On December 31,2020, the Statement of Financial Position of BEA Partnership shows the following data together with the profit or loss sharing ratio: Cash Other assets 1,500,000 P1,000,000 500,000 300,000 200,000 P500,000 Total liabilities Brazil, Capital (10%) Europe, Capital (30%) Argentina, Capital (60%) On January 1, 2021, Russia will be admitted to the new partnership named BEAR Partnership by investing P400,000 for a 30% capital interest in the new partnership which has total agreed capitalization of P2,000,000. 5. What is the new capital balance of Argentina upon admission of Russia in the BEAR Partnership? C. 560,000 D 840 000 A 320,000 R 440 000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On December 31, 2020, the Statement of Financial Position of BEA Partnership shows the following data together
with the profit or loss sharing ratio:
Cash
P500,000
1,500,000
Total liabilities
P1,000,000
500,000
300,000
200,000
Other assets
Brazil, Capital (10%)
Europe, Capital (30%)
Argentina, Capital (60%)
On January 1, 2021, Russia will be admitted to the new partnership named BEAR Partnership by investing
P400,000 for a 30% capital interest in the new partnership which has total agreed capitalization of P2,000,000.
5. What is the new capital balance of Argentina upon admission of Russia in the BEAR Partnership?
A. 320,000
B. 440,000
C. 560,000
D. 840,000
Transcribed Image Text:On December 31, 2020, the Statement of Financial Position of BEA Partnership shows the following data together with the profit or loss sharing ratio: Cash P500,000 1,500,000 Total liabilities P1,000,000 500,000 300,000 200,000 Other assets Brazil, Capital (10%) Europe, Capital (30%) Argentina, Capital (60%) On January 1, 2021, Russia will be admitted to the new partnership named BEAR Partnership by investing P400,000 for a 30% capital interest in the new partnership which has total agreed capitalization of P2,000,000. 5. What is the new capital balance of Argentina upon admission of Russia in the BEAR Partnership? A. 320,000 B. 440,000 C. 560,000 D. 840,000
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