What is the amount of bonus in the admission of manalo

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Reference no: EM132770092

Julian, Keno and Lapid are partners sharing profits in the ratio of 5:3:2, respectively. As of December 31, 2010, their capital balances were P95,000 for Julian, P80,000 for Keno and P60,000 for Lapid. On January 1, 2011, the partners admitted Manalo as a new partner and according to their agreement; Manalo will contribute P80,000 in cash to the partnership and also pay P10,000 for 15% of Keno's share. Manalo will be given a 20% share in profits, while the original partners' share will be proportionately the same as before. After the admission of Manalo, the total capital will be P330,000 and Manalo's capital will be P70,000.

Problem 1. What is the amount of asset revaluation?

A. P7,000

B. P15,000

C. P22,000

D. P37,000

Problem 2. What is the amount of bonus in the admission of Manalo?

A. P6,000

B. P11,000

C. P12,000

D. P22,000

Problem 3. What is the balance of Keno's capital, after the admission of Manalo?

A. P72,600

B. P74,600

C. P79,100

D. P81,100

Reference no: EM132770092

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