Question

1.7 Amie revers Aster and Amerforming a parshin by combining their businesses. Their books show the following: Aster Cash P 72.000 P 30,000 Accounts Receivable 150,000 108,000 Merchandise Inventory 240,000 156,000 Furniture and Fixtures 330,000 102,000 Prepaid Expenses 63.000 21.000 Accounts Payable 366,000 144,000 Aster, Capital 489.000 Amie, Capital 273,000 COURS se or los tner It has been agreed to recognize uncollectible accounts of P7,500 and P5,400 to each party, respectively, and that the furniture and fixtures of Amie are under depreciated by P9,000. If cach partner's share in equity is to be equal to the net assets invested, the capital accounts of Aster and Amie would be 2 P489,000 and P273,000 respectively. b. P481,500 and P276,600 respectively. P481,500 and P258.600, respectively. d. P855.000 and P417,000, respectively. to MC 2-8 A business owned by Antonia was short of cash and Antonia decided to form a partnership with Andrea, who was able to contribute cash twice the interest of Antonia in the new partnership. The assets contributed by Antonia appeared as follows in the statement of financial position of her business: cash, P9,000; accounts receivable, P189,000 with allowance for uncollectible accounts of P6,000; merchandise inventory, P420,000; and store equipment, P150,000 with accumulated depreciation of P15,000. ach.com 0,000 0.000 0,000 Antonia and Andrea agreed that the allowance for uncollectible accounts was inadequate and should be P12,000. They also agreed that the fair value for the inventory is P460,000 and for the store equipment is P140,000. The cash contributed by Andrea into the partnership was A. P 747,000 c. P 1,572,000 b. P 786,000 d. P1,576,000 MC 2-9 to be Almeda and Asistio are combining their separate business to form a partnership. Cash and non-cash assets are to be contributed for a total capital of P600,000. The non-cash assets to be contributed and the liabilities to be assumed are as follows: Almeda Asistio FMV BV FMV Accounts Receivable P 40,000 P 30,000 Merchandise Inventory 60,000 90,000 P 40,000 P 80,000 Equipment 120,000 100.000 80,000 120,000 Accounts Payable 30,000 30.000 20,000 20,000 BV

Answer 1

MC 2-7   Calculation Net Assets Invested of Aster and Ammie

Net Assets of Aster=Assets-(outside Liabilities+uncollectible Accounts+Under depreciation)

=(72000+150000+240000+330000+63000)-(366000+7500)

=855000-373500=481,500 (capital of Aster)

Net Assets of Amie =(30000+108000+156000+102000+21000)-(144000+5400+9000)

=417000-158400=258600 (capital of Amie)

Hence, Option "C" should be right.