nd 40%, respectively. 5. How much is B’s initial capital in the partnership books? ____________ 6. Assume that a partner’s capital shall be increased accordingly by contributing additional cash to bring the partners’ capital balances proportionate to their profit or loss ratio. Which partner should provide additional cash and how much is the additional cash contribution? ____________
Additional information:
• Included in accounts receivable is an account amounting to ₱40,000 which is deemed uncollectible.
• The inventory has an estimated selling price of ₱200,000 and estimated costs to sell of ₱20,000.
• An unpaid mortgage of ₱20,000 on the land is assumed by the partnership.
• The building is under-
• The building also has an unpaid mortgage amounting to ₱30,000, but the mortgage is not assumed by
the partnership. B agreed to settle the mortgage using his personal funds.
• The note payable is stated at face amount. A proper valuation requires the recognition of a ₱30,000
discount on note payable.
• A and B shall share in profits and losses 60% and 40%, respectively.
5. How much is B’s initial capital in the partnership books? ____________
6. Assume that a partner’s capital shall be increased accordingly by contributing additional cash to bring
the partners’ capital balances proportionate to their profit or loss ratio. Which partner should provide
additional cash and how much is the additional cash contribution? ____________
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