A has an existing business and admits B as a partner in the business.Statement of Financial Position accounts of A just before the admission of B show:CashAccounts ReceivableMerchandise inventoryAccounts Payable88,00015,00055,0002,500It was agreed that for purposes of establishing A's interest, the following adjustments be made:. An Allowance for Doubtful Accounts of 5% of accounts receivable is to be set up;. Merchandise inventory is to be valued at P43,000.If B is to invest sufficient cash to obtain 60% interest in the partnership.Compute B's cash contribution.

Name: A has an existing business and admits B as a partner in the business.
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Description: A has an existing business and admits B as a partner in the business.Statement of Financial Position accounts of A just before the admission of B show:CashAccounts ReceivableMerchandise inventoryAccounts Payable88,00015,00055,0002,500It was agreed t

Admission of New Partner There are two different forms of partnership admission, then. A new partner…

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has an existing business and admits B as a partner in the business. tatement of Financial Position accounts of A just before the admission of B show: Cash Accounts Receivable Merchandise inventory 88,000 15,000 55,000

has an existing business and admits B as a partner in the business. tatement of Financial Position accounts of A just before the admission of B show: Cash Accounts Receivable Merchandise inventory 88,000 15,000 55,000

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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