Show the solution in good accounting form May, Two, and Low, sharing profits and losses in the ratio of 50:30:20, have capital credit balances of P400,000; P300,000 and P200,000, respectively. They decided to admit Nose as a new partner for a 30% interest in the partnership upon Nose's investment of an amount equal to five-sixths of his capital credit with no asset adjustment to be recognized. Immediately after the admission of Nose, how much will be the capital credit balance of Two? A. 300,000 B. 270,000 C. 282,000 D. 250,000
Show the solution in good accounting form May, Two, and Low, sharing profits and losses in the ratio of 50:30:20, have capital credit balances of P400,000; P300,000 and P200,000, respectively. They decided to admit Nose as a new partner for a 30% interest in the partnership upon Nose's investment of an amount equal to five-sixths of his capital credit with no asset adjustment to be recognized. Immediately after the admission of Nose, how much will be the capital credit balance of Two? A. 300,000 B. 270,000 C. 282,000 D. 250,000
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
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Show the solution in good accounting form
May, Two, and Low, sharing profits and losses in the ratio of 50:30:20, have capital credit balances of P400,000; P300,000 and P200,000, respectively. They decided to admit Nose as a new partner for a 30% interest in the partnership upon Nose's investment of an amount equal to five-sixths of his capital credit with no asset adjustment to be recognized.
Immediately after the admission of Nose, how much will be the capital credit balance of Two?
A. 300,000
B. 270,000
C. 282,000
D. 250,000
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