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A & B are partners who share income in the ratio of 2:1 and who have capital balances of P 65 000 and P 35 000 respectively. If C, with the consent of B, acquired one half of A’s interest for P 40 000. For what amount would C’s capital account be credited? a. P 32 500 b.   P 40 000                 c.   P 50 000                 d. None of these

A & B are partners who share income in the ratio of 2:1 and who have capital balances of P 65 000 and P 35 000 respectively. If C, with the consent of B, acquired one half of A’s interest for P 40 000. For what amount would C’s capital account be credited? a. P 32 500 b.   P 40 000                 c.   P 50 000                 d. None of these

FINANCIAL ACCOUNTING
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 are partners who share income in the ratio of 2:1 and who have capital balances of P 65 000 and P 35 000 respectively. If C, with the consent of B, acquired one half of A’s interest for P 40 000. For what amount would C’s capital account be credited?

a. P 32 500

b.   P 40 000                

c.   P 50 000                

d. None of these

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