New Partner A and New Partner B are both proprietor who decided to form a partnership on July 22, 2022. New Partner A contributed cash, inventory and equipment worth P300,000, P500,000, and P800,000, respectively, while New Partner B contributed an equipment and Inventory worth P400,000 of P1,200,000. Both partners agree that the assets contributed were undervalued thereby increasing the value of inventory by 20% and the equipment by 10%. How much is the capital of the New Partnership?
New Partner A and New Partner B are both proprietor who decided to form a partnership on July 22, 2022. New Partner A contributed cash, inventory and equipment worth P300,000, P500,000, and P800,000, respectively, while New Partner B contributed an equipment and Inventory worth P400,000 of P1,200,000. Both partners agree that the assets contributed were undervalued thereby increasing the value of inventory by 20% and the equipment by 10%. How much is the capital of the New Partnership?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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New Partner A and New Partner B are both proprietor who decided to form a partnership on July 22, 2022. New Partner A contributed cash, inventory and equipment worth P300,000, P500,000, and P800,000, respectively, while New Partner B contributed an equipment and Inventory worth P400,000 of P1,200,000. Both partners agree that the assets contributed were undervalued thereby increasing the value of inventory by 20% and the equipment by 10%. How much is the capital of the New Partnership?
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