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Gerald and Julia are joining their separate businesses to form a partnership and they agreed to share profits in the manner of 55% for Gerald and 45% for Julia. Property is to be contributed for a total capital of P800,000. The partners agreed to make their capital accounts equal after formation. Gerald Book Value Fair Value Accounts Receivable 60,000 60,000 Inventories 60,000 90,000 Equipment Accounts Payable 80,000 30,000 100,000 30,000

Gerald and Julia are joining their separate businesses to form a partnership and they agreed to share profits in the manner of 55% for Gerald and 45% for Julia. Property is to be contributed for a total capital of P800,000. The partners agreed to make their capital accounts equal after formation. Gerald Book Value Fair Value Accounts Receivable 60,000 60,000 Inventories 60,000 90,000 Equipment Accounts Payable 80,000 30,000 100,000 30,000

SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 2BD
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Show the solution in good accounting form. How much cash must be contributed by each of the partners after they contributed thier properties?
Gerald and Julia are joining their separate businesses to form a partnership and they agreed to share profits in the manner of 55% for Gerald and 45% for Julia. Property is to be contributed for a total capital of P800,000. The partners agreed to make their capital accounts equal after formation. Gerald Book Value Fair Value Accounts Receivable 60,000 60,000 60,000 90,000 80,000 Inventories Equipment Accounts Payable 100,000 30,000 30,000 Julia Book Value Fair Value Accounts Receivable 180,000 190,000 Inventories 160,000 Equipment Accounts Payable 180,000 20,000 20,000
Transcribed Image Text:Gerald and Julia are joining their separate businesses to form a partnership and they agreed to share profits in the manner of 55% for Gerald and 45% for Julia. Property is to be contributed for a total capital of P800,000. The partners agreed to make their capital accounts equal after formation. Gerald Book Value Fair Value Accounts Receivable 60,000 60,000 60,000 90,000 80,000 Inventories Equipment Accounts Payable 100,000 30,000 30,000 Julia Book Value Fair Value Accounts Receivable 180,000 190,000 Inventories 160,000 Equipment Accounts Payable 180,000 20,000 20,000
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