Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. problem 1 (ftg revised) val, khu, and lawrence a

PROBLEM 1 (FTG REVISED) VAL, KHU, and LAWRENCE are partners in VAKHULAW CO....

90.2K

Verified Solution

Question

Accounting

PROBLEM 1 (FTG REVISED)

VAL, KHU, and LAWRENCE are partners in VAKHULAW CO. sharing profits in the ratio of 3:3:2. Investments are P600,000, P400,000, and P300,000, respectively. The partners agreed to admit TYONG-GO on the following basis: TYONG-GO is to pay VAL, P400,000 for 1/2 of VALs interest; TYONG-GO is also to invest P300,000 in the business. The partners agreed that revaluation of assets must be determined based on the agreed capital. The total capital of the partnership is to be P2,000,000, of which TYONG-GOs interest is to be P500,000 upon admission.

REQUIRED:

1. Prepare a statement of partners equity that will show the capital balances of VAL, KHU, LAWRENCE and TYONG-GO after admission of TYONG-GO, respectively.
Present your solution and the statement in good form.

2. Prepare the entries upon admission of TYONG-GO.

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