7. Flor and Gerby formed a partnership. Flor contributed cash of P30,000 and a computer costing P60,000. Gerby contributed equipment costing P60,000. The current market values of the non-cash assets are: computer-P45,000 and equipment- P75,000. The partnership will not assume the P15,000 liability on the equipment contributed by Gerby. What amount will be credited to each partner's capital accounts?

7. Flor and Gerby formed a partnership. Flor contributed cash of P30,000 and a computer costing P60,000. Gerby contributed equipment costing P60,000. The current market values of the non-cash assets are: computer-P45,000 and equipment- P75,000. The partnership will not assume the P15,000 liability on the equipment contributed by Gerby. What amount will be credited to each partner's capital accounts?

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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A, B, and C are partners with present capital balances of P40,000, P50,000, and P20,000, respectively. The partners share profits and losses according to the following percentages: 60% for A, 30% for B, and 10% for C. D is to join the partnership upon contributing P40,000 to the partnership in exchange for a 25% interest in capital and a 20% interest in profits and losses. An appraisal of the existing partnerships' assets reveals the following: Accounts Receivable P20,000 overvalued Inventory P10,000 overvalued Land P10,000 undervalued Building P15,000 undervalued Calculate the capital balances for each individual in the new partnership assuming use of the bonus method.
Abner and Bimbo have just formed partnership, Abner contributed cash of P2,346,000 and office equipment that cost P1,170,000. The equipment had been used in the sole proprietorship and had been 80% depreciated. The current fair value of the equipment is P756,000. An unpaid mortgage loan on the equipment of P252,000 will be assumed by the partnership. Abner is to have a 60% interest in the partnership net assets. Bimbo is to contribute only, merchandise with a fair value of P 1,890,000. Required: Use Bonus and Goodwill Method in computing the capital balances of Abner and Bimbo.
L, E, and A are partners with capital balances of P787,500, P945,000, and P315,000, respectively. The partners share profits and losses in the ratio of 45:25:30, respectively. D is to join the partnership upon contributing P315,000 cash plus an equipment with fair value of P630,000 to the partnership in exchange for 20% interest in the capital and 25% interest in the profits and losses. After admission, the original partners will share profits and losses equally. How much is bonus to (from) D assuming the existing assets of the original partnership are overvalued by P192,500? Assuming the existing assets of the original partnership are undervalued by P192,500, what is the capital balance of A after the admission of D?
Abner and Bimbo have just formed a partnership, Abner contributed cash of P2,346,000 and office equipment that cost P1,170,000. The equipment had been used in the sole proprietorship and had been 80% depreciated. The current fair value of the equipment is P756,000. An unpaid mortgage loan on the equipment of P252,000 will be assumed by the partnership. Abner is to have a 40% interest in the partnership net assets. Bimbo is to contribute only merchandise with a fair value of P1,890,000. Required: Use Bonus and Goodwill Method in computing the capital balances of Abner and Bimbo.
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