PARTNERSHIP FORMATION 3. On January 1, 20x1, Mr. Angot and Ms. Banglo agreed to forma partnership and share profits and losses in the ratio of 3:7,respectively. Mr. Angot contributed a parcel of land that costhim P10,000. Ms. Banglo contributed P40,000 cash. The landwas sold for P18,000 on January 1, 20x1, immediately afterformation of the partnership. How much is the capital balanceof Mr. Angot?с. 29,000d. 40,000a. 10,000b. 18,000Use the following information for the next two questions:Mr. A and Ms. B formed a partnership and agreed to divide theinitial capital equally even though Mr. A contributed P100,000 andMs. B contributed P84,000 in identifiable assets.(AICPA)

This question concern with the concept of partnership. When any partnership is formed between the…

Answered: On January 1, 20x1, Mr. Angot and Ms.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

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)

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions