What is the amount of bonus given by D to the existing partners? P200,000P300,000P100,000P150,000 On December 31, 2018, the Statement of Financial Position of ABC Partnership providedthe following data with profit or loss ratio of 5:1:4:Current AssetsNoncurrent AssetsP 500,0001,100,0001,200,000700,000On January 1, 2019, D is admitted to the partnership by investing P500.000 to thepartnership for 10% capital interest. The total agreed capitalization of the new partnershipP 1,500,0002,000,000Total LiabilitiesA, CapitalB, CapitalC, Capitalis P 3,000,000.

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What is the amount of bonus given by D to the existing partners? P200,000 P300,000 P100,000 P150,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Partnership Accounting

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.

Partner Admission and Withdrawal

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.

Question

What is the amount of bonus given by D to the existing partners?

P200,000

P300,000

P100,000

P150,000

On December 31, 2018, the Statement of Financial Position of ABC Partnership provided
the following data with profit or loss ratio of 5:1:4:
Current Assets
Noncurrent Assets
P 500,000
1,100,000
1,200,000
700,000
On January 1, 2019, D is admitted to the partnership by investing P500.000 to the
partnership for 10% capital interest. The total agreed capitalization of the new partnership
P 1,500,000
2,000,000
Total Liabilities
A, Capital
B, Capital
C, Capital
is P 3,000,000.

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