On January 1, 200D, Bamby and Candy invited Dandy and Ely to join them in their business. On this date, their capital balances were P 80,000 for Bamby and P 20,000 for Candy. The profit and loss sharing ratio of Bamby and Candy is proportionate to their capital balances. Dandy bought 40% of the capital and earnings of Bamby for P 40,000. Ely invested P 90,000 for a 50% interest in the capital and earnings of the new partnership. The new capital was agreed at P 200,000. 4.11 REQUIRED: a. Entry to record the admission of the new partners. b. What is the new profit and loss sharing ratio?
On January 1, 200D, Bamby and Candy invited Dandy and Ely to join them in their business. On this date, their capital balances were P 80,000 for Bamby and P 20,000 for Candy. The profit and loss sharing ratio of Bamby and Candy is proportionate to their capital balances. Dandy bought 40% of the capital and earnings of Bamby for P 40,000. Ely invested P 90,000 for a 50% interest in the capital and earnings of the new partnership. The new capital was agreed at P 200,000. 4.11 REQUIRED: a. Entry to record the admission of the new partners. b. What is the new profit and loss sharing ratio?
Chapter13: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 47P
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Transcribed Image Text:4.11 On January 1, 200D, Bamby and Candy invited Dandy and Ely to
join them in their business. On this date, their capital balances were
P 80,000 for Bamby and P 20,000 for Candy. The profit and loss
sharing ratio of Bamby and Candy is proportionate to their capital
balances. Dandy bought 40% of the capital and earnings of Bamby
for P 40,000. Ely invested P 90.000 for a 50% interest in the
capital and earnings of the new partnership. The new capital was
agreed at P 200,000.
REQUIRED:
a. Entry to record the admission of the new partners.
b. What is the new profit and loss sharing ratio?
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