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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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
В
Php 120,000
Php 150,000
Php 190,000
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