A and B are combining their separate businesses to form a partnership. Presented here are the Statements of Financial Position before any adjustments:
A and B are combining their separate businesses to form a partnership. Presented here are the Statements of Financial Position before any adjustments:
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 59P
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Transcribed Image Text:A and B are combining their separate businesses to form a partnership. Presented here
are the Statements of Financial Position before any adjustments:
Current Assets
Non-current Assets
Total Liabilities
●
A
617,500
848,000
150,000
B
672,500
970,000
178,000
They agreed to set up P5,000 each as uncollectible accounts on their accounts
receivable.
They also found out that their Non-current assets (all depreciable assets) were
under-depreciated by P80,000 each.
The partners agreed to equalize their capital balance upon formation. Compute the
total capital of the partnership.
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