Tic and Tac are partners with capital balances of P150,000 and P100,000, respectively. They share profits and losses equally. Toe was admitted as a new partner by purchasing 20% interest in the partnership by paying Tic and Tac a total of P70,000. Prior to Toe’s admission, it was determined that the land is undervalued by P50,000.
Tic and Tac are partners with capital balances of P150,000 and P100,000, respectively. They share profits and losses equally. Toe was admitted as a new partner by purchasing 20% interest in the partnership by paying Tic and Tac a total of P70,000. Prior to Toe’s admission, it was determined that the land is undervalued by P50,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tic and Tac are partners with capital balances of P150,000 and P100,000, respectively. They share
How much was debited from Tac’s capital due to Toe’s purchase of interest in the partnership?
What is Tic’s capital balance immediately after the admission of Toe?
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