11. In the AD partnership, Allen's capital is P140,000 and Daniel's is P40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. Allen and Daniel agree that some of the inventory is obsolete. The inventory account is decreased before David is admitted. David invests P40,000 for a one-fifth
11. In the AD partnership, Allen's capital is P140,000 and Daniel's is P40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. Allen and Daniel agree that some of the inventory is obsolete. The inventory account is decreased before David is admitted. David invests P40,000 for a one-fifth
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 39P
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Transcribed Image Text:11. In the AD partnership, Allen's capital
is P140,000 and Danieľ's is P40,000
and they share income in a 3:1 ratio,
respectively. They decide to admit
David to the partnership. Allen and
Daniel agree that some of the inventory
is obsolete. The inventory account is
decreased before David is admitted.
David invests P40,000 for a one-fifth
interest. What is the amount of
inventory written down? *
O a. P 4,000
b. Р10,000
O c. P15,000
d. P20,000
O O
ос
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