A and B entered into a partnership agreement in which A is to have a 60% interest in capital and profits and B is to have a 40% interest in capital and profits. A will contribute cash and the following non-cash assets: Land -Cost-P25,000 FMV-P40,000; Building-Cost-P200,000 FMV P120,000; Equipment-Cost-P40,000 FMV-P30,000. There is a P60,000 mortgage on the Building that the partnership agrees to assume. B contributes P 100,000 cash to the partnership. How much is the additional cash investment of A to have a 60% share in the new partnership?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A and B entered into a partnership agreement in which A is to have a 60% interest in capital and profits and B is to have a 40% interest in capital and profits. A will contribute cash and the following non-cash assets: Land -Cost-P25,000 FMV-P40,000; Building-Cost-P200,000 FMV P120,000; Equipment-Cost-P40,000 FMV-P30,000. There is a P60,000 mortgage on the Building that the partnership agrees to assume. B contributes P 100,000 cash to the partnership. How much is the additional cash investment of A to have a 60% share in the new partnership?
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