PP, RR and SS are new CPA’s and are to form a partnership. PP is to contribute cash of P50,000 and his computer originally costing P60,000 but has a second-hand value of P25,000. RR is to contribute cash of P80,000. SS, whose family is selling computers, is to contribute cash of P25,000 and a brand-new computer with a regular selling price of P60,000 but which cost is P50,000. Partners agree to share profits equally. The capital balances upon formation are: PP RR SS a. P 75,000 P80,000 P85,000 b. P110,000 P80,000 P75,000 c. P 80,000 P80,000 P80,000 d. P 83,333 P83,333 P83,334
PP, RR and SS are new CPA’s and are to form a partnership. PP is to contribute cash of P50,000 and his computer originally costing P60,000 but has a second-hand value of P25,000. RR is to contribute cash of P80,000. SS, whose family is selling computers, is to contribute cash of P25,000 and a brand-new computer with a regular selling price of P60,000 but which cost is P50,000. Partners agree to share profits equally. The capital balances upon formation are: PP RR SS a. P 75,000 P80,000 P85,000 b. P110,000 P80,000 P75,000 c. P 80,000 P80,000 P80,000 d. P 83,333 P83,333 P83,334
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PP, RR and SS are new CPA’s and are to form a
P50,000 and his computer originally costing P60,000 but has a second-hand value of
P25,000. RR is to contribute cash of P80,000. SS, whose family is selling computers, is to
contribute cash of P25,000 and a brand-new computer with a regular selling price of P60,000 but which cost is P50,000. Partners agree to share profits equally. The capital
balances upon formation are:
PP RR SS
a. P 75,000 P80,000 P85,000
b. P110,000 P80,000 P75,000
c. P 80,000 P80,000 P80,000
d. P 83,333 P83,333 P83,334
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