Question 1: For Das to obtain a 1/3 interest in the partnership, how much must his cash investment be? Qeustion 2: How much is the capital of Adee upon partnership formation? PLEASE SHOW THE ANSWERS WITH COMPLETE SOLUTION IN A GOOD ACCOUNTING FORM. Adee admitted Das as a partner in a business. The balance sheet of Adee on July 30, 2019 before theadmission of Das shows:Cash31,200Receivables144,000InventoryAccounts PayableAdee, CapitalIn order to establish Das Interest, the partners agreed on the following:- An allowance of doubtful accounts of 2% is to be establishedMerchandise Inventory is to be valued at P242,400216,00074,400316,800Prepaid Expenses of P4,200 and accrued expenses of P4,800 are to be recognized

The partnership comes into existence when two or more persons agree to do the business and share…

Answered: Adee admitted Das as a partner in a…

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 1: For Das to obtain a 1/3 interest in the partnership, how much must his cash investment be?

Qeustion 2: How much is the capital of Adee upon partnership formation?

PLEASE SHOW THE ANSWERS WITH COMPLETE SOLUTION IN A GOOD ACCOUNTING FORM.

Adee admitted Das as a partner in a business. The balance sheet of Adee on July 30, 2019 before the
admission of Das shows:
Cash
31,200
Receivables
144,000
Inventory
Accounts Payable
Adee, Capital
In order to establish Das Interest, the partners agreed on the following:
- An allowance of doubtful accounts of 2% is to be established
Merchandise Inventory is to be valued at P242,400
216,000
74,400
316,800
Prepaid Expenses of P4,200 and accrued expenses of P4,800 are to be recognized

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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