On December 31, 2018, the Statement of Financial Position of ABC Partnership provided the following data with profit or loss ratio of 5:1:4: Current Assets Noncurrent Assets P 500,000 1,100,000 1,200,000 700,000 On January 1, 2019, D is admitted to the partnership by investing P500.000. to the partnership for 10% capital interest. The total agreed capitalization of the new partnership P 1,500,000 2,000,000 Total Liabilities A, Capital B, Capital C, Capital is P 3,000,000.
On December 31, 2018, the Statement of Financial Position of ABC Partnership provided the following data with profit or loss ratio of 5:1:4: Current Assets Noncurrent Assets P 500,000 1,100,000 1,200,000 700,000 On January 1, 2019, D is admitted to the partnership by investing P500.000. to the partnership for 10% capital interest. The total agreed capitalization of the new partnership P 1,500,000 2,000,000 Total Liabilities A, Capital B, Capital C, Capital is P 3,000,000.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 2BD
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Transcribed Image Text:On December 31, 2018, the Statement of Financial Position of ABC Partnership provided
the following data with profit or loss ratio of 5:1:4:
Current Assets
Noncurrent Assets
P 500,000
1,100,000
1,200,000
700,000
On January 1, 2019, D is admitted to the partnership by investing P500.000 to the
partnership for 10% capital interest. The total agreed capitalization of the new partnership
P 1,500,000
2,000,000
Total Liabilities
A, Capital
B, Capital
C, Capital
is P 3,000,000.
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