Homework Help is Here – Start Your Trial Now!
Business
Accounting
C invests P71,250 cash for a 20% interest in the net assets and profits of the partnership. C's capital account is credited for the fair value of the 20% interest he acquired. How much is the capital balance of B after the admission of C? a. 102,400 b. 94,000 c. 86,400 d. 120,400

C invests P71,250 cash for a 20% interest in the net assets and profits of the partnership. C's capital account is credited for the fair value of the 20% interest he acquired. How much is the capital balance of B after the admission of C? a. 102,400 b. 94,000 c. 86,400 d. 120,400

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

2. 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.

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 (60%, interest in PA) 170,000 180,000 B, Capital (40% interest in PL) 94,000 326,000 Inventory Total assets 326,000 Total liabilities and equity 2. Cinvests P71,250 cash for a 20% interest in the net assets and profits of the partnership. C's capital account is credited for the fair value of the 20% interest he acquired. How much is the capital balance of B after the admission of C? a. 102,400 b. 94,000 c. 86,400 d. 120,400
Transcribed Image Text: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 (60%, interest in PA) 170,000 180,000 B, Capital (40% interest in PL) 94,000 326,000 Inventory Total assets 326,000 Total liabilities and equity 2. Cinvests P71,250 cash for a 20% interest in the net assets and profits of the partnership. C's capital account is credited for the fair value of the 20% interest he acquired. How much is the capital balance of B after the admission of C? a. 102,400 b. 94,000 c. 86,400 d. 120,400
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS