1. On May 1, 2008, Jose and Pedro formed a partnership and agreed to share profits and losses in the ratio of 3:7, respectively. Jose contributed a computer that cost him P50,000.Pedro contributed P200,000 cash. The computer was sold for P55,000 on May 1, 2008 immediately after the formation of the partnership. What amount should be recorded in Jose's capital account on formation of the partnership?
1. On May 1, 2008, Jose and Pedro formed a partnership and agreed to share profits and losses in the ratio of 3:7, respectively. Jose contributed a computer that cost him P50,000.Pedro contributed P200,000 cash. The computer was sold for P55,000 on May 1, 2008 immediately after the formation of the partnership. What amount should be recorded in Jose's capital account on formation of the partnership?
1. On May 1, 2008, Jose and Pedro formed a partnership and agreed to share profits and losses in the ratio of 3:7, respectively. Jose contributed a computer that cost him P50,000.Pedro contributed P200,000 cash. The computer was sold for P55,000 on May 1, 2008 immediately after the formation of the partnership. What amount should be recorded in Jose's capital account on formation of the partnership?
1. On May 1, 2008, Jose and Pedro formed a partnership and agreed to share profits and losses in the ratio of 3:7, respectively. Jose contributed a computer that cost him P50,000.Pedro contributed P200,000 cash. The computer was sold for P55,000 on May 1, 2008 immediately after the formation of the partnership. What amount should be recorded in Jose's capital account on formation of the partnership?
Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.
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