Mikasa Ackerman and Eren Yeager agreed to form a partnership contributing their respective assets and liabilities subject to the following adjustments: a. Accounts receivable of P50,000 and P750,000 in their respective books are uncollectible. b. Inventories of P27,500 and P33,500 are worthless in their respective books. c. Other assets of P10,000 and P18,000 in Mikasa Ackerman’ and Eren Yeager’s books are to be written off. After considering the partner’s agreement, Mikasa Ackerman’ total liability to be recorded in the new partnership book is, P2,943,250 P1,894,700 P894,700 P1,218,250 How much is the total liabilities of the partnership at formation? P 1,894,700 P 4,837,950 P10,800,590 P 5,962,640 What is the net realizable value of the accounts receivable of Mikasa Ackerman after adjustment? P2,739,450 P2,789,450 P1,122,680 P2,789,450
Mikasa Ackerman and Eren Yeager agreed to form a partnership contributing their respective assets and liabilities subject to the following adjustments: a. Accounts receivable of P50,000 and P750,000 in their respective books are uncollectible. b. Inventories of P27,500 and P33,500 are worthless in their respective books. c. Other assets of P10,000 and P18,000 in Mikasa Ackerman’ and Eren Yeager’s books are to be written off. After considering the partner’s agreement, Mikasa Ackerman’ total liability to be recorded in the new partnership book is, P2,943,250 P1,894,700 P894,700 P1,218,250 How much is the total liabilities of the partnership at formation? P 1,894,700 P 4,837,950 P10,800,590 P 5,962,640 What is the net realizable value of the accounts receivable of Mikasa Ackerman after adjustment? P2,739,450 P2,789,450 P1,122,680 P2,789,450
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is 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, drawings of a partner, etc.
Question
Mikasa Ackerman and Eren Yeager agreed to form a partnership contributing their respective assets and liabilities subject to the following adjustments:
a.Accounts receivable of P50,000 and P750,000 in their respective books are uncollectible.
b. Inventories of P27,500 and P33,500 are worthless in their respective books.
c. Other assets of P10,000 and P18,000 in Mikasa Ackerman’ and Eren Yeager’s books are to be written off.
After considering the partner’s agreement, Mikasa Ackerman’ total liability to be recorded in the new partnership book is,
a.
b. Inventories of P27,500 and P33,500 are worthless in their respective books.
c. Other assets of P10,000 and P18,000 in Mikasa Ackerman’ and Eren Yeager’s books are to be written off.
After considering the partner’s agreement, Mikasa Ackerman’ total liability to be recorded in the new partnership book is,
P2,943,250
P1,894,700
P894,700
P1,218,250
How much is the total liabilities of the partnership at formation?
P 1,894,700
P 4,837,950
P10,800,590
P 5,962,640
What is the net realizable value of the accounts receivable of Mikasa Ackerman after adjustment?
P2,739,450
P2,789,450
P1,122,680
P2,789,450
Transcribed Image Text:After returning from Canada, the best friends, Mikasa Ackerman and Eren Yeager decided to form a
partnership on May 1, 2017. Both are sole proprietors with business accounts appear below:
Cash
Accounts Receivable
Merchandise Inventory
Land
Buildings
Mikasa Ackerman
P55,000
1,172,680
600,175
3,015,000
Eren Yeager
P111,770
2,839,450
1,300,510
2,141,335
173,945
18,000
251,725
10,000
894,700
1,000,000
3,209,880
Furniture and Fixtures
Other Assets
Accounts Payable
Notes Payable
Mikasa Ackerman, Capital
Eren Yeager, Capital
1,218,250
1,725,000
3,641,760
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