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Ben admits Joel as a partner in his shoe-making business. Accounts in the ledger for Ben on October 15, 2019, just before the admission of
Ben admits Joel as a partner in his shoe-making business. Accounts in the ledger for Ben on October 15, 2019, just before the admission of Joel, show the following balances: Cash P13.600 A/R P28,400 Inventory P40,000 Accounts Payable P16,000 Ben, Capital P66,000 It is agreed that for purposes of establishing Ben's interest, the following adjustments shall be made: a) An allowance for doubtful accounts of 6% of accounts receivables is to be established b) The inventory is to be valued at P46,000 c) Prepaid salary expenses of P1,200 and accrued rent expense of P1,600 are to be recognized Joel is to invest sufficient cash to obtain a 20% interest in the partnership. Required: What is the amount of cash to be invested by Joel
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