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On January 31, 20x4, partners of Lon, Mac & Nan Partnership, had the following loan and capital account balances (after closing entries for January): Loan receivable from Lon 000 Dr P20, Loan payable to Nan 60, .... 000 Cr Lon, capital 30,000 Dr Мacс, сapital 120,000 Cr Nan, capital 70,000 Cr

On January 31, 20x4, partners of Lon, Mac & Nan Partnership, had the following loan and capital account balances (after closing entries for January): Loan receivable from Lon 000 Dr P20, Loan payable to Nan 60, .... 000 Cr Lon, capital 30,000 Dr Мacс, сapital 120,000 Cr Nan, capital 70,000 Cr

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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On January 31, 20x4, partners of Lon, Mac & Nan Partnership, had the following loan and capital account balances (after closing entries for January): Loan receivable from Lon P20, 000 Dr Loan payable to Nan 60, 0o 0 Cr Lon, capital 30,000 Dr Mac, capital 120,000 Cr Nan, capital 70,000 Cr
Transcribed Image Text:On January 31, 20x4, partners of Lon, Mac & Nan Partnership, had the following loan and capital account balances (after closing entries for January): Loan receivable from Lon P20, 000 Dr Loan payable to Nan 60, 0o 0 Cr Lon, capital 30,000 Dr Mac, capital 120,000 Cr Nan, capital 70,000 Cr
The partnership's income sharing ratio was Lon, 50, Mac, 20%. And Nan, 30%. On January 31, 20x4, Ole was admitted to the partnership for a 20% interest in total capital of the partnership in exchange for an investment of P40,000 cash. Prior to Ole's admission, the existing partners agreed to increase the carrying amount of the partnership's inventories to current fair value, a P60,000 increase. The capital account to be credited to Ole: Previous Next
Transcribed Image Text:The partnership's income sharing ratio was Lon, 50, Mac, 20%. And Nan, 30%. On January 31, 20x4, Ole was admitted to the partnership for a 20% interest in total capital of the partnership in exchange for an investment of P40,000 cash. Prior to Ole's admission, the existing partners agreed to increase the carrying amount of the partnership's inventories to current fair value, a P60,000 increase. The capital account to be credited to Ole: Previous Next
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