Show the solution in good accounting form Partners John and Paul divide profits and losses 6:4 with capital balancesof P 540,000 and P670,000 respectively. They agreed to admit Peter byhis purchase of one-fourth of John's interest for P300,00O. They agreedto write off Accounts Receivable worth P 10,600. Fixed assets wereunder-depreciated by P 30,000. Payments of accounts payable in theamount of P 8,600 was not posted to the payable account. What amountshall be debited to John's interest? *P127,620P128,910P130,200P300,000

GIVEN CAPITAL John 540000 cr Paul 67000 cr Profit Sharing Ratio 6 : 4

Partners John and Paul divide profits and losses 6:4 with capital balances of P 540,000 and P670,000 respectively. They agreed to admit Peter by his purchase of one-fourth of John's interest for P300,000. They agreed to write off Accounts Receivable worth P 10,600. Fixed assets were under-depreciated by P 30,000. Payments of accounts payable in the amount of P 8,600 was not posted to the payable account. What amount shall be debited to John's interest?

Partners John and Paul divide profits and losses 6:4 with capital balances of P 540,000 and P670,000 respectively. They agreed to admit Peter by his purchase of one-fourth of John's interest for P300,000. They agreed to write off Accounts Receivable worth P 10,600. Fixed assets were under-depreciated by P 30,000. Payments of accounts payable in the amount of P 8,600 was not posted to the payable account. What amount shall be debited to John's interest?

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter20: Corporations And Partnerships

Section: Chapter Questions

Problem 5CPA

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Partners John and Paul divide profits and losses 6:4 with capital balances of P 540,000 and P670,000 respectively. They agreed to admit Peter by his purchase of one-fourth of John’s interest for P300,000. They agreed to write off Accounts Receivable worth P 10,600. Fixed assets were under-depreciated by P 30,000. Payments of accounts payable in the amount of P 8,600 was not posted to the payable account. What amount shall be debited to John’s interest? a. P127,620 b. P128,910 c. P130,200 d. P300,000
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