Energetic, Fierce and Giant are partners with capital balances on January 2, 2021 of P350,000, P525,000 and P700,000, respectively. Their profit ratio and capital interest ratio is 5:3:2. On July 1, 2021, Humble was admitted by the partnership for 20% interest in capital and in profits by contributing P200,000 cash, and the old partners agree to bring their capital to their profit interest sharing ratio. The partnership had net income of P200,000 before admission of Humble and the partners agree to revalue its overvalued equipment by P50,000. How much is the amount paid/received by Giant?
Energetic, Fierce and Giant are partners with capital balances on January 2, 2021 of P350,000, P525,000 and P700,000, respectively. Their profit ratio and capital interest ratio is 5:3:2. On July 1, 2021, Humble was admitted by the partnership for 20% interest in capital and in profits by contributing P200,000 cash, and the old partners agree to bring their capital to their profit interest sharing ratio. The partnership had net income of P200,000 before admission of Humble and the partners agree to revalue its overvalued equipment by P50,000. How much is the amount paid/received by Giant?
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...
Related questions
Question
Energetic, Fierce and Giant are partners with capital balances on January 2, 2021 of P350,000, P525,000 and P700,000, respectively. Their profit ratio and capital interest ratio is 5:3:2. On July 1, 2021, Humble was admitted by the
How much is the amount paid/received by Giant?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,