Söle Proprietors For partnership, and any deficiency shall be paid in cash. Gabriel and Lucifer decided to combined their respective businesses into a partnership with an agreed total capital of P400,000. The noncash assets contributed by the two parties are as follows: Gabriel Lucifer Accounts receivable Notes receivable Merchandise inventories Furniture Equipment Accounts payable Book value P50,000 10,000 80,000 40,000 30,000 200,000 Fair value Book value Fair value P48,000 10,000 100,000 37,000 25,000 200,000 14,000 P50,000 15,000 P60,000 60,000 70,000 Required:

Söle Proprietors For partnership, and any deficiency shall be paid in cash. Gabriel and Lucifer decided to combined their respective businesses into a partnership with an agreed total capital of P400,000. The noncash assets contributed by the two parties are as follows: Gabriel Lucifer Accounts receivable Notes receivable Merchandise inventories Furniture Equipment Accounts payable Book value P50,000 10,000 80,000 40,000 30,000 200,000 Fair value Book value Fair value P48,000 10,000 100,000 37,000 25,000 200,000 14,000 P50,000 15,000 P60,000 60,000 70,000 Required:

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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Question

partnership, and any deficiency shall be paid in cash.
Problem 3-12
Sole Proprietors Form a Partnership
Gabriel and Lucifer decided to combined their respective businesses into a
partnership with an agreed total capital of P400,000. The noncash assets
contributed by the two parties are as follows:
Gabriel
Lucifer
Accounts receivable
Notes receivable
Merchandise inventories
Furniture
Equipment
Accounts payable
Book value
P50,000
10,000
80,000
40,000
30,000
200,000
Fair value Book value Fair value
P48,000
10,000
100,000
37,000
25,000
200,000
14,000
P50,000
15,000
P60,000
60,000
70,000
Required:
partnership, and
any
deficiency shall be paid in cash.

96
Partnership and Corporation Accou
2. Prepare the balance sheet of Gabriel and Lucifer partnership upon
formation.

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