On April 1, 2020, Abrenica and Banggayan pooled their assets to form a partnership, with the firm to take over their business assets and assume the liabilities. Partners capitals are to be based on net assets transferred after the following adjustments: a. Banggayan inventory is to be increased by P21,000; b. Allowance for doubtful accounts of P7,000 and P10,500 are to be set up in the books of Abrenica and Banggayan, respectively; c. Accounts payable of P28,000 is to be recognized on Abrenica's books. The individual trial balances on April 1, 2020, before adjustments follow: Abrenica Banggayan P525,000 35,000 490,000 Assets P931,000 241,500 549,500 Liabilities Capital

On April 1, 2020, Abrenica and Banggayan pooled their assets to form a partnership, with the firm to take over their business assets and assume the liabilities. Partners capitals are to be based on net assets transferred after the following adjustments: a. Banggayan inventory is to be increased by P21,000; b. Allowance for doubtful accounts of P7,000 and P10,500 are to be set up in the books of Abrenica and Banggayan, respectively; c. Accounts payable of P28,000 is to be recognized on Abrenica's books. The individual trial balances on April 1, 2020, before adjustments follow: Abrenica Banggayan P525,000 35,000 490,000 Assets P931,000 241,500 549,500 Liabilities Capital

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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