The partnership of Pepito and Elsa was formed on March 31, 2019. At that date, Pepito invested
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The partnership of Pepito and Elsa was formed on March 31, 2019. At that date, Pepito invested P50,000 cash and office equipment valued at P80,000. Elsa invested P70,000 cash, merchandise valued at P110,000 and furniture valued at P100,000 subject to a notes payable of P30,000 (which the partnership assumes). The partnership provides that Pepito and Elsa share profits and fosses 25:75, respectively. The agreement further provides that the partners should initially have, an equal interest in the partnership capital. Under the goodwill and the bonus method, what is the total capital of the partners after the formation?
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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