J, H, and N are partners with present capital balances of P40,000 , P50,000 andP20,000 respectively. The partners share profits and losses according to the following percentages: 50% for A, 20% for B, and 30% for C. D is to join the partnership upon contributing P55,OOO to the partnership in exchange for a 35% interest in capital and a 20% interest in profits and losses. An appraisal of the existing partnerships' assets reveals the following: Accounts Receivable 20,000 overvalued; Inventory 10,000 overvalued; Land 10,000 undervalued; Building 15,000 undervalued. What is the bonus of N in the new partnership assuming bonus method?
J, H, and N are partners with present capital balances of P40,000 , P50,000 andP20,000 respectively. The partners share profits and losses according to the following percentages: 50% for A, 20% for B, and 30% for C. D is to join the partnership upon contributing P55,OOO to the partnership in exchange for a 35% interest in capital and a 20% interest in profits and losses. An appraisal of the existing partnerships' assets reveals the following: Accounts Receivable 20,000 overvalued; Inventory 10,000 overvalued; Land 10,000 undervalued; Building 15,000 undervalued. What is the bonus of N in the new partnership assuming bonus method?
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 4CE
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J, H, and N are partners with present capital balances of P40,000 ,
P50,000 andP20,000 respectively. The partners share
according to the following percentages: 50% for A, 20% for B, and 30%
for C. D is to join the partnership upon contributing P55,OOO to the
partnership in exchange for a 35% interest in capital and a 20% interest in
profits and losses. An appraisal of the existing partnerships' assets reveals
the following: Accounts Receivable 20,000 overvalued; Inventory 10,000
overvalued; Land 10,000 undervalued; Building 15,000 undervalued. What
is the bonus of N in the new partnership assuming bonus method?
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