23. The capital account balances for April & May LLP on January 1, 2020, were as follows: April, capital P200.000 May, capital PI00,000 April and May shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit July to the partnership with a 35% interest in partnership capital and net income. July invested P100,000 cash and no goodwill was recognized. What is the balance of April's capital account after the new partnership is created?
23. The capital account balances for April & May LLP on January 1, 2020, were as follows: April, capital P200.000 May, capital PI00,000 April and May shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit July to the partnership with a 35% interest in partnership capital and net income. July invested P100,000 cash and no goodwill was recognized. What is the balance of April's capital account after the new partnership is created?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer and show the solution. Thank you!
Transcribed Image Text:23. The capital account balances for April & May LLP on January 1, 2020, were as follows:
April, capital
P200.000
May, capital
P100,000
April and May shared net income and losses in the ratio of 3:2, respectively. The partners agreed to
admit July to the portnership with a 35% interest in partnership capital and net income. July invested
P100,000 cash and no goodwill was recognized. What is the balance of Apri's capital account after
the new partnership is created?
Transcribed Image Text:24. The partnership of Kris, Erich and Eunice reflected beginning capital balances of P75.000; P25,000 and
P100.000 and profit and loss ratios of 5:4:1 to Kris, Erich and Eunice, respectively. The partners plan to
dissolve their business and admit Kelly into the new partnership. Kelly is to invest P25,000 for a 10%
interest in the new partnership and is to be credited the same amount of capital in the new
partnership. Determine the capital balance of Kris after Kelly's admission into the partnership.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education