Aika and Nicole's capital is P600,000 and P480,000. Profit and share ratio is 7:3. Princess directly purchased a 1/3 interest by paying Aika P195,000 and Nicole P225,000. Their Land Account is increased by P180,000 before Princess is accepted. 10. What is the capital of Aika after admitting Princess? a. 300,000 b. 356,000 c. 420,000 d. 484,000 11. What is the capital of Nicole after admitting Princess? a. 300,000 b. 356,000 c. 420,000 d. 484,000 12. What is the capital of Princess after admission? a. 300,000 b. 356,000 c. 420,000 d. 484,000
Aika and Nicole's capital is P600,000 and P480,000. Profit and share ratio is 7:3. Princess directly purchased a 1/3 interest by paying Aika P195,000 and Nicole P225,000. Their Land Account is increased by P180,000 before Princess is accepted. 10. What is the capital of Aika after admitting Princess? a. 300,000 b. 356,000 c. 420,000 d. 484,000 11. What is the capital of Nicole after admitting Princess? a. 300,000 b. 356,000 c. 420,000 d. 484,000 12. What is the capital of Princess after admission? a. 300,000 b. 356,000 c. 420,000 d. 484,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:ADMISSION - PURCHASE OF INTEREST
PROBLEM D
Aika and Nicole's capital is P600,000 and P480,000. Profit and share ratio is 7:3. Princess directly purchased a 1/3 interest
by paying Aika P195,000 and Nicole P225,000. Their Land Account is increased by P180,000 before Princess is accepted.
10. What is the capital of Aika after admitting Princess?
a. 300,000
b. 356,000
c. 420,000
d. 484,000
11. What is the capital of Nicole after admitting Princess?
a. 300,000
b. 356,000
c. 420,000
d. 484,000
12. What is the capital of Princess after admission?
PROBLEM E
a. 300,000
b. 356,000
c. 420,000
d. 484,000
Mark, Dave and Jim are partners with capital balances of P448,000, P1,560,000, and P680,000, sharing profits and losses
of 6:4:2. Jamie is admitted as a new partner bringing with him expertise and is to invest cash for 25% interest in the
partnership, which includes a credit of P420,000 bonus upon his admission.
13. How much cash should Jamie contribute?
a. 336,000
b. 420,000
c. 756,000
d. 3,024,000
14. How much should be credited to Jamie's capital?
a.
336,000
b. 420,000
c. 756,000
d. 3,024,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education