How much is the capital interest of A and B after formation? 400,000 and 675,000. Assuming the partners agree to revalue the assets, so that their capital interest will agree to their profit and loss sharing ratio, which of the following statements is incorrect? The total capital contribution of the partners is P1,125,000.
How much is the capital interest of A and B after formation? 400,000 and 675,000. Assuming the partners agree to revalue the assets, so that their capital interest will agree to their profit and loss sharing ratio, which of the following statements is incorrect? The total capital contribution of the partners is P1,125,000.
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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On January 1, 20x1, A and B formed a partnership the AB partnership. A and B share profits and losses in a 40:60 ratio, respectively. The following are information available on the date of formation:
A |
B |
|
Cash |
100,000 |
25,000 |
Inventory |
300,000 |
|
Land |
500,000 |
|
Building |
300,000 |
|
Accounts payable |
50,000 |
The accounts payable of A will be paid by partner A using his personal assets. The land contributed by B has a mortgage liability of P150,000 which was assumed by the partnership.
- How much is the capital interest of A and B after formation? 400,000 and 675,000.
- Assuming the partners agree to revalue the assets, so that their capital interest will agree to their
profit and loss sharing ratio, which of the following statements is incorrect? The total capital contribution of the partners is P1,125,000.
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