Question 2 On March 15, 2014, Edgar admits Danny for an interest on his business. On this date, Edgar's capital accounts show a balance of P158, 400. The following were agreed upon before the formation of the partnership: a) Prepaid expenses of 17,500 and accrued expense of P5,000 are to be recognize b) 5% of the outstanding accounts receivable of Edgar amounting to P100,000 is to be recognize as uncollectible. c) Danny is to be admitted with 1/3 interest in the firm and is to invest cash aside from the P50,000 worth of merchandise. The total capital of the partnership is? How much cash is to be invested by Danny?

Question 2 On March 15, 2014, Edgar admits Danny for an interest on his business. On this date, Edgar's capital accounts show a balance of P158, 400. The following were agreed upon before the formation of the partnership: a) Prepaid expenses of 17,500 and accrued expense of P5,000 are to be recognize b) 5% of the outstanding accounts receivable of Edgar amounting to P100,000 is to be recognize as uncollectible. c) Danny is to be admitted with 1/3 interest in the firm and is to invest cash aside from the P50,000 worth of merchandise. The total capital of the partnership is? How much cash is to be invested by Danny?

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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no.12
Subject: accounting
TRUE OR FALSE
34 How much is capital credited to D at the time of formation of the partnership? To input answers, kindly follow the sample format below(no peso sign, with comma, no space): ex 100,000 S and D formed a partnership by converting both their sole proprietorship business on January 1,2020. Cash and non-cash assets are to be contributed for a total capital of P550,000. The non- cash assets to be contributed and the liabilities to be assumed are: Fair value Book value Fair value P 80,000 Accounts receivable P:40.000 S0,000 P 70,000 Office Supplies Property & 15.000 10.000 25.000 30,000 75,000 40,000 170.000 150,000 equipment Accrued Expenses 30,000 30,000 20.000 20,000 5 and D capital will be in theratio of 40 60.respectively after a the contribution of the assets and the assumption of liabilities
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