Amal asked Umong to join the partnership because his many business contacts are expected to be valuable during expansion. Umong is also contributing P28,000 cash. Abongga is contributing P11,000 cash and marketable securities costing P42,000 to Abongga but are currently worth P57,500. Amal’s investment in the partnership is the Amal Company. He plans to pay off the notes with personal assets. The other partners have agreed that partnership will assume the accounts payable. The Statement of Financial Position for the Jamal Company follows:   * The partners agree that the inventory is worth 85,000, and the equipment is worth half its original cost, and the allowances established for doubtful accounts is correct. COMPUTE THE ASSET OF THE PARTNERSHIP AFTER FORMATION?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On June 30, 2020, Amal, the sole proprietor of the Amal Company, expands the company and establish a partnership with Umong and Abongga. The partners plan to share profits and losses as follows: Amal, 50%; Umong, 25%; and Abongga, 25%. They also agree that the beginning capital balances of the partnership will reflect this same relationship. Amal asked Umong to join the partnership because his many business contacts are expected to be valuable during expansion. Umong is also contributing P28,000 cash. Abongga is contributing P11,000 cash and marketable securities costing P42,000 to Abongga but are currently worth P57,500. Amal’s investment in the partnership is the Amal Company. He plans to pay off the notes with personal assets. The other partners have agreed that partnership will assume the accounts payable. The Statement of Financial Position for the Jamal Company follows:

  * The partners agree that the inventory is worth 85,000, and the equipment is worth half its original cost, and the allowances established for doubtful accounts is correct.

COMPUTE THE ASSET OF THE PARTNERSHIP AFTER FORMATION?

Amal Company
Statement of Financial Position
June 30, 2020
Assets
P 10,000
48,000
Cash
Accounts receivable (net)
Inventory
Equipment (net of accumulated depreciation, P20,000)
72,000
70,000
P 200,000
Total Assets
Liabilities and Capital
P 53,000
Accounts Payable
Notes Payable
Amal, Capital
Total Liabilities and Capital
62,000
85,000
P 200,000
Transcribed Image Text:Amal Company Statement of Financial Position June 30, 2020 Assets P 10,000 48,000 Cash Accounts receivable (net) Inventory Equipment (net of accumulated depreciation, P20,000) 72,000 70,000 P 200,000 Total Assets Liabilities and Capital P 53,000 Accounts Payable Notes Payable Amal, Capital Total Liabilities and Capital 62,000 85,000 P 200,000
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