Jim and Joe are partners agreeing to share profits and losses in a 2:6 ratio, respectively. Business has been profitable and they have decided to admit Jewel to the partnership for a cash investment. The balances in Jim and Joe's capital accounts are presently P240,000 and P260,000, respectively. If Jewel is given a 25% interest in the partnership in exchange for P200,000, the entry to record her investment includes a
Jim and Joe are partners agreeing to share profits and losses in a 2:6 ratio, respectively. Business has been profitable and they have decided to admit Jewel to the partnership for a cash investment. The balances in Jim and Joe's capital accounts are presently P240,000 and P260,000, respectively. If Jewel is given a 25% interest in the partnership in exchange for P200,000, the entry to record her investment includes a
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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Jim and Joe are partners agreeing to share profits and losses in a 2:6 ratio, respectively. Business has been profitable and they have decided to admit Jewel to the partnership for a cash investment. The balances in Jim and Joe's capital accounts are presently P240,000 and P260,000, respectively.
If Jewel is given a 25% interest in the partnership in exchange for P200,000, the entry to record her investment includes a:
a. credit to Jim, capital for P6,250
b. debit to Joe, capital for P18,750
c. credit to Jewel, capital for P200,000
d. debit to Jewel, capital for P175,000
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