Reference no: EM132629913

Question - The statement of financial position as of July 31, 2012, for the business owned by Katniss Everdeen, shows the following assets and liabilities:

Cash P50,000

Furniture and fixtures P164,000

Accounts receivable 134,000

Accounts Payable 28,800

Merchandise inventory 220,000

It is estimated that 5% of the receivables will prove uncollectible. The cash balance includes a 1,000 investment shares classified as fair value through profit and loss recorded at its cost of P 8,000. The shares last sold on the market were at P 21.50 per share. Merchandise inventory includes obsolete items costing P 20,000 that will probably realized only P 4,000. Depreciation has never been recorded; however, the furniture and fixtures are two years old, have estimated total life of 10 years and would cost P 240,000 if purchased new. Prepaid items amount to P 7,000. Peeta Mellark is to be admitted as a partner upon investing P 200,000 cash and P 100,000 merchandise.

Required - How much capital is to be credited to Katniss Everdeen upon formation of the partnership?