Juan and Pedro decided to combine their resources to form a partnership on June 1, 2022, stipulating that they will divide profits and losses based on this fraction: 2/5 for Juan, and 3/5 for Pedro. The net assets of Juan and Pedro are P 500,000 and P 750,000, respectively. Pedro’s inventories were undervalued by P 50,000. Both partners agree to recognize doubtful accounts of P 15,000 and P 20,000, respectively. How much should Pablo invest or withdraw so that their interest in partnership will be the same with their profit and loss sharing?
Juan and Pedro decided to combine their resources to form a partnership on June 1, 2022, stipulating that they will divide profits and losses based on this fraction: 2/5 for Juan, and 3/5 for Pedro. The net assets of Juan and Pedro are P 500,000 and P 750,000, respectively. Pedro’s inventories were undervalued by P 50,000. Both partners agree to recognize doubtful accounts of P 15,000 and P 20,000, respectively. How much should Pablo invest or withdraw so that their interest in partnership will be the same with their profit and loss sharing?
Chapter21: Partnerships
Section: Chapter Questions
Problem 11BCRQ
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Juan and Pedro decided to combine their resources to form a
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT