Cash P 180,000 Accounts, payable P 420,000 Other assets 1,660,000 Bi, Loan 60,000 Jo, receivable 40,000 Jo, Capital 620,000 Li, Capital 400,000 __ Bi, Capital 380,000 Total P 1,880,000 Total P1,880,000 Assume that the assets and liabilities are fairly valued on the balance Sheet and the partnership decides to admit Mac as a new partner, with a 20% interest. No goodwill or bonus is to be recorded. How much Mac should contribute in cash or other assets? a. P 350,000 b. P 280,000
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
- The following is the condensed
balance sheet of thepartnership Jo, Li and Bi who shareprofits and losses in the ratio of 4:3:3.
Cash P 180,000 Accounts, payable P 420,000
Other assets 1,660,000 Bi, Loan 60,000
Jo, receivable 40,000 Jo, Capital 620,000
Li, Capital 400,000
__ Bi, Capital 380,000
Total P 1,880,000 Total P1,880,000
Assume that the assets and liabilities are fairly valued on the balance Sheet and the partnership decides to admit Mac as a new partner, with a 20% interest. No
a. P 350,000
b. P 280,000
c .P 355,000
d. P 284,000
please help me understand my activity and I hope you include the computations so that I can understand
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