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MULTIPLE CHOICE:
1. B
2. D
3. D
4. A
5. B
6. A
1. The amount should be recorded in Jose’s capital account on formation of the partnership is
P55,000.
2. Blue should contribute the following of cash: P40,000.
Computation:
40,000+80,000= P120,000
Ratio: 1:3
120,000x1/3= 40,000
3.The amount of cash should Perla contribute is P200,000.
Computation:
Elsa’s Cash: 300,000
Elsa’s Interest: 60% Perla: 40%
300,000/60%= 500,000 (base of 100%)
500,000x40%= 200,000 (cash should Perla contribute)
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