How much is the net debit or net credit in capital account

Reference no: EM132649312

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
KIMI, Capital (40%) - 130,000
NO, 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?

Reference no: EM132649312

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