Carlos and her very close associate Liggayu formed a partnership on Jan. 1, 2020 with Carlos contributing P16,000 cash while Liggayu contributing equipment with a book value of P6,400 and a fair value of P4,800 and inventory items with a book value of P2,400 and a fair value of P3,200. During 2020, Liggayu made additional investments of P1,600 on April 1 and P1,600 on June 1, and on Sept. 1, he withdrew P4,000. Carlos had no additional investments or withdrawals during the year. The average capital balance at the end of 2020 for Liggayu is a. P7,200. b. P8,000. C. P8,800. d. P9,600.
Carlos and her very close associate Liggayu formed a partnership on Jan. 1, 2020 with Carlos contributing P16,000 cash while Liggayu contributing equipment with a book value of P6,400 and a fair value of P4,800 and inventory items with a book value of P2,400 and a fair value of P3,200. During 2020, Liggayu made additional investments of P1,600 on April 1 and P1,600 on June 1, and on Sept. 1, he withdrew P4,000. Carlos had no additional investments or withdrawals during the year. The average capital balance at the end of 2020 for Liggayu is a. P7,200. b. P8,000. C. P8,800. d. P9,600.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:19. Carlos and her very close associate Liggayu formed a partnership on Jan. 1, 2020
with Carlos contributing P16,000 cash while Liggayu contributing equipment with a
book value of P6,400 and a fair value of P4,800 and inventory items with a book
value of P2,400 and a fair value of P3,200. During 2020, Liggayu made additional
investments of P1,600 on April 1 and P1,600 on June 1, and on Sept. 1, he withdrew
P4,000. Carlos had no additional investments or withdrawals during the year. The
average capital balance at the end of 2020 for Liggayu is
a. P7,200.
b. P8,000.
C. P8,800.
d. P9,600.
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