The partners agree on the following: a. P10,000 of the accounts receivable of X is to be written-off. b. An allowance for doubtful accounts of 15% is to be established on the remaining receivables of X and Y. c. The inventory of Y is to be valued at P140,000. d. The equipment of X is under depreciated by P20,000 and the equipment of Y has a fair value of P190,000. e. The note of X is dated December 1, 2017 and is subject to a 12% interest . Interest had not yet been accrued. f. The partners agree on a 2:1 profit and loss ratio. g. The partners agree to bring their capital balance proportionate to their profit and loss ratio. If Y's Capital is to be used as basis, how much is the adjusted capital of X after the formation? What is the total assets of the partnership immediately after the formation? If the goodwill method is to be used in determining the capital of each partner, how much is the adjusted capital of Y after the formation?
On March 1, 2018, X and Y formed a
X Y
Cash P500,000 P400,000
Allowance for doubtful accounts 50,000 20,000
Inventory 150,000 100,000
Equipment 500,000 200,000
Accumulated
Accounts Payable 50,000 400,000
Note Payable 200,000
The partners agree on the following:
a. P10,000 of the accounts receivable of X is to be written-off.
b. An allowance for doubtful accounts of 15% is to be established on the remaining receivables of X
and Y.
c. The inventory of Y is to be valued at P140,000.
d. The equipment of X is under depreciated by P20,000 and the equipment of Y has a fair value of
P190,000.
e. The note of X is dated December 1, 2017 and is subject to a 12% interest . Interest had not yet
been accrued.
f. The partners agree on a 2:1
g. The partners agree to bring their capital balance proportionate to their profit and loss ratio.
If Y's Capital is to be used as basis, how much is the adjusted capital of X after the formation?
What is the total assets of the partnership immediately after the formation?
If the
adjusted capital of Y after the formation?
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