Juan is a proprietor owning the following assets as of June 1, 2022: Cash – P 3,000 Trade Receivables – P 15,000 Inventory – P 20,000 Office equipment P 30,000 Accounts payable – P 10,000 Pedro would like to form a partnership with Juan by investing Cash and Inventory amounting to P 20,000 and P 50,000, respectively. Juan agrees and on June 1, 2022, they formed the partnership. During formation, it was assessed that 5% may be uncollectible. Items in inventory destroyed by rust amounted to P 1,000. The office equipment, meanwhile, was not depreciated for two years. The office equipment has an estimated useful life of six years. After adjusting the books, how much is the total assets of the partnership?

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 20P
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Juan is a proprietor owning the following assets as of June 1, 2022:
Cash – P 3,000
Trade Receivables – P 15,000
Inventory – P 20,000
Office equipment P 30,000
Accounts payable – P 10,000

Pedro would like to form a partnership with Juan by investing Cash and Inventory amounting to P 20,000 and P 50,000, respectively. Juan agrees and on June 1, 2022, they formed the partnership. During formation, it was assessed that 5% may be uncollectible. Items in inventory destroyed by rust amounted to P 1,000. The office equipment, meanwhile, was not depreciated for two years. The office equipment has an estimated useful life of six years.

After adjusting the books, how much is the total assets of the partnership?

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