PROBLEM 2 - 15 A and B Partnership's statement of financial position as of December 31, 2020 reported the following: Total assets Total liabilities AA, capital BB, capital P100,000 20,000 40,000 40,000 On January 3, 2021, AA and BB dissolved their partnership and transferred all assets and liabilities to a newly-formed corporation. At the date of incorporation, the fair value of the net assets was P12,000 more than the carrying amount on the partnership's books. AA and BB were each issued 5,000 shares of the corporation's P1 par value ordinary share. 00.0 How much is the share premium upon incorporation?
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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