Using the following information, how much is B's initial capital in the partnership books? Use the following information for the next two questions: A and B formed a partnership. The following are their contributions: A B Cash 200,000 Accounts receivable 100,000 Inventory 160,000 Land 100,000 240,000 Building Total 460,000 340,000 Note payable А, саpital В. саptal 120,000 340,000 340,000 340,000 Total 460,000 Additional infonation: Included in accounts receivable is an account amounting to P40,000 which is deeme uncollectible. The inventory has an estimated selling price of P200,000 and estimated costs to sell of P20,000 An unpaid mortgage of P20,000 on the land is assumed by the partnership. The building is under-depreciated by P50,000. The building also has an unpaid mortgage amounting 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 P30,000 discount on note payable. A and B shall share in profits and losses 60% and 40%, respectively. P30,000, but the mortgage is no
Using the following information, how much is B's initial capital in the partnership books? Use the following information for the next two questions: A and B formed a partnership. The following are their contributions: A B Cash 200,000 Accounts receivable 100,000 Inventory 160,000 Land 100,000 240,000 Building Total 460,000 340,000 Note payable А, саpital В. саptal 120,000 340,000 340,000 340,000 Total 460,000 Additional infonation: Included in accounts receivable is an account amounting to P40,000 which is deeme uncollectible. The inventory has an estimated selling price of P200,000 and estimated costs to sell of P20,000 An unpaid mortgage of P20,000 on the land is assumed by the partnership. The building is under-depreciated by P50,000. The building also has an unpaid mortgage amounting 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 P30,000 discount on note payable. A and B shall share in profits and losses 60% and 40%, respectively. P30,000, but the mortgage is no
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Question
Transcribed Image Text:Using the following
information, how much is B's
initial capital in the
partnership books?
Use the following information for the next two questions:
A and B formed a partnership. The following are their contributions:
A
В
Cash
200,000
Accounts receivable
100,000
Inventory
160,000
Land
100,000
Building
Total
240,000
460,000
340,000
Note payable
A, capital
В, сарital
Total
120,000
340,000
340,000
460,000
340,000
Additional infonation:
Included in accounts receivable is an account amounting to P40,000 which is deemed
uncollectible.
The inventory has an estimated selling price of P200,000 and estimated costs to sell of P20,000.
An unpaid mortgage of P20,000 on the land is assumed by the partnership.
The building is under-depreciated by P50,000.
The building also has an unpaid mortgage amounting to P30,000, 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
P30,000 discont on note payable.
A and B shall share in profits and losses 60% and 40%, respectively.
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