FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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37

On March 1, 20x4, Evan and Helen decide to combine their business and form a partnership. The balance sheets of Evan and Helen on March 1, 20x4 before adjustments: 

 

Evan 

Helen 

Cash…………………………. 

P9,000 

P3,750 

Accounts Receivable……. 

18,500 

13,500 

Inventories………………….. 

30,000 

19,500 

Furniture and fixtures (net). 

30,000 

9,000 

Office equipment (net)….. 

11,500 

2,750 

Prepaid expenses…………. 

6,375 

3,000 

 

P105,375 

P51,500 

Accounts Payable………... 

P45,750 

P18,000 

Evan, Capital………………. 

59,625 

 

Helen, Capital……………... 

 

33,500 

 

P105,375 

P51,500 

  

They agreed to provide 3% for doubtful accounts of their accounts receivables and found Helen’s furniture and fixtures to be under-depreciated by P900. If each partner’s share in equity is to be equal to the net assets invested, the capital account of Evan would be: 

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