A and B are partners in AB Partnership sharing profits and losses 25% and 75%, respectively. On January 1, 2020, the partners revised their profits and loss sharing ratio into 40% to A and 60% to B. On the date of change, the partnership’s land with a carrying value of P500,000 was appraised to have a fair value of P1,000,000. On August 1, 2020, the land was sold for P1,500,000. The total increase in the capital of B as a result of the above was:
A and B are partners in AB Partnership sharing profits and losses 25% and 75%, respectively. On January 1, 2020, the partners revised their profits and loss sharing ratio into 40% to A and 60% to B. On the date of change, the partnership’s land with a carrying value of P500,000 was appraised to have a fair value of P1,000,000. On August 1, 2020, the land was sold for P1,500,000. The total increase in the capital of B as a result of the above was:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A and B are partners in AB Partnership sharing profits and losses 25% and 75%, respectively. On January 1, 2020, the partners revised their
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education