A and B are combining their separate businesses to form a partnership. Presented hereare the Statements of Financial Position before any adjustments:Current AssetsNon-current AssetsTotal Liabilities●A617,500848,000150,000B672,500970,000178,000They agreed to set up P5,000 each as uncollectible accounts on their accountsreceivable.They also found out that their Non-current assets (all depreciable assets) wereunder-depreciated by P80,000 each.The partners agreed to equalize their capital balance upon formation. Compute thetotal capital of the partnership.

When two different business merge together and put their capital in a business, it is considered as…

Answered: A and B are combining their separate…

A and B are combining their separate businesses to form a partnership. Presented here are the Statements of Financial Position before any adjustments:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A and B are combining their separate businesses to form a partnership. Presented here
are the Statements of Financial Position before any adjustments:
Current Assets
Non-current Assets
Total Liabilities
●
A
617,500
848,000
150,000
B
672,500
970,000
178,000
They agreed to set up P5,000 each as uncollectible accounts on their accounts
receivable.
They also found out that their Non-current assets (all depreciable assets) were
under-depreciated by P80,000 each.
The partners agreed to equalize their capital balance upon formation. Compute the
total capital of the partnership.

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