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The capital account to be credited to BJ:

The capital account to be credited to BJ:

FINANCIAL ACCOUNTING
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 January 31, 20x4, partners of VIP, LLP, had the following loan and capital account balances (after closing entries for January): Loan Receivable from V Loan Payable to P V, capital P40,000 dr 120,000 cr 60,000 dr 240,000 cr 140,000 cr I, capital P, capital The partnership's income sharing ratio was V, 50%; I, 20%; P, 30%. On January 31, 20x4, BJ was admitted to the partnership for a 20% interest in total capital of the partnership in exchange for an investment of P80,000 cash. Prior to BJ's admission, the existing partners agreed to increase the carrying amount of the partnership's inventories to current fair value, a P120,000 increase. The capital account to be credited to BJ:
Transcribed Image Text:On January 31, 20x4, partners of VIP, LLP, had the following loan and capital account balances (after closing entries for January): Loan Receivable from V Loan Payable to P V, capital P40,000 dr 120,000 cr 60,000 dr 240,000 cr 140,000 cr I, capital P, capital The partnership's income sharing ratio was V, 50%; I, 20%; P, 30%. On January 31, 20x4, BJ was admitted to the partnership for a 20% interest in total capital of the partnership in exchange for an investment of P80,000 cash. Prior to BJ's admission, the existing partners agreed to increase the carrying amount of the partnership's inventories to current fair value, a P120,000 increase. The capital account to be credited to BJ:
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