Reference no: EM132649399
On July 1, 2020, ZI was admitted to the partnership when he purchased a proportionate interest from JE and LAI representing 20% interest in the net assets and profits of the firm for P100,000.
On this date, the carrying amounts of the assets and liabilities are as follows:
Cash - 20,000
Equipment - 340,000
Accounts Payable - 10,000
JE, Capital (40%) - 130,000
LAI, Capital (60%) - 220,000
The fair market value of equipment is P390,000.
Question 1: How much is the share of LAI on the revaluation?
Question 2: Using the information above, how much is the net debit or net credit in the capital account of LAI as a result from the admission of ZI?
Question 3: Using the information above, how much is to be credited to ZI?