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Show a table showing the equity structure

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Question - Assume that A and B share profits and losses 60:40. C is to be as a partner by contributing cash to the firm. The capital balances of A and B before the admission of C are as follows:

A, Capital P26,000

B, Capital 10,000

Required - Show a table showing the equity structure under each of the following cases:

Case 1. Bonus to new partner. C invests P10, 000 for a one-fourth interest in the new partnership.

Case 2. Bonus to old partners. C invests P10, 000 for a 20% interest in the new partnership.

Reference no: EM132856755

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