Question
Question C and F formed a partnership. The following are their contributions: C Cash P520,967 Accounts Receivable 83,790 Inventory 60,312 F Land P1,908,300 Building 2,598,000
Question
C and F formed a partnership. The following are their contributions:
C
Cash
P520,967
Accounts Receivable
83,790
Inventory
60,312
F
Land
P1,908,300
Building
2,598,000
Total
C
665,069
F
4,506,300
C
Note Payable
67,984
C, Capital
597,085
F, Capital
4,506,300
Total
C
665,069
F
4,506,300
Additional Information:
- Included in accounts receivable is an account amounting to P22,454, which is deemed uncollectible.
- The inventory has an estimated selling price of P56,354 and estimated costs to sell of P22,567.
- A mortgage of P 250,000 on the land is shouldered by F
- The building is over-depreciated by P323,555
- The building also had a mortgage amounting to P231,356, which was already fully paid by F
- The note payable is net of the discount on note payable amounting to P 15,234. Proper valuation requires the recognition of this discount.
- C and F shall share in profits using the ratio 40:60 and in losses using the ratio 50:50
Question.
1. How much is the adjusted balance of partner C?
2. How much is the adjusted balance of partner F?
3. How much is the NRV of the inventory?
4. If the partnership gains a profit of P250,000, How much is C's share?
5. If the partnership gains a profit of P250,000, How much is F's share?
6. If the partnership incurs a loss of P100,000, how much is C's share?
7. if the partnership incurs a loss of P100,000, how much is F's share?
8. How much note payable should the partnership recognize after its formation?
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