At December 31, Rod and Sol are partners with capital balances of P40,000 and P20,000, and they share profits and losses in the ratio of 2:1, respectively. On this date, Pete invests P17,000 cash for a one-fifth interest in the capital and profit of the new partnership. How much should be credited to Pete's capital account on December 31? * O P12,000 O P15,000 O P15,400 O P17,000
At December 31, Rod and Sol are partners with capital balances of P40,000 and P20,000, and they share profits and losses in the ratio of 2:1, respectively. On this date, Pete invests P17,000 cash for a one-fifth interest in the capital and profit of the new partnership. How much should be credited to Pete's capital account on December 31? * O P12,000 O P15,000 O P15,400 O P17,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need correct answer and correct computation. Thank you!
Transcribed Image Text:TNT a O
ON 68%
D 11:15
At December 31, Rod and Sol are
partners with capital balances of
P40,000 and P20,000, and they
share profits and losses in the ratio of
2:1, respectively. On this date, Pete
invests P17,000 cash for a one-fifth
interest in the capital and profit of
the new partnership. How much
should be credited to Pete's capital
account on December 31? *
P12,000
P15,000
P15,400
O P17,000
June and July are partners who share
profits and losses equally. The capital
accounts of June and July have
tripled in five years and at present
have the following balances: June
P90,000, and July P60,000.August
desires to join the firm and offered to
invest P50,000 for a one-third
interest. June and July declined his
Transcribed Image Text:TNT a O
ON 68% 11:16
June and July are partners who share
profits and losses equally. The capital
accounts of June and July have
tripled in five years and at present
have the following balances: June
P90,000, and July P60,000.August
desires to join the firm and offered to
invest P50,000 for a one-third
interest. June and July declined his
offer but they extended a counter-
offer to August of P70,000 for a one-
fourth interest in the capital and
profits and losses of the firm. If
August accepted the offer, what
should be the balances in the capital
accounts of June and July after
August's admission, respectively. *
P100,000; P70,000
P120,000; P90,000
P97,500; P67,500
O P90,000; P60,000
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