On May 1, Rose, and Yana formed a partnership and agreed to share profits and losses 1:3 respectively. Rose contributed a parcel of land with a fair market value of P1,000,000. Yana contributed P3,000,000 cash. On May 1, immediately after formation of partnership, the land was sold for P1,100,000. WHat amount should be recorded in Rose's capital account on formation of the partnership? a. P1,000,000 b. P1,050,000 c. P1,100,000 d. P1,025,000
On May 1, Rose, and Yana formed a partnership and agreed to share profits and losses 1:3 respectively. Rose contributed a parcel of land with a fair market value of P1,000,000. Yana contributed P3,000,000 cash. On May 1, immediately after formation of partnership, the land was sold for P1,100,000. WHat amount should be recorded in Rose's capital account on formation of the partnership? a. P1,000,000 b. P1,050,000 c. P1,100,000 d. P1,025,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On May 1, Rose, and Yana formed a partnership and agreed to share
a. P1,000,000
b. P1,050,000
c. P1,100,000
d. P1,025,000
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