A & B formed a partnership. A contributed cash and land with a fair value of P60,000 and a book value of P50,000. B contributed P130,000 cash for 65% claim in the partnership's assets. Compute the amount of cash A should contribute.

A & B formed a partnership. A contributed cash and land with a fair value of P60,000 and a book value of P50,000. B contributed P130,000 cash for 65% claim in the partnership's assets. Compute the amount of cash A should contribute.

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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Question

A & B formed a partnership. A contributed cash and land with a fair value of P60,000
and a book value of P50,000. B contributed P130,000 cash for 65% claim in the
partnership's assets. Compute the amount of cash A should contribute.

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