Reference no: EM132701989

Question - Rick and Sanchez are combining their separate business to form a partnership.

Cash and non-cash assets are to be contributed for a total capital of P2,400,000. The non-cash assets to be contributed and the liabilities to be assumed are as follows:

Rick Sanchez

BV FMV BV FMV

A/R 160,000 160,000

Inventory 240,000 400,000 160,000 200,000

Equipment 480,000 360,000 320,000 400,000

A/P 120,000 120,000 80,000 80,000

The partners agreed that equipment contributed by Rick is worth P400,000 while of Sanchez is worth 600,000. The partners' capital accounts are to be equal after all the contribution of assets and the assumption of liabilities.

Required - Compute the total non- cash asset of the partnership?