On July 1 of the current year, Abella and Balansay formed a partnership Abella is to invest certain business assets at values which are yet to be agreed upon. He is to transfer his business liabilities and to contribute sufficient cash to bring his total capital to P495,000, which is 60% of the total capital s had been agreed upon. Details regarding the book values of Abella's business assets and liabilities and their corresponding valuation follow: Book values Agreed valuations P148,50 16,500 288,750 Accounts receivable P148,500 9,900 265,650 Allowance for doubtful accounts Merchandise inventory Store equipment AD-Store equipment 74,250 49,500 36,300 Office equipment AD-Office equipment Accounts payable 49,500 26,400 132,000 13,200 132,000 Balansay agrees to invest cash of P82,500 and merchandise valued at current market price. The value of the merchandise to be invested by Balansay and the amount of cash to be invested by Abella are? a. P330,000 and P132,000 respectively. b. P577,500 and P135,300 respectively. E. P288,750 and P137,500 respectively. d. P247,500 and P132,000 respectively.
On July 1 of the current year, Abella and Balansay formed a partnership Abella is to invest certain business assets at values which are yet to be agreed upon. He is to transfer his business liabilities and to contribute sufficient cash to bring his total capital to P495,000, which is 60% of the total capital s had been agreed upon. Details regarding the book values of Abella's business assets and liabilities and their corresponding valuation follow: Book values Agreed valuations P148,50 16,500 288,750 Accounts receivable P148,500 9,900 265,650 Allowance for doubtful accounts Merchandise inventory Store equipment AD-Store equipment 74,250 49,500 36,300 Office equipment AD-Office equipment Accounts payable 49,500 26,400 132,000 13,200 132,000 Balansay agrees to invest cash of P82,500 and merchandise valued at current market price. The value of the merchandise to be invested by Balansay and the amount of cash to be invested by Abella are? a. P330,000 and P132,000 respectively. b. P577,500 and P135,300 respectively. E. P288,750 and P137,500 respectively. d. P247,500 and P132,000 respectively.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 14P
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Transcribed Image Text:. On July 1 of the current year, Abella and Balansay formed a partnership
Abella is to invest certain business assets at values which are yet to be
agreed upon. He is to transfer his business liabilities and to contribute
sufficient cash to bring his total capital to P495,000, which is 60% of the
total capital s had been agreed upon.
Details regarding the book values of Abella's business assets and liabilities
and their corresponding valuation follow:
Book values Agreed valuations
P148,500
16,500
288,750
P148,500
9,900
Accounts receivable
Allowance for doubtful accounts
Merchandise inventory
Store equipment
AD- Store equipment
265,650
74,250
49,500
36,300
Office equipment
AD-Office equipment
Accounts payable
49,500
26,400
132,000
13,200
132,000
Balansay agrees to invest cash of P82,500 and merchandise valued at
current market price. The value of the merchandise to be invested by
Balansay and the amount of cash to be invested by Abella are?
a. P330,000 and P132,000 respectively.
b. P577,500 and P135,300 respectively.
P288,750 and P137,500 respectively.
d. P247,500 and P132,000 respectively.
C.
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