On June 30, 2020, the balance sheet of Abella Marketing, a partnership, is summarized as follows: Sundry assetsBallena, capitalCabasal, capital 195,000P487,500292,500Ballena and Cabasal share profit and losses at a 60:40 ratio, respectively.They agreed to take in Dandan as a new partner, who purchases 1/8 interestof Ballena and Cabasal for P81,250. What is the amount of Dandan's capitalto be taken up in the partnership books if book value method is used?a.P40,625b. P60,937.50P81,250С.d. P101,562.50

The partnership comes into existence when two or more persons agree to do the business and further…

Answered: Sundry assets Ballena, capital Cabasal,…

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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On June 30, 2020, the balance sheet of Abella Marketing, a partnership, is summarized as follows:

Sundry assets
Ballena, capital
Cabasal, capital 195,000
P487,500
292,500
Ballena and Cabasal share profit and losses at a 60:40 ratio, respectively.
They agreed to take in Dandan as a new partner, who purchases 1/8 interest
of Ballena and Cabasal for P81,250. What is the amount of Dandan's capital
to be taken up in the partnership books if book value method is used?
a.
P40,625
b. P60,937.50
P81,250
С.
d. P101,562.50

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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