Use the data below for the following questions. Partners A and B had the following profit-sharing percentages and capital balances: A (40%) ₱300,000 and B (60%) ₱500,000.   C was admitted to the partnership when he purchased half of A’s capital interest for ₱200,000. How much is A’s capital balance after the admission of C?   A. 125,000 B. 150,000 C. 200,000 D. 100,000   C was admitted to the partnership when he purchased 20% of A’s and B’s capital interests for ₱200,000. If the book value method was used to record C’s admission, how much would be the capital balance of A after C’s admission?     A. 180,000 B. 280,000 C, 240,000 D. 220,000   C was admitted to the partnership when he invested ₱150,000 cash for a 20% interest in the partnership. The partnership’s net assets are fairly valued on C’s admission date. The partners used the bonus method to record C’s admission. How much is the capital balance of A after the admission of C?     A. 296,000 B. 288,000 C. 284,000 D. 304,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Use the data below for the following questions. Partners A and B had the following profit-sharing percentages and capital balances: A (40%) ₱300,000 and B (60%) ₱500,000.
 
C was admitted to the partnership when he purchased half of A’s capital interest for ₱200,000. How much is A’s capital balance after the admission of C?
 
A. 125,000
B. 150,000
C. 200,000
D. 100,000
 
C was admitted to the partnership when he purchased 20% of A’s and B’s capital interests for ₱200,000. If the book value method was used to record C’s admission, how much would be the capital balance of A after C’s admission?
 
 
A. 180,000
B. 280,000
C, 240,000
D. 220,000
 
C was admitted to the partnership when he invested ₱150,000 cash for a 20% interest in the partnership. The partnership’s net assets are fairly valued on C’s admission date. The partners used the bonus method to record C’s admission. How much is the capital balance of A after the admission of C?
 
 
A. 296,000
B. 288,000
C. 284,000
D. 304,000
 
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