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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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
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