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3. Cinvests P100,000 cash for a 20% interest in the partnership's net assets and profits. If the bonus method is used, how much is the capital balanoce of B after the admission of C? a. 165,350 b. 111,600 c. 100,000 d. 77,000

3. Cinvests P100,000 cash for a 20% interest in the partnership's net assets and profits. If the bonus method is used, how much is the capital balanoce of B after the admission of C? a. 165,350 b. 111,600 c. 100,000 d. 77,000

FINANCIAL ACCOUNTING
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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3. Under Millan book. This is not a part of our exam but is included in the reference book and I want to review its answer.

A&B Partnership admits C as a new partner. The statement of financial position before the admission of C is shown below: 26,000 Accounts payable Accounts receivable 120,000 A, Capital (0 interest in PA) 170,000 180,000 B, Capital (40% interest in P) 326,000 Total liabilities and equity NOT FOR SALEI Cash 62,000 Inventory Total assets 94,000 326,000 All rights belongs to respective authors. Please.com sider b oving the original.cony Chapter 3 92 The following adjustments are determined: • The recoverable amount of the accounts receivable is P116,400 A P25,000 recovery of a previous write-down on the inventory * should be recognized. • Prepaid assets of P3,600 and accrued liabilities of P4,000 should be recognized.
Transcribed Image Text:A&B Partnership admits C as a new partner. The statement of financial position before the admission of C is shown below: 26,000 Accounts payable Accounts receivable 120,000 A, Capital (0 interest in PA) 170,000 180,000 B, Capital (40% interest in P) 326,000 Total liabilities and equity NOT FOR SALEI Cash 62,000 Inventory Total assets 94,000 326,000 All rights belongs to respective authors. Please.com sider b oving the original.cony Chapter 3 92 The following adjustments are determined: • The recoverable amount of the accounts receivable is P116,400 A P25,000 recovery of a previous write-down on the inventory * should be recognized. • Prepaid assets of P3,600 and accrued liabilities of P4,000 should be recognized.
3. Cinvests P100,.000 cash for a 20% interest in the partnership's net assets and profits. If the bonus method is used, how much is the capital balance of B after the admission of C? a. 165,350 b. 111,600 c. 100,000 d. 77,000
Transcribed Image Text:3. Cinvests P100,.000 cash for a 20% interest in the partnership's net assets and profits. If the bonus method is used, how much is the capital balance of B after the admission of C? a. 165,350 b. 111,600 c. 100,000 d. 77,000
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