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VI-Comparison of Bonus and Revaluation/Goodwill Method-Admission by Mason and Norris are partners who have capitals of P 6,000 and P4,800 and who shire profits in

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VI-Comparison of Bonus and Revaluation/Goodwill Method-Admission by Mason and Norris are partners who have capitals of P 6,000 and P4,800 and who shire profits in the ratio of 3:2. Oster is admitted as a partner upon investing cash of P5,000, with profits to be shared equally Required: . Assume that Oster is allowed a 25% interest in the firm What entries would be made in recording the investment if the goodvill method s used? a. VOLUM E I I Advanced Financial Accounting-(A Comprehensive&Procecdural Approach 104 CHA PTER3 b. What entries would be made it the bonus method is used? Which will be preferred by Oster c. How much will Oster gain by the use of this method? Assume that Oster is allowed a 40% interest in the firm. a What entries would be made in recording the investment if the goodwill method s 2, used? What entries would be made if the bonus method is used? Which method will be preferred by Oster? How much will Oster gain by the use of ths method b. C. VI-Comparison of Bonus and Revaluation/Goodwill Method-Admission by Mason and Norris are partners who have capitals of P 6,000 and P4,800 and who shire profits in the ratio of 3:2. Oster is admitted as a partner upon investing cash of P5,000, with profits to be shared equally Required: . Assume that Oster is allowed a 25% interest in the firm What entries would be made in recording the investment if the goodvill method s used? a. VOLUM E I I Advanced Financial Accounting-(A Comprehensive&Procecdural Approach 104 CHA PTER3 b. What entries would be made it the bonus method is used? Which will be preferred by Oster c. How much will Oster gain by the use of this method? Assume that Oster is allowed a 40% interest in the firm. a What entries would be made in recording the investment if the goodwill method s 2, used? What entries would be made if the bonus method is used? Which method will be preferred by Oster? How much will Oster gain by the use of ths method b. C

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