Rose Tyler has owned and operated a proprietorship for several years. On January 1, she decides to terminate this business and become a partner in the firm of Tyler and Sigma. Tyler's investment in the partnership consists of Php12,000 in cash, and the following assets of the proprietorship: accounts receivable Php14,000 less allowance for doubtful accounts of Php2,000, and equipment Php20,000 less accumulated depreciation of Php14,000. It is agreed that the allowance for doubtful accounts should be Php3,000 for the partnership. The fair value of the equipment is Php13,500. Determine the capital balance of Rose Tyler in the partnership if the partnership also agrees to assume Tyler's sole proprietorship's liabilities of Php25,000.

Rose Tyler has owned and operated a proprietorship for several years. On January 1, she decides to terminate this business and become a partner in the firm of Tyler and Sigma. Tyler's investment in the partnership consists of Php12,000 in cash, and the following assets of the proprietorship: accounts receivable Php14,000 less allowance for doubtful accounts of Php2,000, and equipment Php20,000 less accumulated depreciation of Php14,000. It is agreed that the allowance for doubtful accounts should be Php3,000 for the partnership. The fair value of the equipment is Php13,500. Determine the capital balance of Rose Tyler in the partnership if the partnership also agrees to assume Tyler's sole proprietorship's liabilities of Php25,000.

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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