The following condensed balance sheet is presented for the partnership of Nick, Pick, and Nick, who share profits and losses in the ratio 4:3:3, respectively: P 45,000 P 105,000 Cash Accounts payable Other assets 415,000 Rick, loan 15,000 Nick, loan 10,000 Nick, capital 155,000 Pick, capital 100,000 Rick, capital 95,000 P 470,000 P 470,000 Assume that the assets and liabilities are fairly valued on the balance sheet and that the partnership decides to admit Tick as a partner, with a 20% interest. No goodwill or bonus is to be recorded. How much should Tick contribute in cash or other assets? Assume that instead of admitting a new partner, the partners decide to liquidate the partnership. If the other assets are sold for P350,000, how much cash should be distributed to Nick?

The following condensed balance sheet is presented for the partnership of Nick, Pick, and Nick, who share profits and losses in the ratio 4:3:3, respectively: P 45,000 P 105,000 Cash Accounts payable Other assets 415,000 Rick, loan 15,000 Nick, loan 10,000 Nick, capital 155,000 Pick, capital 100,000 Rick, capital 95,000 P 470,000 P 470,000 Assume that the assets and liabilities are fairly valued on the balance sheet and that the partnership decides to admit Tick as a partner, with a 20% interest. No goodwill or bonus is to be recorded. How much should Tick contribute in cash or other assets? Assume that instead of admitting a new partner, the partners decide to liquidate the partnership. If the other assets are sold for P350,000, how much cash should be distributed to Nick?

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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