Anna and Ben formed a partnership. Anna contributed cash of P786,000 and office equipment costing P378,000. The equipment had been used in her sole proprietorship and had been 70% depreciated. The agreed value of the equipment is P104,000. Anna also has a note payable of P84,000 that will be assumed by the partnership. Ben contributed only the merchandise inventory from his sole proprietorship carried in the books at P650,000 but with fair value of P630,000. The partnership agreed on a profit and loss ratio of 50% each. How much is Anna's capital immediately after the partnership formation?

Anna and Ben formed a partnership. Anna contributed cash of P786,000 and office equipment costing P378,000. The equipment had been used in her sole proprietorship and had been 70% depreciated. The agreed value of the equipment is P104,000. Anna also has a note payable of P84,000 that will be assumed by the partnership. Ben contributed only the merchandise inventory from his sole proprietorship carried in the books at P650,000 but with fair value of P630,000. The partnership agreed on a profit and loss ratio of 50% each. How much is Anna's capital immediately after the partnership formation?

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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