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Question 1: On June 30, 2019, Inhale admits Exhale for an interest in his business. On this date, Inhale's capital account shows a balance of P158,400. The following were agreed upon before the formation of the partnership: Prepaid expenses of P5,000 and accrued expenses of P17,500 are to be recognized. 5% of the P100,000 recorded as outstanding accounts receivables of Inhale is to be recognized as uncollectible. Exhale is to be credited with one-third interest in the partnership and to invest cash aside from the P50,000 worth of merchandise. How much cash is to be invested by Exhale?
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