9. In the AA-BB partnership, AA and BB had a capital ratio of 3:1 and a profit and loss ratio of 2:1, respectively. The bonus method was used to record CC's admittance as a new partner. What ratio would be used to allocate, to AA and BB, the excess of CC's contribution over the amount credited to CC's capital account? *
9. In the AA-BB partnership, AA and BB had a capital ratio of 3:1 and a profit and loss ratio of 2:1, respectively. The bonus method was used to record CC's admittance as a new partner. What ratio would be used to allocate, to AA and BB, the excess of CC's contribution over the amount credited to CC's capital account? *
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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Transcribed Image Text:9. In the AA-BB partnership, AA and BB 1
had a capital ratio of 3:1 and a profit
and loss ratio of 2:1, respectively. The
bonus method was used to record CC's
admittance as a new partner. What
ratio would be used to allocate, to AA
and BB, the excess of CC's contribution
over the amount credited to CC's
capital account? *
a. AA and BB's new relative ratio
b. AA and BB's new relative profit and loss
ratio
O c. AA and BB's old capital ratio
O d. AA and BB's old profit and loss ratio
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