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Question - Dave and Vine sole proprietorships decided to form a partnership on June 1, 2021. The partnership will take over their assets and assume their liabilities. As of June 1, 2021, the net assets of Dave and Vine are P220,000 and P309375, respectively. The partners agreed on a 25:75 profit and loss ratio. Furthermore, the partners arrive on the following agreements to revalue their assets and liabilities:
1. Dave's inventory is overvalued bv P11,000.
2. An allowance for doubtful account is to be set up in the books of Dave and Vine in the amount of P2,750 and P4,125, respectively.
3. Accrued expenses of P20,250 was not recognized in Vine's books.
Required - How much cash should Dave invest {withdraw} so that their capital interest would be equal to their profit and loss ratio?
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