Reference no: EM132817873

Karrie, Mundoand Eliseformed a partnership to be named KME Co-Partnership on January 1, 2020. Karriecontributed sufficientcash for 20% capitalization in the partnership. Mundocontributed an equipment that cost himP 900,000 and accumulated depreciation of P 300,000, This equipment was sold on January 2, 2020 for P 360,000. Mundohas 30% share in the partnership assets andliabilities.

Meanwhile Elise contributed the following assets and liabilities.

Cash 60,000
Accounts Receivable 300,000
Inventory 240,000
Property, Plant and Equipment 1,200,000
Accounts Payable 300,000
Mortgage Payable 600,000
Elise Capital 900,000

An allowance for doubtful accounts should be recognize at 20% and inventory must be carried in the partnership books at P300,000. Moreover, an accumulated depreciation must be recognizedfor P300,000.

Problem 1: What is the cash contributed by Karrie to the partnership?

Problem 2: What is the capital credit of Elise?

Problem 3: What is the total capital of the partnership?