AB Partnership admits C as a new partner. The statement of financial position before the admission of C is shown below: Cash Accounts receivable 120,000 A, Capital ( interest in PA 170,000 Inventory Total assets 26,000 Accounts payable 62,000 180,000 B, Capital (% interest in PA) 326,000 Total liabilities and equity 94.000 326.000 The following adjustments are determined: • The recoverable amount of the accounts receivable is P116,4 • A P25,000 recovery of a previous write-down on the invent should be recognized. • Prepaid assets of P3,600 and acrued liabilities of P should be recognized. (AICPA Adapted) 1. Cacquires half of B's interest in the partnership for PI00,C How much is the çapital balance of Bafter the admission of a. 47,000 c. 51,200 d. 182,600
AB Partnership admits C as a new partner. The statement of financial position before the admission of C is shown below: Cash Accounts receivable 120,000 A, Capital ( interest in PA 170,000 Inventory Total assets 26,000 Accounts payable 62,000 180,000 B, Capital (% interest in PA) 326,000 Total liabilities and equity 94.000 326.000 The following adjustments are determined: • The recoverable amount of the accounts receivable is P116,4 • A P25,000 recovery of a previous write-down on the invent should be recognized. • Prepaid assets of P3,600 and acrued liabilities of P should be recognized. (AICPA Adapted) 1. Cacquires half of B's interest in the partnership for PI00,C How much is the çapital balance of Bafter the admission of a. 47,000 c. 51,200 d. 182,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Under Millan book. This is not a part of our exam but is included in the reference book and I want to review its answer.
Transcribed Image Text:A P25,000 recovery of a previous write-down on the inventory
A&B Partnership admits C as a new partner. The statement of
financial position before the admission of C is shown below:
Cash
26,000 Accounts payable
62,000
Accounts receivable 120,000 A, Capital ( interest in PA) 170,000
Inventory
Total assets
180,000 B, Capital (40% interent in ) 94.000
326,000
Total liabilities and oquity
326,000
The following adjustments are determined:
• The recoverable amount of the accounts receivable is P116,400
should be recognized.
• Prepaid assets of P3,600 and accrued liabilities of P4,000
should be recognized.
LAICPA - Adapted)
1. Cacquires half of B's interest in the partnership for P100,000,
How much is the çapital balance of B after the admission of C
a. 47,000
b. 21,500
c. 51,200
d. 182,600
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