EEE has been very successful in operating his business for the last five years. His financial statements showed total assets of P380,000 and liabilities of P50,000. He invited FFF to join him by investing an amount enough to give him a 30% interest in the firm. Profit and loss agreement provides 80:20 to EEE and FFF, respectively. Before the formation, the parties agreed to make the following adjustments in the books of EEE: · Allowance for doubtful accounts amounting to P10,000 be established. · The merchandise should be adjusted to include goods out on consignment amounting to P25,000. · Accrued utilities of P2,500 be recognized. How much is the amount to be invested by FFF?
EEE has been very successful in operating his business for the last five years. His financial statements showed total assets of P380,000 and liabilities of P50,000. He invited FFF to join him by investing an amount enough to give him a 30% interest in the firm. Profit and loss agreement provides 80:20 to EEE and FFF, respectively. Before the formation, the parties agreed to make the following adjustments in the books of EEE: · Allowance for doubtful accounts amounting to P10,000 be established. · The merchandise should be adjusted to include goods out on consignment amounting to P25,000. · Accrued utilities of P2,500 be recognized. How much is the amount to be invested by FFF?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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EEE has been very successful in operating his business for the last five years. His financial statements showed total assets of P380,000 and liabilities of P50,000. He invited FFF to join him by investing an amount enough to give him a 30% interest in the firm.
· Allowance for doubtful accounts amounting to P10,000 be established.
· The merchandise should be adjusted to include goods out on consignment amounting to P25,000.
· Accrued utilities of P2,500 be recognized.
How much is the amount to be invested by FFF?
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