On February 1, 2022, AA and BB formed a partnership and agreed to share profits in the ratio of 4:6, respectively. AA contributed a laptop which cost him P68,000 and was estimated to have a value of P50,000 on date of formation. BB contributed cash of P250,000. How much is the capital account of BB upon formation of the partnership?
On February 1, 2022, AA and BB formed a partnership and agreed to share profits in the ratio of 4:6, respectively. AA contributed a laptop which cost him P68,000 and was estimated to have a value of P50,000 on date of formation. BB contributed cash of P250,000. How much is the capital account of BB upon formation of the partnership?
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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Transcribed Image Text:On February 1, 2022, AA and BB formed a
partnership and agreed to share profits in the
ratio of 4:6, respectively. AA contributed a
laptop which cost him P68,000 and was
estimated to have a value of P50,000 on date
of formation. BB contributed cash of
P250,000.
How much is the capital account of BB upon
formation of the partnership?
Transcribed Image Text:AA, BB and CC are partners with capital
balances of P392,000, P1,365,000 and
P595,000 respectively, sharing profits and
losses in the ratio of 3:2:1. DD is admitted as
a new partner bringing with him expertise
and is to invest cash for a 25% interest in the
partnership which includes a credit of
P367,500 for bonus upon his admission.
How much cash should DD contribute?
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