Pipoy contributed P 24,000 and Kikay contributed 48,000 to form a partnership, and they agreed to share profits in the ratio of original contributions. During the 1st year of operations, they made a profit of 16,290; Pipoy withdraw 5,050 and Kikay withdraw 8,000. At the start of the following year, they agreed to admit Gigi into the partnership. She was to receive a ¼ interest in the capital & profits upon payment of 30,000 to Pipoy & Kikay. * What is the Capital balance of Pipoy & Kikay before admission of Gigi? 24,380 ; 50,860 respectively 29,430 ; 58,860 respectively 24,000 ; 48,000 respectively 18,950 ; 40,000brespectively * What is the book value of interest acquired by Gigi? a. 18,000 b. 26,310 c. 18,810 d. not given * What is the new profit-loss sharing ratio for Kikay? a. 53.33% b. 25% c. 26.67% d. 50%
Pipoy contributed P 24,000 and Kikay contributed 48,000 to form a partnership, and they agreed to share profits in the ratio of original contributions. During the 1st year of operations, they made a profit of 16,290; Pipoy withdraw 5,050 and Kikay withdraw 8,000. At the start of the following year, they agreed to admit Gigi into the partnership. She was to receive a ¼ interest in the capital & profits upon payment of 30,000 to Pipoy & Kikay. * What is the Capital balance of Pipoy & Kikay before admission of Gigi? 24,380 ; 50,860 respectively 29,430 ; 58,860 respectively 24,000 ; 48,000 respectively 18,950 ; 40,000brespectively * What is the book value of interest acquired by Gigi? a. 18,000 b. 26,310 c. 18,810 d. not given * What is the new profit-loss sharing ratio for Kikay? a. 53.33% b. 25% c. 26.67% d. 50%
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 46P
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Question
Pipoy contributed P 24,000 and Kikay contributed 48,000 to form a partnership , and they agreed to share profits in the ratio of original contributions. During the 1st year of operations, they made a profit of 16,290; Pipoy withdraw 5,050 and Kikay withdraw 8,000. At the start of the following year, they agreed to admit Gigi into the partnership. She was to receive a ¼ interest in the capital & profits upon payment of 30,000 to Pipoy & Kikay.
* What is the Capital balance of Pipoy & Kikay before admission of Gigi?
24,380 ; 50,860 respectively
29,430 ; 58,860 respectively
24,000 ; 48,000 respectively
18,950 ; 40,000brespectively
* What is the book value of interest acquired by Gigi?
a. 18,000
b. 26,310
c. 18,810
d. not given
* What is the new profit-loss sharing ratio for Kikay?
a. 53.33%
b. 25%
c. 26.67%
d. 50%
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