Gilmore agree to join with Raymond and set up an internet café. The following are the investments

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Question:

Gilmore agree to join with Raymond and set up an internet café. The following are the investments of the partners:

1. Gilmore will invest ten sets of computers and a printer unit with a total list price of P275,000 but the cash price is only P260,000. He will also invest furniture and fixtures with a cost price of P58,000 less accumulated depreciation of P8,000. Fair market value of this is only P40,000.

2. Raymond will put up enough cash to make the total assets P500,000.

3. They further agree to recognize bonus so that both partners will have an interest over the partnership.

Direction:

a. Record the actual contribution of Gilmore.

b. Record the investment of Raymond including the bonus transfer from Gilmore.