Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on march 1, 2016, a and b invested in its first ye

On March 1, 2016, A and B invested in its first year of operations the...

90.2K

Verified Solution

Question

Accounting

On March 1, 2016, A and B invested in its first year of operations the following cash: A, P480,000 and B, P240,000.

 

The partners agree to allocate profits and losses as follows:  

 

A and B will be allowed a monthly salary of P48,000 and P24,000, respectively.  
The partners will be allowed with interest of 10% of their capital balances at the beginning of each year.  
The remainder will be divided on the bases of their beginning capital for the first year of operation and equally for the subsequent years.  
Each partner is allowed to withdraw up to P24,000 a year. Any withdrawal in excess will be treated as a direct reduction from their capital balances.
 

In 2016, the partnership suffered a net loss of P36,000. But in 2017 they earned a net profit of P132,000. The partners withdrew the maximum amount from the partnership each year. On January 1, 2018, a new partner, C was admitted in the partnership for an investment of P400,000 for a 40% interest. No revaluation of assets is to be recorded. After the admission of C, the partners agreed to divide profits and losses, 4:2:4, to A, B and C respectively.

 

Requirement: On January 1, 2018, what is the entry to record the admission of C?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Find the two dimensional shape of the given object O Rectangle O Square rectangular prism

Geometry
Q

Your parents have been advised to save 5% of their income for your collegeeducation, which...

Basic Math
Q

Find the number that belongs in the green box 23 2 47 27 39 Round...

Calculus
Q

?CUT = ?RATGiven: B is the midpoint of AELA = LELCBA = LDBE

Algebra
Q

[The following information applies to the questions displayed below.] Eddy's Fishing...

Accounting
Q

i need the answer veey fast plz i have 1 hour and 30 mins. ...

Accounting
Q

D Question 28 1 pts Any general practice of method of performance that is specific...

Accounting
Q

In February direct labor was 60% percent of conversion cost. If the manufacturing overhead cost...

Accounting
Q

Derby Phones is considering the introduction of a new model of headphones with the following...

Accounting
Q

LAG Network Inc.'s balance sheet and income statement are as follows: LAG Network Inc. Income...

Finance
Q

The cash balance per the books of Black Company is $92,100 on November 30,2003 ....

Accounting
Q

Randal Inc. will generate $73,000 in annual revenue each year for the next 8 years...

Accounting