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13. In the AD partnership, Allen's capital is P140,000 and Daniel's is P40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. Allen and Daniel agree that some of the inventory is obsolete. The inventory account is decreased before David is admitted.

13. In the AD partnership, Allen's capital is P140,000 and Daniel's is P40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. Allen and Daniel agree that some of the inventory is obsolete. The inventory account is decreased before David is admitted.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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13. In the AD partnership, Allen's capital is P140,000 and Daniel's is P40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. Allen and Daniel agree that some of the inventory is obsolete. The inventory account is decreased before David is admitted. David invests P40,000 for one-fifth interest in the total capital of P220,000. The journal to record David's admission into the partnership will include: * a. A credit to Cash for P40,000 b. A debit to Allen, Capital for P3,000 O c. A credit to David, Capital for P40,000 O d. A credit to Daniel, Capital for P1,000
Transcribed Image Text:13. In the AD partnership, Allen's capital is P140,000 and Daniel's is P40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. Allen and Daniel agree that some of the inventory is obsolete. The inventory account is decreased before David is admitted. David invests P40,000 for one-fifth interest in the total capital of P220,000. The journal to record David's admission into the partnership will include: * a. A credit to Cash for P40,000 b. A debit to Allen, Capital for P3,000 O c. A credit to David, Capital for P40,000 O d. A credit to Daniel, Capital for P1,000
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