AA and BB entered into partnership on March 1, 2022 by investing the following assets: AA BB Cash P 30,000 Inventory P 90,000 Equipment 160,000 Furniture 200,000 The agreement between AA and BB provides that profits and losses are to be divided 40% and 60%, respectively, and that the partnership is to assume liability on the equipment of P60,000. The partners further agree that BB is to receive a capital credit equal to his profit and loss ratio. How much is the cash to be invested by BB?
AA and BB entered into partnership on March 1, 2022 by investing the following assets: AA BB Cash P 30,000 Inventory P 90,000 Equipment 160,000 Furniture 200,000 The agreement between AA and BB provides that profits and losses are to be divided 40% and 60%, respectively, and that the partnership is to assume liability on the equipment of P60,000. The partners further agree that BB is to receive a capital credit equal to his profit and loss ratio. How much is the cash to be invested by BB?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
AA and BB entered into
|
|
AA |
BB |
|
Cash |
P 30,000 |
|
|
Inventory |
|
P 90,000 |
|
Equipment |
|
160,000 |
|
Furniture |
200,000 |
|
The agreement between AA and BB provides that profits and losses are to be divided 40% and 60%, respectively, and that the partnership is to assume liability on the equipment of P60,000. The partners further agree that BB is to receive a capital credit equal to his
How much is the cash to be invested by BB?
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