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…

Answered: The following is the condensed balance…

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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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, 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
P1,880,000
Cash
Other assets
1,660,000 Bi, Loan
40,000 Jo, Capital
Li, Capital
Bi, Capital
P 1,880,000 Total
Jo, receivable
Total

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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