Peter, James, and John are partners with capital investments of P450,000,P350,000 and P500,000 respectively. Upon the formation of the business, the three agreed to share profits and losses in the ratio of 4:3:3 . Andrew was admitted into the partnership by investing cash of p488,000 for a 30% interest in the partnership. How much is the bonus given by James to Andrew?
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Peter, James, and John are partners with capital investments of P450,000,P350,000 and P500,000 respectively. Upon the formation of the business, the three agreed to share
Note: Round of answer to the nearest peso.
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