In the AD partnership, Allen's capital is P140,000 and Daniel's is P40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. What amount will David have to invest to give him one-fifth percent interest in the capital of the partnership if no goodwill or bonus is recorded?
In the AD partnership, Allen's capital is P140,000 and Daniel's is P40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. What amount will David have to invest to give him one-fifth percent interest in the capital of the partnership if no goodwill or bonus is recorded?
Chapter10: Partnership Taxation
Section: Chapter Questions
Problem 4MCQ
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Transcribed Image Text:In the AD partnership, Allen's capital is
P140,000 and Daniel's is P40,000 and they
share income in a 3:1 ratio, respectively. They
decide to admit David to the partnership. What
amount will David have to invest to give him
one-fifth percent interest in the capital of the
partnership if no goodwill or bonus is recorded?
Transcribed Image Text:In the AD partnership, Allen's capital is
P140,000 and Daniel's is P40,000 and they
share income in a 3:1 ratio, respectively. They
decide to admit David to the partnership. Allen
and Daniel agree that some of the inventory is
obsolete. The inventory account is decreased
before David is admitted. David invests P40,000
for a one-fifth interest. What is the amount of
inventory written down?
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