Question
Pedro admits Takyo as a partner in business. Accounts in the ledge r for Pedro on November 30, 2016 , just before the admission of
CashP 26,000Accounts payableP 62,000
Accounts receivable 120,000Pedro, capital 264,000
Merchandise inventory 180,000
It is agreed that for purposes of establishing Pedros interest the following adjustments should be made:
1. An allowance for doubtful accounts of 2% of accounts receivable is to be established.
2. The merchandise inventory is to be valued at P202,000.
3. Prepaid expenses of P6,500 and accrued liabilities of P4,000 are to be established.
Takyo is to invest sufficient funds in order to receive a 1/3 interest in the partnership. How much must Takyo contribute?
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