AA BB Cash P75,000 P45,000 Accounts Receivable Inventory Property and Equipment Accumulated Depreciation 180,000 150,000 160,000 120,000 100,0০০ 120,0০০ (a5.000) (15.000) AZ9,000 420,000 Accounts Payable 138,000 100,000 Capital 332.000 320.000 A70,000 420,000
AA BB Cash P75,000 P45,000 Accounts Receivable Inventory Property and Equipment Accumulated Depreciation 180,000 150,000 160,000 120,000 100,0০০ 120,0০০ (a5.000) (15.000) AZ9,000 420,000 Accounts Payable 138,000 100,000 Capital 332.000 320.000 A70,000 420,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On September 13, 2016, AA and BB decided to combine their assets and form a partnership. The partnership is to take over the business assets and assume the business liabilities; and capitals are to be based on net assets and transferred after the following adjustments.
1. BB's inventory is to be valued at P140,000.
2. A 5% allowance for uncollectible accounts is to be established on the accounts receivable of each party.
3. Accrued liabilities of P8,000 are to be recognized in AA's books.
The statements of financial position on September 13 before adjustments are given below.
Required:
3. Prepare the statement of financial position as of September 13,2016
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