On December 1, 2020, Louie and Kaye Ann formed a partnership, agreeing to share for profits and losses in the ratio of 2:3, respectively. Louie invested a parcel of land that cost him P25,000. Kaye Ann invested P30,000 cash. The land was sold for P50,000 on the same date, three hours after formation of the partnership. How much should be the capital balance of Louie right after formation? a. P25,000 c. P60,000 b. 30,000 d. 50,000
On December 1, 2020, Louie and Kaye Ann formed a partnership, agreeing to share for profits and losses in the ratio of 2:3, respectively. Louie invested a parcel of land that cost him P25,000. Kaye Ann invested P30,000 cash. The land was sold for P50,000 on the same date, three hours after formation of the partnership. How much should be the capital balance of Louie right after formation? a. P25,000 c. P60,000 b. 30,000 d. 50,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On December 1, 2020, Louie and Kaye Ann formed a partnership, agreeing to share for
and losses
P25,000. Kaye Ann invested P30,000 cash. The land was sold for P50,000 on the same date,
three hours after formation of the partnership. How much should be the capital balance of
Louie right after formation?
a. P25,000 c. P60,000
b. 30,000 d. 50,000
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