On August 1, 2020, the business accounts of Peter and Senen appear below: Assets Peter Senen Cash P11,000 P22,354 Accounts receivable 84,536 217,890 Inventories 100,035 240,102 Land 603,000 428,267 Buildings 200,345 384,789 Other Assets 22,000 23,600 Total P1,020,916 P1,317,002 Liabilities and Capital Accounts payable P178,940 P243,650 Notes payable 200,000 345,000 Peter, Capital 641,976 Senen, Capital 728,352 Total P1,020,916 P1,317,002 Peter and Senen agreed to form a partnership contributing their respective assets and liabilities subject to the following adjustments: Accounts receivable of P20,000 and P35,000 are uncollectible in Peter and Senen’s respective books. Inventories of P5,500 and P6,700 are worthless in Peter and Senen’s respective books Other Assets of P2,200 and P3,600 in Peter and Senen’s books are written off. After five days Ethel was offered to join Peter and Senen and will contribute for a 20% interest in the firm. They also agreed to divide profits and losses in the ratio of 4:4:2 same ratio based on their capital credit as agreed upon formation. As a result of the said agreement, as a personal transaction. How much is the capital contribution of Ethel? c. P331,257 b. P342,582 d. P342,582 a. P324,332
On August 1, 2020, the business accounts of Peter and Senen appear below:
Assets Peter Senen
Cash P11,000 P22,354
Inventories 100,035 240,102
Land 603,000 428,267
Buildings 200,345 384,789
Other Assets 22,000 23,600
Total P1,020,916 P1,317,002
Liabilities and Capital
Accounts payable P178,940 P243,650
Notes payable 200,000 345,000
Peter, Capital 641,976
Senen, Capital 728,352
Total P1,020,916 P1,317,002
Peter and Senen agreed to form a partnership contributing their respective assets and liabilities
subject to the following adjustments:
Accounts receivable of P20,000 and P35,000 are uncollectible in Peter and Senen’s respective
books.
Inventories of P5,500 and P6,700 are worthless in Peter and Senen’s respective books
Other Assets of P2,200 and P3,600 in Peter and Senen’s books are written off.
After five days Ethel was offered to join Peter and Senen and will contribute for a 20% interest
in the firm. They also agreed to divide
on their capital credit as agreed upon formation. As a result of the said agreement, as a
personal transaction.
How much is the capital contribution of Ethel?
c. P331,257
b. P342,582
d. P342,582
a. P324,332
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