#6.docx - Problem#6 A Sole Proprietorship and an Individual with No Business Form a Partnership On Apr 8 2018 Tolentino who has her own retail business

#6.docx - Problem#6 A Sole Proprietorship and an Individual...

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Problem #6A Sole Proprietorship and an Individual with No Business Form a PartnershipOn Apr 8, 2018, Tolentino who has her own retail business and Tan, decided to form a partnership wherein they will divide profits in the ratio of 40:60, respectively. The statement of financial position of Tolentino is as follows:Tolentino MarketingStatement of Financial PositionApril 8, 2018AssetsCashP4000Accounts ReceivableP160000Less: Allowance for Uncollectible Accounts16000144000Inventory200000EquipmentP50000Less: Accumulated Depreciation1000040000Total AssetsP388000Liabilities and CapitalAccounts PayableP36000Tolentino, Capital352000Total Liabilities and CapitalP388000Conditions agreed upon before the formation of the partnership:a.The accounts receivable of Tolentino is estimated to be 70% realizable.b.The accumulated depreciation of the equipment will be increased by P10000c.The accounts payable will be assumed by the partnership.
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