12. May 1, 2016, Cobb and Mott formed a partnership and agreed to share profits and losses in the ratio of 3:7, respectively. Cobb contributed a parcel of land that cost him P 10,000. Mott contributed P40,000 cash. The land was sold for P18,000 on May 1, 2016, immediately after formation of the partnership. What amount should be recorded in Cobb's capital account on formation of the partnership? * 20,000 O 17,400 18,000 O 15,000
12. May 1, 2016, Cobb and Mott formed a partnership and agreed to share profits and losses in the ratio of 3:7, respectively. Cobb contributed a parcel of land that cost him P 10,000. Mott contributed P40,000 cash. The land was sold for P18,000 on May 1, 2016, immediately after formation of the partnership. What amount should be recorded in Cobb's capital account on formation of the partnership? * 20,000 O 17,400 18,000 O 15,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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no.12
Transcribed Image Text:12. May 1, 2016, Cobb and Mott formed a partnership and agreed to share
profits and losses in the ratio of 3:7, respectively. Cobb contributed a
parcel of land that cost him P 10,000. Mott contributed P40,000 cash. The
land was sold for P18,000 on May 1, 2016, immediately after formation of
the partnership. What amount should be recorded in Cobb's capital
account on formation of the partnership? *
20,000
O 17,400
O 18,000
O 15,000
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