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Alberto and Gregorio share profits and losses 30% and 70%, respectively. On June 1, 20xx the balance in Gregorio's capital account should be a. P 70,000. b. P 175,000. c. P 225,000. d. P 275,000. e. None of the above

Alberto and Gregorio share profits and losses 30% and 70%, respectively. On June 1, 20xx the balance in Gregorio's capital account should be a. P 70,000. b. P 175,000. c. P 225,000. d. P 275,000. e. None of the above

FINANCIAL ACCOUNTING
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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1. On June 1, 20xx, Alberto and Gregorio formed a partnership with each contributing the following assets: Cash Alberto Gregorio P 25,000 P 40,000 Equipments, net Building 20,000 50,000 150,000 Furniture and Fixtures 10,000 The building is subject to mortgage loan of P50,000, which is to be assumed by the partnership. The agreement provides that Alberto and Gregorio share profits and losses 30% and 70%, respectively. On June 1, 20xx the balance in Gregorio's capital account should be a. P 70,000. b. P 175,000. c. P 225,000. the d. P 275,000. e. None of the above atic 2. The same information in the previous number except that the mortgage loan is not assumed by the partnership. On June 1, 20xx the balance in Gregorio's capital account should be a. P 70,000. b. P 175,000. c. P 225,000. d. P 275,000. e. None of the above 3. The same information in number 1, except that Alberto has to make additional cash investment so that the ratio of their capital balances shall be 30: 70 respectively. The additional cash investment of Alberto on June 1, 20xx should ashi be a. P 5,000. b. P 10,000. c. P 15,000. d. P 20,000.
Transcribed Image Text:1. On June 1, 20xx, Alberto and Gregorio formed a partnership with each contributing the following assets: Cash Alberto Gregorio P 25,000 P 40,000 Equipments, net Building 20,000 50,000 150,000 Furniture and Fixtures 10,000 The building is subject to mortgage loan of P50,000, which is to be assumed by the partnership. The agreement provides that Alberto and Gregorio share profits and losses 30% and 70%, respectively. On June 1, 20xx the balance in Gregorio's capital account should be a. P 70,000. b. P 175,000. c. P 225,000. the d. P 275,000. e. None of the above atic 2. The same information in the previous number except that the mortgage loan is not assumed by the partnership. On June 1, 20xx the balance in Gregorio's capital account should be a. P 70,000. b. P 175,000. c. P 225,000. d. P 275,000. e. None of the above 3. The same information in number 1, except that Alberto has to make additional cash investment so that the ratio of their capital balances shall be 30: 70 respectively. The additional cash investment of Alberto on June 1, 20xx should ashi be a. P 5,000. b. P 10,000. c. P 15,000. d. P 20,000.
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