Partnership Formation (Please help me solve this and explain it so I can study it later, Thanks!)

PROBLEM #1

1.) Question 1:

Using the same information above, except that Melchor invests P200,000 cash (other than those noncash assets mentioned in the previous problem, what would be the new profit and loss ratio of Melchor [assuming that the prot and loss ratio is based on partners initial contribution]? Remove the percentage sign and use up to decimal places after converting your final answer into percentage. Baby and Melchor entered into a partnership in June by investing the following assets: Baby Melchor Cash P300000 Merchandise inventory P900000 Office equipment 500,000 Store equipment l ,100,000 Building 2.000000 The agreement between Baby and Melchor provides that profit and losses are shared 40% and 60% to Baby and Melchor, respectively. The partnership assumes a P400000 real mortgage attached on the building. If Melchor is to receive a capital credit equal to his profit and loss ratio, how much cash must he invest? On June 1, Barry and Manilow decided to combine their businesses and form a partnership. Their balance sheets on this date before adjustments show the following: Barry Manilow Cash P 12,000 P 8,750 Accounts Receivable 18,500 13,500 Merchandise Inventory 27,000 14,500 Store Equipment 36,375 12,000 Office Equipment 1 1,500 2,750 Accounts Payable 45,750 18,000 Capital 59,625 33,500 They agreed to provide 3% for doubtful accounts of their accounts receivable and found Manilow's store equipment under-depreciated by P900. If each partners' share in equity is to be equal to the net assets invested: the capital accounts of Barry would be? Using the same information above, how much is the total liabilities of the partnership immediately after its formation? Using the same information above, what is the total asset of the partnership after its formation? On March 1, 2008, Jesse and James decided to combine Their businesses and form a partnership. Their balance sheets on the same date, before adjustments, showed the following: Jesse James Cash Pi 8,000 P7,500 Accounts receivable 37,000 27,000 Inventories 60,000 39,000 Furniture and xtures, net 60,000 l8,000 Office equipment, net 23,000 5,500 Prepaid rent 12,750 6,000 Total 21 0,750 1 03,000 Accounts payable P9i,500 P36,000 Capital 1 19,250 67,000 Total 21 0,750 1 03,000 They agreed to have the following items recorded in their respective books: a. Provide 2% allowance for doubtful accounts based on receivables b. Jesse's furniture and xtures should be P62,000, while James' ofce equipment is under-depreciated by P500. c. Rent expense previously incurred by Jesse was not recorded amounting to P2000, while salary expense incurred by James was not recorded amounting to Pi,600. d. The market values of the inventories amounted to P59,000 and P42,000 for Jesse and James, respectively. What is the net (debit) credit adjustment to the capital account of James (indicate whether debit or credit adjustment)? Sample final answer: 15000 debit