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New Partner Admission in Partnerships

The document discusses partnership admissions and bonuses. It states that a new partner admission involving a bonus results in a bonus to either old or existing partners, but not both. When a new partner invests directly in the partnership, it increases capital even under the bonus method. Admitting a new partner who invests P200,000 for a 16% interest in a partnership between Dada and Elma, who share profits equally, results in a revaluation of assets of P50,000 to set the total agreed capital at P1,250,000.

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Von Andrei Medina
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219 views1 page

New Partner Admission in Partnerships

The document discusses partnership admissions and bonuses. It states that a new partner admission involving a bonus results in a bonus to either old or existing partners, but not both. When a new partner invests directly in the partnership, it increases capital even under the bonus method. Admitting a new partner who invests P200,000 for a 16% interest in a partnership between Dada and Elma, who share profits equally, results in a revaluation of assets of P50,000 to set the total agreed capital at P1,250,000.

Uploaded by

Von Andrei Medina
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

1.

The admission of a new partner involving bonus will result in


Bonus to either old or new, but not both

2. Statement 1: The admission of new partner through his direct investment in the partnership will
increase the partnership capital even under bonus method.
Statement 2: The admission of new partner through purchase of interest of existing partner will increase
partnership capital.
Only statement 1 is true

3. Dada and Elma are partners with capital balances of P400,000 and P600,000, respectively. They share
profits and losses equally. They decided to admit Jhai as a partner who will invest P200,000 for a 16%
interest. Total agreed capital is P1,250,000. Which of the following statements is true?
There is revaluation of assets equal to P50,000

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