Problem 41: The following condensed balance sheet is presented for thepartnership of A and B, who share profits and losses in the ratio of 6:4respectively:CashNon-cash assetsB, loan135,0001,875,00090,0002,100,000Accounts payableА, сapitalВ, сapital360,0001,044,000696,0002,100,000All assets and liabilities are fairly valued, A and B decided to admit C as a newpartner with 20% interest. No bonus or revaluation is recorded. What amountshould C contributes in the firm?а. 330,000b. 348,000c. 420,000d. 435,000Problem 42: The following capital accounts pertain to A and B:P&L ratioCapital200,000240,000A40%в60%C is admitted by purchase of ½ interest of both A and B, for P240,000, theP240,000 is divided between A and B, respectively:а. 96,000; 144,000b. 108,000; 132,000с. 109,090; 130,910d. 120,000; 120,000

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Description: Problem 41: The following condensed balance sheet is presented for thepartnership of A and B, who share profits and losses in the ratio of 6:4respectively:CashNon-cash assetsB, loan135,0001,875,00090,0002,100,000Accounts payableА, сapitalВ, сapital3

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Problem 41: The following condensed balance partnership of A and B, who share profits and losses in the ratio of 6:4 respectively: the Cash Non-cash assets B, loan 135,000 1,875,000 90,000 2,100,000 Accounts payable A, capital В, саpital 360,000 1,044,000 696,000 2,100,000 All assets and liabilities are fairly valued, A and B decided to admit C as a neu

Problem 41: The following condensed balance partnership of A and B, who share profits and losses in the ratio of 6:4 respectively: the Cash Non-cash assets B, loan 135,000 1,875,000 90,000 2,100,000 Accounts payable A, capital В, саpital 360,000 1,044,000 696,000 2,100,000 All assets and liabilities are fairly valued, A and B decided to admit C as a neu

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Problem 41: The following condensed balance sheet is presented for the
partnership of A and B, who share profits and losses in the ratio of 6:4
respectively:
Cash
Non-cash assets
B, loan
135,000
1,875,000
90,000
2,100,000
Accounts payable
А, сapital
В, сapital
360,000
1,044,000
696,000
2,100,000
All assets and liabilities are fairly valued, A and B decided to admit C as a new
partner with 20% interest. No bonus or revaluation is recorded. What amount
should C contributes in the firm?
а. 330,000
b. 348,000
c. 420,000
d. 435,000
Problem 42: The following capital accounts pertain to A and B:
P&L ratio
Capital
200,000
240,000
A
40%
в
60%
C is admitted by purchase of ½ interest of both A and B, for P240,000, the
P240,000 is divided between A and B, respectively:
а. 96,000; 144,000
b. 108,000; 132,000
с. 109,090; 130,910
d. 120,000; 120,000

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