C was admitted to the partnership when he invested P60,000 cash for a 20% interest in the partnership.Immediately prior to C's admission, the carrying amounts and fair values of the assets and liabilities of thepartnership are as follows:Carrying amount Fair value20,000320,00010,00020,000340,000CashEquipmentAccounts payableProvision for warranty obligationA, Capital (40%)B, Capital (60%)10,000130,000220,0005,000N/AN/AHow much is the capital balance of B after the admission of C?

All amounts are in P. Given, C's Capital = P 60,000

C was admitted to the partnership when he invested P60,000 cash for a 20% interest in the partnership. Immediately prior to C's admission, the carrying amounts and fair values of the assets and liabilities of the partnership are as follows: Cash Equipment Accounts payable Provision for warranty obligation A, Capital (40%) Capital (60%) Carrying amount Fair value 20,000 320,000 10,000 5,000 N/A N/A 20,000 340,000 10,000 130,000 220,000 How much is the capital balance of B after the admission of C?

C was admitted to the partnership when he invested P60,000 cash for a 20% interest in the partnership. Immediately prior to C's admission, the carrying amounts and fair values of the assets and liabilities of the partnership are as follows: Cash Equipment Accounts payable Provision for warranty obligation A, Capital (40%) Capital (60%) Carrying amount Fair value 20,000 320,000 10,000 5,000 N/A N/A 20,000 340,000 10,000 130,000 220,000 How much is the capital balance of B after the admission of C?

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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