5. A and B agreed to form a partnership. The parthership agreement stipulates the following - Initial capital of P300,000. - A 25:75 interest in the equity of the partnership. A contributed P100,000 cash, while B contributed P200,000 cash. Which partner should provide additional investment (or withdraw part of his investment) in order to bring the partners capital credits equal to their respective interests in the equity of the partnership? a. A shall provide additional capital of P25,000. b. B shall withdraw capital of P25,000. C. Bshall make an additional investment of P25,000. d. No additional contribution or withdrawal shail be made.
5. A and B agreed to form a partnership. The parthership agreement stipulates the following - Initial capital of P300,000. - A 25:75 interest in the equity of the partnership. A contributed P100,000 cash, while B contributed P200,000 cash. Which partner should provide additional investment (or withdraw part of his investment) in order to bring the partners capital credits equal to their respective interests in the equity of the partnership? a. A shall provide additional capital of P25,000. b. B shall withdraw capital of P25,000. C. Bshall make an additional investment of P25,000. d. No additional contribution or withdrawal shail be made.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
5. Under partnership formation
Transcribed Image Text:5. A and B agreed to form a partnership. The partnership
agreement stipulates the following:
• Initial capital of P300,000.
• A 25:75 interest in the equity of the partnership.
A contributed P100,000 cash, while B contributed P200,000 cash.
Which partner should provide additional investment (or
withdraw part of his investment) in order to bring the partners'
capital credits equal to their respective interests in the equity of
the partnership?
a. A shall provide additional capital of P25,000.
b. B shall withdraw capital of P25,000.
c. B shall make an additional investment of P25,000.
d. No additional contribution or withdrawal shall be made.
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