On January 31, 20x5, partners of Lon, Mac & Nan, LLP, had the following loan and capital account balances (after closing entries for January): Loan receivable from Lon.. Loan payable to Nan Lon, capital.. Mac, capital Nan, capital.. P 20,000 dr 60,000 ar 30,000dr 120,000'cr 70,000 cr The partnership's income sharing ratio was Lon, 50%; Mac, 20%, and Nan, 30%. On January 31, 20x5, Ole was admitted to the partnership for a 20% interest in total capital of the partnership in exchange for an investment of P40,000 cash. Prior to Ole's admission, the existing partners agreed to increase the carrying amount of the partnership's inventories to current fair value, a P60,000 increase. The capital account to be credited to Ole:

On January 31, 20x5, partners of Lon, Mac & Nan, LLP, had the following loan and capital account balances (after closing entries for January): Loan receivable from Lon.. Loan payable to Nan Lon, capital.. Mac, capital Nan, capital.. P 20,000 dr 60,000 ar 30,000dr 120,000'cr 70,000 cr The partnership's income sharing ratio was Lon, 50%; Mac, 20%, and Nan, 30%. On January 31, 20x5, Ole was admitted to the partnership for a 20% interest in total capital of the partnership in exchange for an investment of P40,000 cash. Prior to Ole's admission, the existing partners agreed to increase the carrying amount of the partnership's inventories to current fair value, a P60,000 increase. The capital account to be credited to Ole:

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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