How much daisy must contribute to the new partnership

Assignment Help Financial Accounting

Reference no: EM132770101

Problem 1: Maria admits Daisy as a partner in the business. Financial position accounts of Maria on September 30, just before admission of Daisy show: Cash, P52,000; Accounts Receivable, P240,000; Merchandise Inventory, P360,000; Accounts Payable of P124,000. It is agreed that for purposes of establishing Maria's interest, the following adjustments shall be made: (1) An allowance for doubtful accounts of 3% is to be established (2) Merchandise inventory is to be adjusted upward by P50,000 and (3) Prepaid expenses of P7,000 and accrued liabilities of P8,000 are to be recognized. Daisy is to invest sufficient cash to obtain 2/5 interest in the partnership. How much Daisy must contribute to the new partnership?

A. P190,000

B. P352,960

C. P379,867

D. P380,000

Reference no: EM132770101

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