formation. Pamu contributed a parcel of land that cost her P200,000. Kevin contributed P300,000 cash. The land has a quoted price of P360,000 on October 1, 2021. What amount should be recorded in Pamu’s capital account upon formation of the partnership assuming the use of bonus method? a. P150,000 b. P198,000 c. P200,000 d. P360,000

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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On October 1, 2021, Pamu and Kevin formed a partnership and agreed to share profits and losses
in the ratio of 3:7, respectively. Balances of capital accounts should be in accordance with the profit
and loss
percentage on the date of partnership formation. Pamu contributed a parcel of land that cost
her P200,000. Kevin contributed P300,000 cash. The land has a quoted price of P360,000 on October
1, 2021. What amount should be recorded in Pamu’s capital account upon formation of the
partnership assuming the use of bonus method?


a. P150,000
b. P198,000
c. P200,000
d. P360,000

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