Kris and Mark are partners who share profits and losses at 7:3 with capital account balances of P170,000 and P260,000, respectively. They decided to admit Franky into the partnership who shall invest P120,000 for a 25% equity interest. Bonus method is to be applied. The peso amount of bonus recognized in Franky’s capital account at the date of admission would be ?
Kris and Mark are partners who share profits and losses at 7:3 with capital account balances of P170,000 and P260,000, respectively. They decided to admit Franky into the partnership who shall invest P120,000 for a 25% equity interest. Bonus method is to be applied. The peso amount of bonus recognized in Franky’s capital account at the date of admission would be ?
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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Kris and Mark are partners who share
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