Maria admits Daisy as a partner in the business. Financial position accounts of Maria on September 30, just before admission of Daisy show: Cash, P52,000; Accounts Receivable, P240,000; Merchandise Inventory, P360,000; Accounts Payable of P124,000. It is agreed that for purposes of establishing Maria’s interest, the following adjustments shall be made: (1) An allowance for doubtful accounts of 3% is to be established (2) Merchandise inventory is to be adjusted upward by P50,000 and (3) Prepaid expenses of P7,000 and accrued liabilities of P8,000 are to be recognized. Daisy is to invest sufficient cash to obtain 2/5 interest in the partnership. How much is the total capital of the partnership after dissolution
Maria admits Daisy as a partner in the business. Financial position accounts of Maria on September 30, just before admission of Daisy show: Cash, P52,000; Accounts Receivable, P240,000; Merchandise Inventory, P360,000; Accounts Payable of P124,000. It is agreed that for purposes of establishing Maria’s interest, the following adjustments shall be made: (1) An allowance for doubtful accounts of 3% is to be established (2) Merchandise inventory is to be adjusted upward by P50,000 and (3) Prepaid expenses of P7,000 and accrued liabilities of P8,000 are to be recognized. Daisy is to invest sufficient cash to obtain 2/5 interest in the partnership. How much is the total capital of the partnership after dissolution
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 89P
Related questions
Question
Maria admits Daisy as a partner in the business. Financial position accounts of Maria on September 30, just before admission of Daisy show: Cash, P52,000; Accounts Receivable, P240,000; Merchandise Inventory, P360,000; Accounts Payable of P124,000. It is agreed that for purposes of establishing Maria’s interest, the following adjustments shall be made: (1) An allowance for doubtful accounts of 3% is to be established (2) Merchandise inventory is to be adjusted upward by P50,000 and (3) Prepaid expenses of P7,000 and accrued liabilities of P8,000 are to be recognized. Daisy is to invest sufficient cash to obtain 2/5 interest in the partnership. How much is the total capital of the partnership after dissolution
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage