noni and nino are partners who share profit or loss in the ration of 6:4 they have capital balance of P700,000 and P300,000, respectively. Nino infrom noni of his intention to withdraw part of her capital in the partnership. However, there is not much cash for his withdrawal cause funds are tied up in non cash assets. Instead of withdrawing his share he opted to sell part of his interest to Nina which is a common friend of both partners. Nina agrees to purchase 1/3 of Nino’s interest for P150,000 Required: A. The entry in the partnership book upon admission of Nina would have debit _________ and credit ______

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter4: Gross Income
Section: Chapter Questions
Problem 28P
icon
Related questions
Question

noni and nino are partners who share profit or loss in the ration of 6:4 they have capital balance of P700,000 and P300,000, respectively. Nino infrom noni of his intention to withdraw part of her capital in the partnership. However, there is not much cash for his withdrawal cause funds are tied up in non cash assets. Instead of withdrawing his share he opted to sell part of his interest to Nina which is a common friend of both partners. Nina agrees to purchase 1/3 of Nino’s interest for P150,000

Required:

A. The entry in the partnership book upon admission of Nina would have debit _________ and credit ______

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Partners and Partnerships
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
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
SWFT Corp Partner Estates Trusts
SWFT Corp Partner Estates Trusts
Accounting
ISBN:
9780357161548
Author:
Raabe
Publisher:
Cengage
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
Individual Income Taxes
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT