AA and BB are parthers who have capital of P600,000 and P480,000 sharing profits in the ratio of 3:2. CC admitted as a partner upon investing P500,000 for 25% interest in the firm, prfoits to be shared equally. Given the choice between goodwill and bonus method, CC will O A. Prefer bonus method due to CC's gain of P35,000. O B. Prefer bonus method due to CC's gain of P140,000. O C. Prefer goodwill method due to CC's gain of p1 40,000. D. Be indifferent for the goodwill and bonus methods are the same. < Previous Finish now
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.
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