2 On July 1, 2016, Anne, Bianca, and Carla formed a business partnership to be operated as an advertising agency. Anne contributed P10M cash while Bianca shall have a capital credit of P6M upon receipt of bonus of P1M from Anne based on the provision in Articles of Co-Partnership. The terms of the agreement provides that Anne and Bianca shall have a combined40% capital inters in the newly formed partnership |What is the capital contribution made by Carla to the partnership? P 24,000,000 b. P 22,500,000 c P 25,000,000 d. P 32,000,000 a
2 On July 1, 2016, Anne, Bianca, and Carla formed a business partnership to be operated as an advertising agency. Anne contributed P10M cash while Bianca shall have a capital credit of P6M upon receipt of bonus of P1M from Anne based on the provision in Articles of Co-Partnership. The terms of the agreement provides that Anne and Bianca shall have a combined40% capital inters in the newly formed partnership |What is the capital contribution made by Carla to the partnership? P 24,000,000 b. P 22,500,000 c P 25,000,000 d. P 32,000,000 a
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kindly answer 2 and 3 thank you
Transcribed Image Text:2 On July 1, 2016, Anne, Bianca, and Carla formed a business partnership to be operated as an advertising
agency. Anne contributed P10M cash while Bianca shall have a capital credit of P6M upon receipt of
bonus of P1M from Anne based on the provision in Articles of Co-Partnership. The terms of the agreement
provides that Anne and Bianca shall have a combined40% capital inters in the newly formed partnership
What is the capital contribution made by Carla to the partnership?
P 24,000,000
b. P 22,500,000
C P 25,000,000
a
d. P 32,000,000
3 On January 1, 2016, Regina, Jessica and Nataly formed a partnership with profit and loss sharing agreement
of 2:3:5;
Regina contributed a land with assessed value from city assessor in the amount of P 1,000,000. The land is
subject to a real estate mortgage which is annotated to the title of the land in the amount of P 800,000 and
will be assumed by the partnership. The appraised value of the land is P 2,400,000. Jessica contributed a
building with a cost of P 2,000,000 and accumulated depreciation of P 1,500,000. The fair value of the
|building is P 800,000. Nataly contributed investment in trading securities with historical cost of
P 6,000,000. The trading securities have a quoted price in active market of P 3,000,000.
|The partners decided to bring their capital balances in accordance with their profit or loss sharing
agreement. The total agreed capitalization of the new partnership is P 10,000,000.
Which of the following statements is correct?
|The agreed capital of Nataly is P 500,000
b Regina should contribute additional capital in the amount of P 1,800,000
Jessica should contribute additional capital in the amount of P 2,200,000
Nataly is entitled to withdraw in the amount of P 1,000,000
a
d
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