On January 1, 2021, Hinata, Tsukki and Kageyama formed Haikyu Partnership with a total agreed capitalization of P1,000,000. The capital interest ratio of the Haikyu Partnership is 5:1:4 while the profit or loss ratio is 6:2:2, respectively for Hinata, Tsukki, and Kageyama. During 2021, Hinata and Tsukki made additional investments of P200,000 and P500,000, respectively. At the end of 2021, Hinata and Kageyama made drawings of P300,000 and P100,000, respectively. On December 31, 2021, the capital balance of Kageyama is reported at P250,000. How much is the total equity at the end of the year?

On January 1, 2021, Hinata, Tsukki and Kageyama formed Haikyu Partnership with a total agreed capitalization of P1,000,000. The capital interest ratio of the Haikyu Partnership is 5:1:4 while the profit or loss ratio is 6:2:2, respectively for Hinata, Tsukki, and Kageyama. During 2021, Hinata and Tsukki made additional investments of P200,000 and P500,000, respectively. At the end of 2021, Hinata and Kageyama made drawings of P300,000 and P100,000, respectively. On December 31, 2021, the capital balance of Kageyama is reported at P250,000. How much is the total equity at the end of the year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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