A has an existing business and admits B as a partner in the business.Statement of Financial Position accounts of A just before the admission of B show:CashAccounts ReceivableMerchandise inventoryAccounts Payable88,00015,00055,0002,500It was agreed that for purposes of establishing A's interest, the following adjustments be made:. An Allowance for Doubtful Accounts of 5% of accounts receivable is to be set up;. Merchandise inventory is to be valued at P43,000.If B is to invest sufficient cash to obtain 60% interest in the partnership.Compute B's cash contribution.

Name: A has an existing business and admits B as a partner in the business.
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Description: A has an existing business and admits B as a partner in the business.Statement of Financial Position accounts of A just before the admission of B show:CashAccounts ReceivableMerchandise inventoryAccounts Payable88,00015,00055,0002,500It was agreed t

Admission of New Partner There are two different forms of partnership admission, then. A new partner…

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has an existing business and admits B as a partner in the business. tatement of Financial Position accounts of A just before the admission of B show: Cash Accounts Receivable Merchandise inventory 88,000 15,000 55,000

has an existing business and admits B as a partner in the business. tatement of Financial Position accounts of A just before the admission of B show: Cash Accounts Receivable Merchandise inventory 88,000 15,000 55,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 7DQ

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PROBLEM: Moira admits Joni as a partner in the business. Balance sheet accounts of Moira just before the admission of July shows: Cash, P43,000, Accounts Receivable, P150,000, Merchandise Inventory, P170,000, and Accounts Payable, P52,000. It was agreed that for purposes of establishing Moira’s interest, the following adjustments should be made: 1.) an allowance for doubtful accounts of 3% of accounts receivable is to be established; 2.) merchandise inventory is to be increased by P25,000; and 3.) prepaid expenses of P7,600 and accrued liabilities of P4,800 are to be recognized. QUESTION: If Joni is to invest sufficient cash to obtain 2/5 interest in the partnership, what amount should she contribute to the new business? (Good Accounting Form)
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