Refer to Problem 1: If Pete pays P4,200 for 4 of the interest of Tan, and the deficiency in the consideration due to overstatement of partnership assets, what entries must be made on the partnership books incidental to the admission of Pete? Determine the resulting capital balances of the partners.

Refer to Problem 1: If Pete pays P4,200 for 4 of the interest of Tan, and the deficiency in the consideration due to overstatement of partnership assets, what entries must be made on the partnership books incidental to the admission of Pete? Determine the resulting capital balances of the partners.

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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Question

. Pete is joining the partnership of Rey, Tan and Val whose capital balances and profit and loss
sharing ratio are as follows:
Capital Balance
Rey
Tan
P/L Ratio
P15,000
20,000
20%
40
Val
18,000
40
Refer to Problem 1:
If Pete pays P4,200 for 4 of the interest of Tan, and the deficiency in the consideration due to
overstatement of partnership assets, what entries must be made on the partnership books
incidental to the admission of Pete? Determine the resulting capital balances of the partners.

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