Mom, Pop, and Son are partners sharing profits and losses at 5:3:2, respectively. As of December 31, 2016, their capital balances were: Mom P997,500 Pop P840,000 Son P630,000 On January 1, 2017, the partners admitted Dad as a new partner and according to theiragreement, Dad will contribute P840,000 in cash to the partnership and also pay P105,000 for15% of Pop's share. Dad will be given a 20% share in profits, while the original partners' share will be proportionately the same as before. After admission of Dad, the total capital will beP3,465,000 and Dad's capital will be P735,000.What is the amount of asset revaluation? What is the bonus in the admission of Dad?
Mom, Pop, and Son are partners sharing profits and losses at 5:3:2, respectively. As of December 31, 2016, their capital balances were: Mom P997,500 Pop P840,000 Son P630,000 On January 1, 2017, the partners admitted Dad as a new partner and according to theiragreement, Dad will contribute P840,000 in cash to the partnership and also pay P105,000 for15% of Pop's share. Dad will be given a 20% share in profits, while the original partners' share will be proportionately the same as before. After admission of Dad, the total capital will beP3,465,000 and Dad's capital will be P735,000.What is the amount of asset revaluation? What is the bonus in the admission of Dad?
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...
Related questions
Question
Mom, Pop, and Son are partners sharing
On January 1, 2017, the partners admitted Dad as a new partner and according to theiragreement, Dad will contribute P840,000 in cash to the partnership and also pay P105,000 for15% of Pop's share. Dad will be given a 20% share in profits, while the original partners' share will be proportionately the same as before. After admission of Dad, the total capital will beP3,465,000 and Dad's capital will be P735,000.What is the amount of asset revaluation? What is the bonus in the admission of Dad?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT