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4. On February 1, 20xx, Gina and Karren formed a partnership, agreeing to share profits and losses in the ratio of 3:7 respectively. Gina contributed P300,000 cash. Karren contributed a parcel of land that cost P700,000. Three hours after formation of the partnership, the land was sold for P750,000. How much should be recorded in Karren's capital account on formation of the partnership? a. P 300,000. b. P 350,000. c. P 700,000. d. P 750,000. e. None of the above

4. On February 1, 20xx, Gina and Karren formed a partnership, agreeing to share profits and losses in the ratio of 3:7 respectively. Gina contributed P300,000 cash. Karren contributed a parcel of land that cost P700,000. Three hours after formation of the partnership, the land was sold for P750,000. How much should be recorded in Karren's capital account on formation of the partnership? a. P 300,000. b. P 350,000. c. P 700,000. d. P 750,000. e. None of the above

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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4. On February 1, 20xx, Gina and Karren formed a partnership, agreeing to share profits and losses in the ratio of 3:7 respectively. Gina contributed P300,000 cash. Karren contributed a parcel of land that cost P700,000. Three hours after formation of the partnership, the land was sold for P750,000. How much should be recorded in Karren's capital account on formation of the partnership? Nam Prog Exer Two a. P 300,000. b. P 350,000. 1. C c. P 700,000. d. P 750,000. e. None of the above
Transcribed Image Text:4. On February 1, 20xx, Gina and Karren formed a partnership, agreeing to share profits and losses in the ratio of 3:7 respectively. Gina contributed P300,000 cash. Karren contributed a parcel of land that cost P700,000. Three hours after formation of the partnership, the land was sold for P750,000. How much should be recorded in Karren's capital account on formation of the partnership? Nam Prog Exer Two a. P 300,000. b. P 350,000. 1. C c. P 700,000. d. P 750,000. e. None of the above
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