Two sole proprietorship businesses converted to partnership. No revaluation of assets and liabilities required. Lourdes and...

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Two sole proprietorship businesses converted to partnership. No revaluation of assets and liabilities required. Lourdes and Bernadette individually have been in the catering service business for several years. On January 2, 2023, they decided to form a partnership to avoid competition since their business operates in the same locality. Prior to the formation of the two businesses, Lourdes and Bernadette revalued all their existing assets and liabilities. By the time they decided to form the new business venture, they just simply need to close their existing business and invest the same to L&B Catering Services to become partners sharing profits and losses equally. The following are the account balances in their individual books after the revaluations have been recorded. Lourdes Bernadette ASSETS P125,650 P182,500. Cash Accounts Receivable 72,500 61,250 Allowance for Doubtful Accounts (8% of Receivable) (5,800) (4,900) Catering Supplies Inventory 13.450 10,450 Catering Utensils and Equipment 352,500 285,000 Accumulated Depreciation-Utensils and Equipment (126,900) (102,600) Catering Furniture and Fixtures 95,000 85,000 Accumulated Depreciation Furniture and Fixtures (34,200) (30,600) Total Assets P492.200 P 486,100 EQUITIES P24,500 P18,400 Accounts Payable Capital Total Equities 467,700 467,700 P492.200 P486.100 How much is the total capitalization of the partnership? Two sole proprietorship businesses converted to partnership. No revaluation of assets and liabilities required. Lourdes and Bernadette individually have been in the catering service business for several years. On January 2, 2023, they decided to form a partnership to avoid competition since their business operates in the same locality. Prior to the formation of the two businesses, Lourdes and Bernadette revalued all their existing assets and liabilities. By the time they decided to form the new business venture, they just simply need to close their existing business and invest the same to L&B Catering Services to become partners sharing profits and losses equally. The following are the account balances in their individual books after the revaluations have been recorded. Lourdes Bernadette ASSETS P125,650 P182,500. Cash Accounts Receivable 72,500 61,250 Allowance for Doubtful Accounts (8% of Receivable) (5,800) (4,900) Catering Supplies Inventory 13.450 10,450 Catering Utensils and Equipment 352,500 285,000 Accumulated Depreciation-Utensils and Equipment (126,900) (102,600) Catering Furniture and Fixtures 95,000 85,000 Accumulated Depreciation Furniture and Fixtures (34,200) (30,600) Total Assets P492.200 P 486,100 EQUITIES P24,500 P18,400 Accounts Payable Capital Total Equities 467,700 467,700 P492.200 P486.100 How much is the total capitalization of the partnership?

Answer rating: 100% (QA)

Answer The total capitalization of the partnership can be calculated by ... View the full answer