Assume that the assets and liabilities are fairly valued on the balance Sheet and the partnership decides to admit Mac as a new partner, with a 20% interest. No goodwill or bonus is to be recorded. How much Mac should contribute in cash or other assets? (Please Refer to the Image Uploaded) The following is the condensed balance sheet of the partnership Jo, Liand Bi who share profits and losses in the ratio of 4:3:3.P 180,000 Accounts, payable P 420,00060,000620,000| 400,000380,000P1,880,000CashOther assets1,660,000 Bi, Loan40,000 Jo, CapitalLi, CapitalBi, CapitalP 1,880,000 TotalJo, receivableTotal

Cash or other assets contributed to the firm by new partner: New admitting partner has to contribute…

The following is the condensed balance sheet of the partnership Jo, Li and Bi who share profits and losses in the ratio of 4:3:3. P 180,000 Accounts, payable P 420,000 60,000 620,000 | 400,000 380,000 P 1,880,000 Cash Other assets 1,660,000 Bi, Loan 40,000 Jo, Capital Li, Capital Bi, Capital P 1,880,000 Total Jo, receivable Total

The following is the condensed balance sheet of the partnership Jo, Li and Bi who share profits and losses in the ratio of 4:3:3. P 180,000 Accounts, payable P 420,000 60,000 620,000 | 400,000 380,000 P 1,880,000 Cash Other assets 1,660,000 Bi, Loan 40,000 Jo, Capital Li, Capital Bi, Capital P 1,880,000 Total Jo, receivable Total

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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