Solution-How much would be credited to c capital account

How much would be credited to c capital account

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Reference no: EM132755254

The following are the capital account balances and profit and loss ratios of the partners in AB Partnership as of Jan. 1, 20x1:

Capital accounts Profit & loss ratios

A, Capital 600,000 40%

B, Capital 1,000,000 60%

1,600,000

Problem 1: On Jan. 1, 20x1, C was admitted into the partnership when he invested equipment with a historical cost of ?400,000 and fair value of ?320,000 for a 20% interest. The net assets of the partnership as of this date approximate their fair values. If the bonus method is used to record the admission of C, how much would be credited to C's capital account?

Reference no: EM132755254

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How much would be credited to c capital account

Reference no: EM132755254

Reference no: EM132755254

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