A partnership had the following condensed financial position: Assets Liabilities and Capital Liabilities 5,000 Cash 15,000 Non-cash assets 65,000 A, capital (80%) 40,000 A, loan 5,000 B, capital (20%) 75,000 20,000 Total 75,000 The partners agree to admit C as a member of the partnership. Problem 1: C purchases % interest in the firm. C pays the partners P15,000 which is divided between them in proportion to the equities given up. The journal entry to admit C as a new partner would be: a. A, capital 10,000 40,000 20,000 B, capital c. A, capital B, capital 5,000 15,000 60,000 b. A, capital 12,000 d. A, capital 9,375 B, capital 3,000 B, capital 9,375 15,000 18,750 C, capital C, capital C, capital C, capital

A partnership had the following condensed financial position: Assets Liabilities and Capital Liabilities 5,000 Cash 15,000 Non-cash assets 65,000 A, capital (80%) 40,000 A, loan 5,000 B, capital (20%) 75,000 20,000 Total 75,000 The partners agree to admit C as a member of the partnership. Problem 1: C purchases % interest in the firm. C pays the partners P15,000 which is divided between them in proportion to the equities given up. The journal entry to admit C as a new partner would be: a. A, capital 10,000 40,000 20,000 B, capital c. A, capital B, capital 5,000 15,000 60,000 b. A, capital 12,000 d. A, capital 9,375 B, capital 3,000 B, capital 9,375 15,000 18,750 C, capital C, capital C, capital C, capital

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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