Mikasa Ackerman and Eren Yeager agreed to form a partnership contributing their respective assets and liabilities subject to the following adjustments: a. Accounts receivable of P50,000 and P750,000 in their respective books are uncollectible. b. Inventories of P27,500 and P33,500 are worthless in their respective books. c. Other assets of P10,000 and P18,000 in Mikasa Ackerman’ and Eren Yeager’s books are to be written off. How much is the total accounts receivable balance of the partnership at formation? 3,212,130 2,789,450 1,839,685 4,012,130 Total adjustment to capital account of each partner: P95,500, decrease; P793,500, increase P95,500, decrease; P793,500, decrease P801,500, decrease; P87,500, decrease P87,500, decrease; P801,500, decrease
Mikasa Ackerman and Eren Yeager agreed to form a partnership contributing their respective assets and liabilities subject to the following adjustments: a. Accounts receivable of P50,000 and P750,000 in their respective books are uncollectible. b. Inventories of P27,500 and P33,500 are worthless in their respective books. c. Other assets of P10,000 and P18,000 in Mikasa Ackerman’ and Eren Yeager’s books are to be written off. How much is the total accounts receivable balance of the partnership at formation? 3,212,130 2,789,450 1,839,685 4,012,130 Total adjustment to capital account of each partner: P95,500, decrease; P793,500, increase P95,500, decrease; P793,500, decrease P801,500, decrease; P87,500, decrease P87,500, decrease; P801,500, decrease
Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
Problem 14DQ
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Mikasa Ackerman and Eren Yeager agreed to form a partnership contributing their respective assets and liabilities subject to the following adjustments:
a. Accounts receivable of P50,000 and P750,000 in their respective books are uncollectible.
b. Inventories of P27,500 and P33,500 are worthless in their respective books.
c. Other assets of P10,000 and P18,000 in Mikasa Ackerman’ and Eren Yeager’s books are to be written off.
a. Accounts receivable of P50,000 and P750,000 in their respective books are uncollectible.
b. Inventories of P27,500 and P33,500 are worthless in their respective books.
c. Other assets of P10,000 and P18,000 in Mikasa Ackerman’ and Eren Yeager’s books are to be written off.
How much is the total accounts receivable balance of the partnership at formation?
3,212,130
2,789,450
1,839,685
4,012,130
Total adjustment to capital account of each partner:
P95,500, decrease; P793,500, increase
P95,500, decrease; P793,500, decrease
P801,500, decrease; P87,500, decrease
P87,500, decrease; P801,500, decrease
Transcribed Image Text:After returning from Canada, the best friends, Mikasa Ackerman and Eren Yeager decided to form a
partnership on May 1, 2017. Both are sole proprietors with business accounts appear below:
Cash
Accounts Receivable
Merchandise Inventory
Land
Buildings
Mikasa Ackerman
P55,000
1,172,680
600,175
3,015,000
Eren Yeager
P111,770
2,839,450
1,300,510
2,141,335
173,945
18,000
251,725
10,000
894,700
1,000,000
3,209,880
Furniture and Fixtures
Other Assets
Accounts Payable
Notes Payable
Mikasa Ackerman, Capital
Eren Yeager, Capital
1,218,250
1,725,000
3,641,760
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