On October 1, 2005, Steve admits Martin for an interest in his business. On this date, Steve's capital account shows a balance of P174,000. The following were agreed upon before the formation of partnership: a. Prepaid expenses of P21,000 and accrued expenses of P4,500 are to be recognized. b. 5% of the outstanding accounts receivable of Steve amounting to P90,000 is to be recognized uncollectibles. c. Martin is to be credited of 20% interest in the partnership and is to invest cash aside from P36,000 worth of merchandise inventory. Compute for the total capital of the partnership?

As part of the initial investment, Jackson contributes accounts receivable that had a balance of $40,480 in the accounts of a sole proprietorship. Of this amount, $1,308 is deemed completely worthless. For the remaining accounts, the partnership will establish a provision for possible future uncollectible accounts of $655. The amount debited to Accounts Receivable for the new partnership is

Alma, Tina and Carla are partners. They divide profits and losses 30%, 40% and 30%, respectively. On June 30, 2019, they decided to liquidate their partnership because of continuous losses in operation. The following balances of selected accounts were taken from the books of the partnership on this date: Accounts Receivable - Tina Loans Payable - Carla Loans Payable - Alma Alma, Capital Tina, Capital Carla, Capital P24,000 9,600 28,800 118,800 88,800 78,000 On this date, the partnership's assets were P534,400 excluding the receivables from partners and cash of P28,000. The non-cash assets assets were sold at 70% of book value. After the realization, the partnership paid all outside creditors and liquidation expenses of P12,000 and distributed the remaining cash to the partners. 23. How much was cash was distributed to the partners? a. C. b. d. P98,400 P132,000 P178,400 P78,000 000,049 000 214

Bruce and Rachel agree to form a partnership on July 1. Bruce, who has been trading as a sole proprietor, will invest certain business assets at agreed valuations, transfer his business liabilities and contribute sufficient cash to bring his total contribution to a 60% interest over the new business. Details of Bruce's assets and liabilities are given below (please see the attached image) Rachel agrees to bring in inventory with a value of P146,500 and P93,500 in cash for a 40% interest in the partnership.   The partners have agreed on the following: a) capital accounts will remain fixed; b) 12% interest profit computed on capital; c) salaries of P30,000 each for 2019 but will be twice this amount next year and thereafter; d)10% interest charge on partners' drawings made beyond the agreed salaries; and e)remaining profits are to be shared equally.   Directions: a. Prepare two journal entries to set up the partnership  b. Prepare a statement of financial position for the partnership as…