Bel and May have capital balances of P900,000, and P1,300,000 as of December 31, 2020. Bel and May share 40% and 60% in the profits and losses. The partners believe that the following assets should be adjusted Accounts receivable - (book value)- P240,000; (market value) P200,000 Inventory -(book value)- P400,000, (market value) P450,000 Len is interested in buying 40% interest from anyone of the partner. After recording the adjustments, the revised capital of Bel is Select the correct response: P904,000 P910,000 P900,000 P906,000
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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