A business owned by Mel Madrigal was short of cash and she decided to form a partnership with Gel Panganiban, who was able to contribute cash twice (2x) the interest of Mel in the new partnership. The assets contributed by Mel appeared as follows in the balance sheet of her business: Cash, P4,500; Accounts Receivable P94,500; Allowance for doubtful accounts of P3,000; Inventory P210,000; Store equipment P75,000 with an accumulated depreciation of P7,500. Mel and Gel agreed that the allowance for doubtful accounts was inadequate and should be P5,000. They also agreed that the fair value for the inventory is P230,000 and P60,000 for the store equipment. What is the cash contributed by Gel into the partnership was ? what is the amount?
A business owned by Mel Madrigal was short of cash and she decided to form a partnership with Gel Panganiban, who was able to contribute cash twice (2x) the interest of Mel in the new partnership. The assets contributed by Mel appeared as follows in the balance sheet of her business: Cash, P4,500; Accounts Receivable P94,500; Allowance for doubtful accounts of P3,000; Inventory P210,000; Store equipment P75,000 with an accumulated depreciation of P7,500. Mel and Gel agreed that the allowance for doubtful accounts was inadequate and should be P5,000. They also agreed that the fair value for the inventory is P230,000 and P60,000 for the store equipment. What is the cash contributed by Gel into the partnership was ? what is the amount?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- A business owned by Mel Madrigal was short of cash and she decided to form a
partnership with Gel Panganiban, who was able to contribute cash twice (2x) the interest of Mel in the new partnership.
The assets contributed by Mel appeared as follows in the balance sheet of her business:
Cash, P4,500;
Allowance for doubtful accounts of P3,000;
Inventory P210,000;
Store equipment P75,000 with an
Mel and Gel agreed that the allowance for doubtful accounts was inadequate and should be P5,000. They also agreed that the fair value for the inventory is P230,000 and P60,000 for the store equipment.
What is the cash contributed by Gel into the partnership was ? what is the amount?
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