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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On March 1, 20x4, Evan and Helen decide to combine their business and form a partnership. The
|
|
Evan |
Helen |
|
Cash…………………………. |
P9,000 |
P3,750 |
|
|
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-
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