On June 30, 2021, the statement of financial position of Meycauyan Marketing, a partnership, is summarized as follows: Assets P600,000 Orosco, Capital De Guzman, Capital 360,000 240,000 Orozco and De Guzman share profit and losses at a 6:4 ratio, respectively. They agreed to take in Gener Castillo as a new partner, who purchased 1/8 interest of Orosco and De Guzman for P100,000. What is the amount of Gener Castillo's capital to be taken up in the partnership books?

On June 30, 2021, the statement of financial position of Meycauyan Marketing, a partnership, is summarized as follows: Assets P600,000 Orosco, Capital De Guzman, Capital 360,000 240,000 Orozco and De Guzman share profit and losses at a 6:4 ratio, respectively. They agreed to take in Gener Castillo as a new partner, who purchased 1/8 interest of Orosco and De Guzman for P100,000. What is the amount of Gener Castillo's capital to be taken up in the partnership books?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 2BD

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Question

What is the answer to this question?

On June 30, 2021, the statement of financial position of Meycauyan Marketing, a partnership, is
summarized as follows:
Assets
P600,000
Orosco, Capital
De Guzman, Capital
360,000
240,000
Orozco and De Guzman share profit and losses at a 6:4 ratio, respectively. They agreed to take
in Gener Castillo as a new partner, who purchased 1/8 interest of Orosco and De Guzman for
P100,000. What is the amount of Gener Castillo's capital to be taken up in the partnership
books?
A
75,000
В
50,000
c) 100,000
D
125,000

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