On May 1, 2018, Jose and Pedro formed a partnership and agreed to share profits and losses in the ratio of 3:7, respectively. Jose contributed a computer that cost himP50,000. Pedro contributed P200,000 cash. The computer was sold for P55,000 on May 1, 2018 immediately after the formation of the partnership. What amount should be recorded in Jose’s capital account on formation of the partnership? a. P55,000 b. P51,500 c. P60,000 d. P50,000
On May 1, 2018, Jose and Pedro formed a partnership and agreed to share profits and losses in the ratio of 3:7, respectively. Jose contributed a computer that cost himP50,000. Pedro contributed P200,000 cash. The computer was sold for P55,000 on May 1, 2018 immediately after the formation of the partnership. What amount should be recorded in Jose’s capital account on formation of the partnership? a. P55,000 b. P51,500 c. P60,000 d. P50,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On May 1, 2018, Jose and Pedro formed a
in the ratio of 3:7, respectively. Jose contributed a computer that cost himP50,000. Pedro
contributed P200,000 cash. The computer was sold for P55,000 on May 1, 2018
immediately after the formation of the partnership. What amount should be recorded in
Jose’s capital account on formation of the partnership?
a. P55,000 b. P51,500 c. P60,000 d. P50,000
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