At April 30, partnership capital of EASCY ANG BM 99.s Company are Mr. Easy P 52,000, Mr. Ang, P 48,000 and Mr. BM 99.2 P 18,000. The income sharing ratios are 5:4:1, respectively. On May 1, the EASY ANG BM 99.2 Company is formed by admitting Mr. PAPASA AKO to the firm as a partner. Instructions a. Journalize the admission of Mr. PAPASA AKO under each of the following independent assumptions. 1, Mr. PAPASA AKO purchase 50% of Mr. BM 99.2's ownership interest by paying him P 16,000
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.
Step by step
Solved in 3 steps with 4 images
