formation. Pamu contributed a parcel of land that cost her P200,000. Kevin contributed P300,000 cash. The land has a quoted price of P360,000 on October 1, 2021. What amount should be recorded in Pamu’s capital account upon formation of the partnership assuming the use of bonus method? a. P150,000 b. P198,000 c. P200,000 d. P360,000
formation. Pamu contributed a parcel of land that cost her P200,000. Kevin contributed P300,000 cash. The land has a quoted price of P360,000 on October 1, 2021. What amount should be recorded in Pamu’s capital account upon formation of the partnership assuming the use of bonus method? a. P150,000 b. P198,000 c. P200,000 d. P360,000
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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Question
On October 1, 2021, Pamu and Kevin formed a
in the ratio of 3:7, respectively. Balances of capital accounts should be in accordance with the
and loss
her P200,000. Kevin contributed P300,000 cash. The land has a quoted price of P360,000 on October
1, 2021. What amount should be recorded in Pamu’s capital account upon formation of the
partnership assuming the use of bonus method?
a. P150,000
b. P198,000
c. P200,000
d. P360,000
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