Accounts Payable Notes Payable Dela Cruz, Capital Gascon, Capital Total P 223,675 250,000 802,470 P 304,562.50 431,250 910,440 P 1,276,145 P 1,646,252.50 Dela Cruz and Gascon agreed to form a partnership contributing their respective assets and equities subject to the following adjustments: a. Accounts receivable of P25,000 in Dela Cruz's books and P43,750 in Gascon's are uncollectible. b. Inventories of P6,875 and P8,375 are worthless in Dela Cruz's and Gascon's respective books. C. Other assets of P2,500 and P4,500 in Dela Cruz's and Gascon's respective books are to be written off. The capital account of the partners after the adjustments will be: a. Dela Cruz, P769,927.50; Gascon, P897,367.50 b. Dela Cruz, P801,095; Gascon, P890,431.25 C. Dela Cruz,P801,095; Gascon, P853,812.50 d. Dela Cruz, P768,095; Gascon, P853,815

Accounts Payable Notes Payable Dela Cruz, Capital Gascon, Capital Total P 223,675 250,000 802,470 P 304,562.50 431,250 910,440 P 1,276,145 P 1,646,252.50 Dela Cruz and Gascon agreed to form a partnership contributing their respective assets and equities subject to the following adjustments: a. Accounts receivable of P25,000 in Dela Cruz's books and P43,750 in Gascon's are uncollectible. b. Inventories of P6,875 and P8,375 are worthless in Dela Cruz's and Gascon's respective books. C. Other assets of P2,500 and P4,500 in Dela Cruz's and Gascon's respective books are to be written off. The capital account of the partners after the adjustments will be: a. Dela Cruz, P769,927.50; Gascon, P897,367.50 b. Dela Cruz, P801,095; Gascon, P890,431.25 C. Dela Cruz,P801,095; Gascon, P853,812.50 d. Dela Cruz, P768,095; Gascon, P853,815

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

100%

8. The business assets of Dela Cruz and Gascon appears below:
Gascon
P 27,942.50
709,862.50
325,127.50
Dela Cruz
Cash
P 13,750
Accounts Receivable
293,170
150,043.75
753,750
Inventories
Land
Building
535,333.75
43,486.25
4,500
P 1,276,145 P 1,646,252.50
Furniture and Fixtures
62,931.25
Other Assets
2,500
Total

Accounts Payable
Notes Payable
Dela Cruz, Capital
P 223,675
250,000
802,470
P 304,562.50
431,250
Gascon, Capital
Total
910,440
P 1,276,145 P 1,646,252.50
Dela Cruz and Gascon agreed to form a partnership contributing their
respective assets and equities subject to the following adjustments:
a. Accounts receivable of P25,000 in Dela Cruz's books and P43,750 in
Gascon's are uncollectible.
b. Inventories of P6,875 and P8,375 are worthles
Gascon's respective books.
C. Other assets of P2,500 and P4,500 in Dela Cruz's and Gascon's
respective books are to be written off.
in Dela Cruz's and
The capital account of the partners after the adjustments will be:
a. Dela Cruz, P769,927.50; Gascon, P897,367.50
b. Dela Cruz, P801,095; Gascon, P890,431.25
C. Dela Cruz,P801,095; Gascon, P853,812.50
d. Dela Cruz, P768,095; Gascon, P853,815

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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.
200. On December 1, 2014, MG and AN are combining their separate businesses to form a partnership. Cash and noncash assets are to be contributed. The noncash assets to be contributed and the liabilities to be assumed are as follows: Accounts Receivable Inventory PPE Accounts Payable MG Book value 250,000 400,000 1,000,000 150,000 A. 1,344,000 B. 1,244,000 C. 3,120,000 D. 2,180,000 Fair value 262,500 450,000 912,500 150,000 AN Book value 200,000 200,000 862,500 112,500 Fair value 195,000 207,500 822,500 112,500 MG and AN are to invest equal amount of cash such that the contribution of MG would be 10% more than the investment of AN. What is the amount of cash presented on the partnership's statement of Financial Position on December 1, 2014?
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