If a new partner was admitted into the partnership by purchasing the interest of an existing partner in the amount of P850,000. Before the purchase, the existing partner’s capital account provided an amount of P500,000. What amount would be debited and credited in the partnership’s books? P500,000 P350,000 None. Only a memorandum entry is necessary. P850,000
If a new partner was admitted into the partnership by purchasing the interest of an existing partner in the amount of P850,000. Before the purchase, the existing partner’s capital account provided an amount of P500,000. What amount would be debited and credited in the partnership’s books? P500,000 P350,000 None. Only a memorandum entry is necessary. P850,000
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 47P
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If a new partner was admitted into the partnership by purchasing the interest of an existing partner in the amount of P850,000. Before the purchase, the existing partner’s capital account provided an amount of P500,000. What amount would be debited and credited in the partnership’s books?
P500,000
P350,000
None. Only a memorandum entry is necessary.
P850,000
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