The statement of financial position May Partnership on December 31, 2020 is given below: Cash P45,000 Accounts payable P70,000 Receivable 25,000 Loan payable to Mateo 30,000 Inventories 180,000 Mateo, capital 75,000 Plant and equipment 120,000 Vicente, capital 75,000 Ibe, capital 120,000 Total P370,000 Total P370,000 A new partner, Francisco, was admitted on January 1, 2021, who purchased Mareo’s capital by giving his car costing P250,000 but with a book value of P125,000 and a market value of P100,000, How much was Francisco, capital credited? Answer without peso signs but with commas.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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