9. On January 1, 2016, AB and QR agreed to form a partnership. The following are their assets and liabilities. Accounts QR P76,000 Cash Accounts Receivable Inventories Machinery Accounts Payable Notes Payable AB P136,000 88,000 48,000 304,000 364,000 480,000 440,000 216,000 144,000 140,000 60,000 AB decided to pay-off his notes payable from his personal assets. It was also agreed that QR inventories were overstated by P24,000 and AB machinery was over-depreciated P20,000. QR is to invest/withdraw cash in order to receive a capital credit that is 20% more than AB's total net investment in the partnership. Immediately after formation, how much cash will be presented in the partnership' Statement of Financial Position?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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9. On January 1, 2016, AB and QR agreed to form a partnership. The following are their assets and liabilities.
Accounts
QR
P76,000
88,000 48,000
304,000 364,000
480,000 440,000
216,000 144,000
140,000 60,000
Cash
Accounts Receivable
Inventories
Machinery.
Accounts Payable
Notes Payable
AB
P136,000
AB decided to pay-off his notes payable from his personal assets. It was also agreed that QR inventories were
overstated by P24,000 and AB machinery was over-depreciated P20,000. QR is to invest/withdraw cash in order to
receive a capital credit that is 20% more than AB's total net investment in the partnership.
Immediately after formation, how much cash will be presented in the partnership' Statement of Financial Position?
9
Transcribed Image Text:9. On January 1, 2016, AB and QR agreed to form a partnership. The following are their assets and liabilities. Accounts QR P76,000 88,000 48,000 304,000 364,000 480,000 440,000 216,000 144,000 140,000 60,000 Cash Accounts Receivable Inventories Machinery. Accounts Payable Notes Payable AB P136,000 AB decided to pay-off his notes payable from his personal assets. It was also agreed that QR inventories were overstated by P24,000 and AB machinery was over-depreciated P20,000. QR is to invest/withdraw cash in order to receive a capital credit that is 20% more than AB's total net investment in the partnership. Immediately after formation, how much cash will be presented in the partnership' Statement of Financial Position? 9
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