Upon admission of Apple, which of the following statements is FALSE? The capital balance of Melvyn amount to P178,875 The capital account of Lorely will be credited in the amount of P3,375. The total agreed capital of the old partners is P27,000 greater than the total contributed capital of the old partners. Cash will be debited in the amount of P61,200
Upon admission of Apple, which of the following statements is FALSE? The capital balance of Melvyn amount to P178,875 The capital account of Lorely will be credited in the amount of P3,375. The total agreed capital of the old partners is P27,000 greater than the total contributed capital of the old partners. Cash will be debited in the amount of P61,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Alice, Melvyn and Lorely are partners with capital balances of P100,800; P162,000 and P57,000 respectively, sharing profits and losses in the ratio of 2:5:1. Apple is admitted as a new partner bringing with her expertise and is to invest cash for a 15% interest in the partnership considering the transfer of capital from her of P27,000 upon her admission. Upon admission of Apple, which of the following statements is FALSE?
- The capital balance of Melvyn amount to P178,875
- The capital account of Lorely will be credited in the amount of P3,375.
- The total agreed capital of the old partners is P27,000 greater than the total contributed capital of the old partners.
- Cash will be debited in the amount of P61,200
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