Problem: The following information is presented for the partnership of Diona, Klee and Qiqi, who share profits and losses in the ratio of 4:3:3, respectively. Diona, Capital P260,000 Klee, Capital 180,000 Qiqi, Capital 160,000 Assume that the partnership decided to admit Yaoyao as a new partner with a one-fourth interest. Required: For each of the following independent cases, determine the amount that Yaoyao must contribute in cash or other assets: 1. No goodwill or bonus will be recorded. A bonus of P24,000 is to be paid by Yaoyao to the prior partners. 2. The partners agreed that the total resulting capital should be P820,000 and no goodwill should be recognized. 3. Other assets are written down by P20,000 and a bonus of P40,000 is paid to Yaoyao at the time of admission. 4.

Problem: The following information is presented for the partnership of Diona, Klee and Qiqi, who share profits and losses in the ratio of 4:3:3, respectively. Diona, Capital P260,000 Klee, Capital 180,000 Qiqi, Capital 160,000 Assume that the partnership decided to admit Yaoyao as a new partner with a one-fourth interest. Required: For each of the following independent cases, determine the amount that Yaoyao must contribute in cash or other assets: 1. No goodwill or bonus will be recorded. A bonus of P24,000 is to be paid by Yaoyao to the prior partners. 2. The partners agreed that the total resulting capital should be P820,000 and no goodwill should be recognized. 3. Other assets are written down by P20,000 and a bonus of P40,000 is paid to Yaoyao at the time of admission. 4.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

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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