 31, 2010, their capital balances were P95,000 for Julian, P80,000 for Keno and P60,000 for Lapid. On January 1, 2011, the partners admitted Manalo as a new partner and according to their agreement; Manalo will contribute P80,000 in cash to the partnership and also pay P10,000 for 15% of Keno's share. Manalo will be given a 20% share in profits, while the original partners' share will be proportionately the same as before. After the admission of Manalo, the total capital will be P330,000 and Manalo's capital will be P70,000.

1. What is the amount of asset revaluation?

A. P7,000

B. P15,000

C. P22,000

D. P37,000

2. What is the amount of bonus in the admission of Manalo?

A. P6,000

B. P11,000

C. P12,000

D. P22,000

3. What is the balance of Keno's capital, after the admission of Manalo?

A. P72,600

B. P74,600

C. P79,100

D. P81,100

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, G. Richard Chesley, Ray Carroll

6th Canadian Edition

0070915164, 9780070915169

More Books

Students also viewed these Accounting questions