12. Candy and Dandy have just formed a partnership. Candy contributed cash of P126,00 and computer equipment that cost P54,000. The fair value of the computer is P36,000. Candy has a notes payable on the computer of P12,000 to be assumed by the partnership. Candy is to have 60% capital interest in the partnership. Dandy contributed only P90,000. The profit and loss ratio of the partners agreed is equally. Candy should make an additional investment(withdrawal)of; a. P96,000 b. P84,000 c. P(76,800) d. P(15,000)
12. Candy and Dandy have just formed a partnership. Candy contributed cash of P126,00 and computer equipment that cost P54,000. The fair value of the computer is P36,000. Candy has a notes payable on the computer of P12,000 to be assumed by the partnership. Candy is to have 60% capital interest in the partnership. Dandy contributed only P90,000. The profit and loss ratio of the partners agreed is equally. Candy should make an additional investment(withdrawal)of; a. P96,000 b. P84,000 c. P(76,800) d. P(15,000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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12. Candy and Dandy have just formed a partnership. Candy contributed cash of P126,00 and computer
equipment that cost P54,000. The fair value of the computer is P36,000. Candy has a notes payable
on the computer of P12,000 to be assumed by the partnership. Candy is to have 60% capital interest
in the partnership. Dandy contributed only P90,000. The profit and loss ratio of the partners agreed
is equally.
Candy should make an additional investment(withdrawal)of;
a. P96,000
b. P84,000
c. P(76,800)
d. P(15,000)
Question 13 and 14 are based on the following data:
On June 1, 2013, May and Nora formed a partnership. May is to invest assets at fair values. She is
to transfer her liabilities is to contribute sufficient cash to bring her total capital to P210,000 which is 70%
of the total capital of the partnership. Details regarding the book values of May's business assets and
liabilities and their corresponding fair values are:
Book Values
Fair Values
Accounts Receivable (Net)
53,800
P53.000
Inventory
98,400
107,000
Equipment
25,800
34,000
Notes payable
56,000
56,000
Nora agrees to invest cash of P42,000 and merchandise values at current market price.
13. What is the value of the merchandise to be invested by Nora?
14. What is the amount cash to be invested by May?
1,2013. The following
15. Loren and Jamby decide to combine their businesses form a partnership on
are their assets and liabilities on July 1, 2013 before formation:
Loren
Jamby
Assets
P210,750
P103,000
Liabilities
91,000
36,000
The following agreements are made to adjusts assets and liabilities:
a. Both partners will provide P5,000 allowance for doubtful accounts
b. Loren's fixed assets were over-depreciated by P1,000 and Jamby's fixed assets were under -
depreciated by P5,000
II
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