Donna, Rick, and Daisy are partners sharing profits in a 3:3:4 ratio, respectively. They have been overwhelmed by the amount of work recently and have agreed to admit Bud to the partnership for a cash investment. The current balances in their capital accounts are P60,000, P80,000, and P120,000, respectively. Assuming Bud is given a 12.5% interest in the partnership for a P60,000 cash investment, the entry to record his investment includes a: a. credit to Bud, capital for P40,000 b. debit to Donna, capital for P6,000 c. credit to Rick, capital for P8,000 d. credit to Bud, capital for P60,000
Donna, Rick, and Daisy are partners sharing profits in a 3:3:4 ratio, respectively. They have been overwhelmed by the amount of work recently and have agreed to admit Bud to the partnership for a cash investment. The current balances in their capital accounts are P60,000, P80,000, and P120,000, respectively. Assuming Bud is given a 12.5% interest in the partnership for a P60,000 cash investment, the entry to record his investment includes a: a. credit to Bud, capital for P40,000 b. debit to Donna, capital for P6,000 c. credit to Rick, capital for P8,000 d. credit to Bud, capital for P60,000
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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Donna, Rick, and Daisy are partners sharing profits in a 3:3:4 ratio, respectively. They have been overwhelmed by the amount of work recently and have agreed to admit Bud to the partnership for a cash investment. The current balances in their capital accounts are P60,000, P80,000, and P120,000, respectively.
Assuming Bud is given a 12.5% interest in the partnership for a P60,000 cash investment, the entry to record his investment includes a:
a. credit to Bud, capital for P40,000
b. debit to Donna, capital for P6,000
c. credit to Rick, capital for P8,000
d. credit to Bud, capital for P60,000
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