Partners Ala, Gerald, and Mike share profits and losses 5:3:2, respectively, and their balance sheet on October 31, 2005 follows: Cash P 240,000 Accounts payable 600,000 Other assets 2,160,000 Ala, capital 444,000 Gerald, capital 780,000 Mike, capital 576,000 2,400,000 2,400,000 The assets & liabilities are recorded at their current fair value. Gerry is to be admitted as a new partner w/ a 1/5 interest in capital & earnings. Ala was credited a bonus of P15,000. How much should Gerry contribute? a. 487,500 b. 456,000 c. 450,000 d. 480,000

Partners Ala, Gerald, and Mike share profits and losses 5:3:2, respectively, and their balance sheet on October 31, 2005 follows: Cash P 240,000 Accounts payable 600,000 Other assets 2,160,000 Ala, capital 444,000 Gerald, capital 780,000 Mike, capital 576,000 2,400,000 2,400,000 The assets & liabilities are recorded at their current fair value. Gerry is to be admitted as a new partner w/ a 1/5 interest in capital & earnings. Ala was credited a bonus of P15,000. How much should Gerry contribute? a. 487,500 b. 456,000 c. 450,000 d. 480,000

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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