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On January 1, 2021, Exson and Hebs decides to combine their businesses and form a partnership. Statement of financial position on March 1, before adjustments, showed the following: They agreed to provide 3% for doubtful accounts receivable, and also agree that Herbs’ furniture and fixture are under depreciated by P900. If each partner’s share in equity is to be equal to the net assets invested, the capital accounts of Exson and Herbs would be?

On January 1, 2021, Exson and Hebs decides to combine their businesses and form a partnership. Statement of financial position on March 1, before adjustments, showed the following: They agreed to provide 3% for doubtful accounts receivable, and also agree that Herbs’ furniture and fixture are under depreciated by P900. If each partner’s share in equity is to be equal to the net assets invested, the capital accounts of Exson and Herbs would be?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2021, Exson and Hebs decides to combine their businesses and form a partnership. Statement of financial position on March 1, before adjustments, showed the following:


They agreed to provide 3% for doubtful accounts receivable, and also agree that Herbs’ furniture and fixture are under depreciated by P900.
If each partner’s share in equity is to be equal to the net assets invested, the capital accounts of Exson and Herbs would be?

Exson Herbs Cash 9,000 18,500 30,000 3,750 Accounts receivable 13,500 19,500 Inventories Furniture and Fixtures 30,000 9,000 Office Equipment (net) Prepaid Expenses 11,500 2,750 6,375 105,375 3,000 51,500 Total P P Accounts Payable Capital P 45,750 18,000 59,625 33,500 Total P 105,375 51,500
Transcribed Image Text:Exson Herbs Cash 9,000 18,500 30,000 3,750 Accounts receivable 13,500 19,500 Inventories Furniture and Fixtures 30,000 9,000 Office Equipment (net) Prepaid Expenses 11,500 2,750 6,375 105,375 3,000 51,500 Total P P Accounts Payable Capital P 45,750 18,000 59,625 33,500 Total P 105,375 51,500
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