Chow and King are partners who share profits and losses in a ratio of 4:3, respectively. They have the following capital balances on Ooctober 31, 2021: Chow, Capital King, Capital P300,000 P 550,000 The partners agreed to admit Arthur to the Partnership. Arthur paid Chow P200,000 for 40% c his interest. What is the capital balance of Partner Arthur after admission?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%

What are the answers on questions 1,2,3 and 4? 

3.
The capital accounts of the Manta and Monte partnership on Nov. 30, 2021 were:
Manta, Capital (75% profit percentage)
Monte, Capital (25% profit percentage)
Total Capital
P290,000
180,000
P470,000
On Oct. 1, Gwargala was admitted to a 25% interest in the partnership when he purchased 25%
of each existing partner's capital for P200,000, paid directly to Manta and Monte.
Manta P 290,000, Monte P 180,000 Gwargala
A
P200,000
Manta P 217,500, Monte P 135,000 Gwargala
В
P117,500
Manta P 217,500, Monte P 135,000 Gwargala
P200,000
Manta P 290,000, Monte P 180,000 Gwargala
D)
P117,500
4
4 chow and King are partners who share profits and losses in a ratio of 4:3, respectively. They
have the following capital balances on October 31, 2021:
Chow, Capital
King, Capital
P 550,000
P300,000
The partners agreed to admit Arthur to the Partnership. Arthur Invested P300,000 for 2/5 of his
interest in the partnership. What is the capital balance of Partner Arthur after admission?
A) 460,000
B)
400,000
c) 300,000
D
350,000
Transcribed Image Text:3. The capital accounts of the Manta and Monte partnership on Nov. 30, 2021 were: Manta, Capital (75% profit percentage) Monte, Capital (25% profit percentage) Total Capital P290,000 180,000 P470,000 On Oct. 1, Gwargala was admitted to a 25% interest in the partnership when he purchased 25% of each existing partner's capital for P200,000, paid directly to Manta and Monte. Manta P 290,000, Monte P 180,000 Gwargala A P200,000 Manta P 217,500, Monte P 135,000 Gwargala В P117,500 Manta P 217,500, Monte P 135,000 Gwargala P200,000 Manta P 290,000, Monte P 180,000 Gwargala D) P117,500 4 4 chow and King are partners who share profits and losses in a ratio of 4:3, respectively. They have the following capital balances on October 31, 2021: Chow, Capital King, Capital P 550,000 P300,000 The partners agreed to admit Arthur to the Partnership. Arthur Invested P300,000 for 2/5 of his interest in the partnership. What is the capital balance of Partner Arthur after admission? A) 460,000 B) 400,000 c) 300,000 D 350,000
1
Chow and King are partners who share profits and losses in a ratio of 4:3, respectively. They
have the following capital balances on October 31, 2021:
Chow, Capital
King, Capital
P 550,000
P300,000
The partners agreed to admit Arthur to the Partnership. Arthur paid Chow P200,000 for 40% of
his interest. What is the capital balance of Partner Arthur after admission?
A) 120,000
В
150,000
с) 300,000
D 200,000
Z In the ABC Partnership, A's capital is P40,000,B's capital is
P70,000, and C's Capital is P20,000. They share income in a
4:1:1 ratio, respectively. C is retiring from the partnership.
What is the journal entry to record the withdrawal if he is
paidP40,000?
A C, capital (debit) 40,000 Cash (credit) 40,000
C, capital (debit) 20,000 A, capital (debit)16,000 B,
В
capital (debit) 4,000 Cash (credit) 40,000
C, capital (debit) 20,000 A, capital (debit)4,000 B,
C
capital (debit) 16,000 Cash (credit) 40,000
Cash, capital (debit) 40,000 A, capital (debit)4,000
D
B, capital (debit) 16,000 C, capital (credit) 40,000
Transcribed Image Text:1 Chow and King are partners who share profits and losses in a ratio of 4:3, respectively. They have the following capital balances on October 31, 2021: Chow, Capital King, Capital P 550,000 P300,000 The partners agreed to admit Arthur to the Partnership. Arthur paid Chow P200,000 for 40% of his interest. What is the capital balance of Partner Arthur after admission? A) 120,000 В 150,000 с) 300,000 D 200,000 Z In the ABC Partnership, A's capital is P40,000,B's capital is P70,000, and C's Capital is P20,000. They share income in a 4:1:1 ratio, respectively. C is retiring from the partnership. What is the journal entry to record the withdrawal if he is paidP40,000? A C, capital (debit) 40,000 Cash (credit) 40,000 C, capital (debit) 20,000 A, capital (debit)16,000 B, В capital (debit) 4,000 Cash (credit) 40,000 C, capital (debit) 20,000 A, capital (debit)4,000 B, C capital (debit) 16,000 Cash (credit) 40,000 Cash, capital (debit) 40,000 A, capital (debit)4,000 D B, capital (debit) 16,000 C, capital (credit) 40,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting Quality
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
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