Dolfo and Poldo formed a partnership. Dolfo contributed cash of P600,000, desktop computer of P70,000 and printer that cost P30,000. The fair value of computer is 50,000 while the printer has a fair value of P20,000. Dolfo has notes payable on the computer and printer of P10,000 to be assumed by the partnership. Dolfo is to have 60% c

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Dolfo and Poldo formed a partnership. Dolfo contributed cash of P600,000, desktop computer of P70,000 and printer that cost P30,000. The fair value of computer is 50,000 while the printer has a fair value of P20,000. Dolfo has notes payable on the computer and printer of P10,000 to be assumed by the partnership. Dolfo is to have 60% capital interest in the partnership. Poldo contributed P500,000 only. The partners agreed to share in the partnership profits and losses in the ratio of 2:3 for Dolfo and Poldo respectively. How much is the net investment of Dolfo?
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