Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. abada and acosta form a partnership. abada contrib

Abada and Acosta form a partnership. Abada contributed cash of P3,000,000 and an equipment costing...

60.1K

Verified Solution

Question

Accounting

Abada and Acosta form a partnership. Abada contributed cash of P3,000,000 and an equipment costing P6,000,000. Acosta contributed land costing P6,000,000. The current market value of the assets are as follows: equipment - P4,500,000; land P7,500,000. The partnership will assume a P1,500,000 liability on the land contributed by Acosta. The capital accounts of the partners will be credited as follows: A. P9,000,000 to Abada; P4,500,000 to Acosta B. P3,000,000 to Abada; P7,500,000 to Acosta C. P7,500,000 to Abada; P6,000,000 to Acosta D. P3,000,000 to Abada; P6,000,000 to Acosta 51. On May 1, 2021, Cobb and Mott formed a partnership and agreed to share profits and losses in the ratio for 3:7, respectively. Cobb contributed a parcel of land that cost him P10,000. Mott contributed P40,000 cash. The land was sold for P18,000 on May 1, 2021, immediately after formation of the partnership. What amount should be recorded in Cobb's capital account on formation of the partnership?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students