Snow and Sky are partners who share profits and losses in the ratio of 6:4. On...

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Snow and Sky are partners who share profits and losses in the ratio of 6:4. On March 1, 2023 the following data are available from the books of the partnership. Cash Accounts receivable Inventory Equipment, net Total P80,000 120,000 300,000 500,000 P1,000,000 Accounts payable Snow, capital Sky, capital Snow, drawings Sky, drawings Total P280,000 300,000 500,000 (50,000) (30,000) P1,000,000 The net income of the partnership prior to admission of Shadow is P50,000. Also, the partners agreed to revalue the inventory to P320,000 and equipment to P530,000. Shadow is to be admitted for 25% interest in the partnership by direct purchase from the partners for P250,000. How much capital is credited to Shadow? Snow and Sky are partners who share profits and losses in the ratio of 6:4. On March 1, 2023 the following data are available from the books of the partnership. Cash Accounts receivable Inventory Equipment, net Total P80,000 120,000 300,000 500,000 P1,000,000 Accounts payable Snow, capital Sky, capital Snow, drawings Sky, drawings Total P280,000 300,000 500,000 (50,000) (30,000) P1,000,000 The net income of the partnership prior to admission of Shadow is P50,000. Also, the partners agreed to revalue the inventory to P320,000 and equipment to P530,000. Shadow is to be admitted for 25% interest in the partnership by direct purchase from the partners for P250,000. How much capital is credited to Shadow?

Answer rating: 100% (QA)

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