Homework Help is Here – Start Your Trial Now!
Business
Accounting
7. The capital accounts and profit and loss sharing ratios of A, B and Care as follows: Capital PIL A 139,200 1/2 B 206,800 1/3 96,000 1/6 On this date, Dis admitted to the partnership when he purchased, for P132.000, a proportionate interest from A and B in the net assets and profits of the partnership. As a result of the transaction, D acquired one-fith interest in the net assets and profits of the firm. What is the combined gain realized by A and B upon the sale of a portion of their interest in the partnership to D? a 0 b. 43.200 C. 62,400 d. 82.000

7. The capital accounts and profit and loss sharing ratios of A, B and Care as follows: Capital PIL A 139,200 1/2 B 206,800 1/3 96,000 1/6 On this date, Dis admitted to the partnership when he purchased, for P132.000, a proportionate interest from A and B in the net assets and profits of the partnership. As a result of the transaction, D acquired one-fith interest in the net assets and profits of the firm. What is the combined gain realized by A and B upon the sale of a portion of their interest in the partnership to D? a 0 b. 43.200 C. 62,400 d. 82.000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

7. 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.

7. The capital accounts and profit and loss sharing ratios of A, B and Care as follows: Capitat 139,200 PIL A 1/2 B 206,800 96,000 1/3 1/6 On this date, Dis admitted to the partnership when he purchased, for P132,000, a proportionate interest from A and B in the net assets and profits of the partnership. As a result of the transaction, D acquired one-fith interest in the net assets and profits of the firm. What is the combined gain realized by A and B upon the sale of a portion of their interest in the partnership to D? c. 62,400 d. 82,000 a 0 b. 43,200
Transcribed Image Text:7. The capital accounts and profit and loss sharing ratios of A, B and Care as follows: Capitat 139,200 PIL A 1/2 B 206,800 96,000 1/3 1/6 On this date, Dis admitted to the partnership when he purchased, for P132,000, a proportionate interest from A and B in the net assets and profits of the partnership. As a result of the transaction, D acquired one-fith interest in the net assets and profits of the firm. What is the combined gain realized by A and B upon the sale of a portion of their interest in the partnership to D? c. 62,400 d. 82,000 a 0 b. 43,200
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS