A and B are partners in AB Partnership sharing profits and losses 25% and 75%, respectively. On January 1, 2020, the partners revised their profits and loss sharing ratio into 40% to A and 60% to B. On the date of change, the partnership’s land with a carrying value of P500,000 was appraised to have a fair value of P1,000,000. On August 1, 2020, the land was sold for P1,500,000. The total increase in the capital of B as a result of the above was:
A and B are partners in AB Partnership sharing profits and losses 25% and 75%, respectively. On January 1, 2020, the partners revised their profits and loss sharing ratio into 40% to A and 60% to B. On the date of change, the partnership’s land with a carrying value of P500,000 was appraised to have a fair value of P1,000,000. On August 1, 2020, the land was sold for P1,500,000. The total increase in the capital of B as a result of the above was:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A and B are partners in AB
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