FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Jane and Kathy are joining their separate business to form a partnership. Cash and non-cash assets are to be
contributed for a total capital of P300,000. The non-cash assets are to be contributed and liabilities to be assumed are as
follows:
Jane
Kathy
Book Value Fair Value
Book Value
Fair Value
Receivable
Inventories
Equipment
Payable
P 22,500
22,500
37,500
11,250
P 22,500
33,750
30,000
11,250
P 60,000
67,500
7,500
P67,500
71,250
7,500
The partner's capital accounts are to be equal after all contributions of assets and assumptions of liabilities. Determine
the total assets of the partnership.
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