Bruce, Parker, and May formed a partnership. Their capital balances showed the following: Bruce, Capital – P252,000; Parker, Capital – P126,000; May, Capital – P42,000. Their profit and loss ratio are 6:3:1. The partners decide to sell 20 percent of their interest to Violet for a total payment of P120,000. Violet will pay the money directly to the other partners. How much was the bonus debited or credited in partner Bruce’s capital account? Please provide a good accounting form in the solution
Bruce, Parker, and May formed a partnership. Their capital balances showed the following: Bruce, Capital – P252,000; Parker, Capital – P126,000; May, Capital – P42,000. Their profit and loss ratio are 6:3:1. The partners decide to sell 20 percent of their interest to Violet for a total payment of P120,000. Violet will pay the money directly to the other partners. How much was the bonus debited or credited in partner Bruce’s capital account? Please provide a good accounting form in the solution
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
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- Bruce, Parker, and May formed a partnership. Their capital balances showed the following: Bruce, Capital – P252,000; Parker, Capital – P126,000; May, Capital – P42,000. Their
profit and loss ratio are 6:3:1. The partners decide to sell 20 percent of their interest to Violet for a total payment of P120,000. Violet will pay the money directly to the other partners. How much was the bonus debited or credited in partner Bruce’s capital account?
Please provide a good accounting form in the solution
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