Question
On April 1, 2019, Alex, Benjie and Cesar formed a partnership by combining their separate business proprietors. Alex contributed cash of P500,000. Benjie contributed property
On April 1, 2019, Alex, Benjie and Cesar formed a partnership by combining their separate business proprietors. Alex contributed cash of P500,000. Benjie contributed property with 360,000 carrying amount, a P400,000 original cost and 800,000 fair market value. The partnership accepted responsibility for the 350,000 mortgage attached to the property. Cesar contributed equipment with a 300,000 carrying amount, P750,000 original cost, and 550,000 fair value. The partnership agreement specifies that profits and losses are to be shared equally but is silent regarding capital contributions.
Answer the following:
What is the capital balance of Benjie?
What is the capital balance of Alex?
What is the capital balance of Cesar?
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Accounting Tools for business decision making
Authors: kimmel, weygandt, kieso
4th Edition
978-0470117262, 9780470534786, 470117265, 470534788, 978-0470095461
