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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What are the answers on questions 1,2,3 and 4?
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
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
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