Answered: 1. How much are the shares of Edulan…

Business

Accounting

1. How much are the shares of Edulan and Labasan on the remaining capitalization of the partnership? R76 000 0nnh

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

Question

100%

Charles Edulan, Corazon Tabarranza, and Henry Labasan are planning to form a partnership with Tabarranza
contributing cash of P75,000 for a 1/5 interest in the partnership. Edulan and Labasan will share equally in the
remaining required capitalization.
1. How much are the shares of Edulan and Labasan on the remaining capitalization
the partnership?
a. P75,000 each respectively
b. P80,000 each respectively
P150,000 each respectively
d. P200,000 each respectively
C.
Solution:
2. How much is the total assets of the partnership upon formation?
P300,000
P350,000
P375,000
a.
b.
C.

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