The CFM Partnership shows the following profit and loss ratios and capital balances: Carter - 60% P 252,000; Fisher - 30% P126,000; Malone -P 10% P 42,000 = 420,000 The partners decide to sell Shaq 20% of their respective capital and profit and loss interests for a total payment P 90,000. Shaq will pay the money directly to the partners. 1. If the partners agree that asset revaluation is to be recorded prior to the admission of Shaq, what are the capital balances of the partners after Shaq's admission? 2. If the partners agree that bonus method is used, what are the capital balances of the partners after the admission of Shaq to the partnership? Assuming Shaq decided to invest his total payment of P 90,000. Carter Fisher Malone Shaq
The CFM Partnership shows the following profit and loss ratios and capital balances: Carter - 60% P 252,000; Fisher - 30% P126,000; Malone -P 10% P 42,000 = 420,000 The partners decide to sell Shaq 20% of their respective capital and profit and loss interests for a total payment P 90,000. Shaq will pay the money directly to the partners. 1. If the partners agree that asset revaluation is to be recorded prior to the admission of Shaq, what are the capital balances of the partners after Shaq's admission? 2. If the partners agree that bonus method is used, what are the capital balances of the partners after the admission of Shaq to the partnership? Assuming Shaq decided to invest his total payment of P 90,000. Carter Fisher Malone Shaq
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 42P
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Transcribed Image Text:The CFM Partnership shows the following profit and loss ratios and capital balances:
Carter - 60% P 252,000; Fisher - 30% P 126,000; Malone -P 10% P 42,000 = 420,000
The partners decide to sell Shaq 20% of their respective capital and profit and loss interests for a
total payment P 90,000. Shaq will pay the money directly to the partners.
If the partners agree that asset revaluation is to be recorded prior to the admission of
Shaq, what are the capital balances of the partners after Shaq's admission?
1.
2. If the partners agree that bonus method is used, what are the capital balances of
the partners after the admission of Shaq to the partnership? Assuming Shaq
decided to invest his total payment of P 90,000.
Carter
Fisher
Malone
Shaq
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