DEF partners, whose capital balances totaled P 400,000 decided to admit G who invested P 120,000 cash for a 20% interest. The partners agree to revalue the assets. This will result to Asset revaluation for G of P 20,000 Asset revaluation of P80,000 for D, E, and F agreement is invalid O Asset impairment of P20,000 for D, E, and F

DEF partners, whose capital balances totaled P 400,000 decided to admit G who invested P 120,000 cash for a 20% interest. The partners agree to revalue the assets. This will result to Asset revaluation for G of P 20,000 Asset revaluation of P80,000 for D, E, and F agreement is invalid O Asset impairment of P20,000 for D, E, and F

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 14E

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The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
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