S and C are partners with capital balances of P600,000 and P200,000, respectively. Profits and losses are divided in the ratio of 60:40. S and C decided to form a new partnership with L, who invested land valued at P150,000 for a 20% capital interest in the new partnership. L's cost of the land was P120,000. The partnership used the bonus method to record the admission of L into the partnership. L's capital account should be credited for A) Php 160,000 Php 120,000 Php 150,000 Php 190,000

S and C are partners with capital balances of P600,000 and P200,000, respectively. Profits and losses are divided in the ratio of 60:40. S and C decided to form a new partnership with L, who invested land valued at P150,000 for a 20% capital interest in the new partnership. L's cost of the land was P120,000. The partnership used the bonus method to record the admission of L into the partnership. L's capital account should be credited for A) Php 160,000 Php 120,000 Php 150,000 Php 190,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...

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