Question
Bruno and Carlos are combining their separate businesses to form a partnership. Cash and non-cash assets are to be contributed for a total capital of
Bruno and Carlos are combining their separate businesses to form a partnership. Cash and non-cash assets are to be contributed for a total capital of P300,000. The non-cash assets to be contributed and the liabilities to be assumed are:
Bruno
Carlos
BV
FMV
BV
FMV
Accounts Receivable
P20,000
P20,000
Inventories
30,000
40,000
P20,000
P25,000
Equipment
60,000
45,000
40,000
50,000
Accounts Payable
15,000
15,000
10,000
10,000
The partners' capital accounts are to be equal after all the contribution of assets and the assumption of liabilities. The amount of cash to be contributed by Bruno is
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Acct 1100 Financial Accounting 1 25 Edition
Authors: Carl S. Warren ,James M. Reeve ,Jonathan E. Duchac
1st Edition
1285558839, 978-1285558837
