Sabio, as her original investment in the firm of Sabio and Mariano, contributed equipment that had been recorded in the books of her own business as costing P900,000, with accumulated depreciation of P620,000. The partners agreed on a valuation of P400,000. They also agreed to accept Sabio’s accounts receivable of P360,000, with allowance of 15% to be established.

SWFT Corp Partner Estates Trusts
42nd Edition
ISBN:9780357161548
Author:Raabe
Publisher:Raabe
Chapter13: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 47P
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Sabio, as her original investment in the firm of Sabio and Mariano, contributed equipment that had been recorded in the books of her own business as costing P900,000, with accumulated depreciation of P620,000. The partners agreed on a valuation of P400,000. They also agreed to accept Sabio’s accounts receivable of P360,000, with allowance of 15% to be established.

Prepare the journal entry to record Sabio’s investment in the partnership on June 13.

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