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On January 1, 20x1, Mr. Angot and Ms. Banglo agreed to form a partnership and share profits and losses in the ratio of 3:7, respectively. Mr. Angot contributed a parcel of land that cost him P10,000. Ms. Banglo contributed P40,000 cash. The land was sold for P18,000 on January 1, 20x1, immediately after formation of the partnership. How much is the capital balance of Mr. Angot? а. 10,000 b. 18,000 с. 29,000 d. 40,000

On January 1, 20x1, Mr. Angot and Ms. Banglo agreed to form a partnership and share profits and losses in the ratio of 3:7, respectively. Mr. Angot contributed a parcel of land that cost him P10,000. Ms. Banglo contributed P40,000 cash. The land was sold for P18,000 on January 1, 20x1, immediately after formation of the partnership. How much is the capital balance of Mr. Angot? а. 10,000 b. 18,000 с. 29,000 d. 40,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PARTNERSHIP FORMATION
3. On January 1, 20x1, Mr. Angot and Ms. Banglo agreed to form a partnership and share profits and losses in the ratio of 3:7, respectively. Mr. Angot contributed a parcel of land that cost him P10,000. Ms. Banglo contributed P40,000 cash. The land was sold for P18,000 on January 1, 20x1, immediately after formation of the partnership. How much is the capital balance of Mr. Angot? с. 29,000 d. 40,000 a. 10,000 b. 18,000 Use the following information for the next two questions: Mr. A and Ms. B formed a partnership and agreed to divide the initial capital equally even though Mr. A contributed P100,000 and Ms. B contributed P84,000 in identifiable assets. (AICPA)
Transcribed Image Text:3. On January 1, 20x1, Mr. Angot and Ms. Banglo agreed to form a partnership and share profits and losses in the ratio of 3:7, respectively. Mr. Angot contributed a parcel of land that cost him P10,000. Ms. Banglo contributed P40,000 cash. The land was sold for P18,000 on January 1, 20x1, immediately after formation of the partnership. How much is the capital balance of Mr. Angot? с. 29,000 d. 40,000 a. 10,000 b. 18,000 Use the following information for the next two questions: Mr. A and Ms. B formed a partnership and agreed to divide the initial capital equally even though Mr. A contributed P100,000 and Ms. B contributed P84,000 in identifiable assets. (AICPA)
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