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On October 20, 2020, CC admits DD for an interest in his business. On this date, CC 's capital account shows a balance of P202,770. The following were agreed upon before the formation of the partnership.
1. Prepaid expenses of P37,500 and accrued expenses of P5,500 are to be recognized.2. 6% of the outstanding accounts receivable of P120,000 of CC is to be recognized as uncollectible.3. DD is to be credited with a 30% interest in the partnership and is to invest cash aside from the P68,000 worth of merchandise.
Problem 1: The amount of cash to be invested by DD and the total capital of the partnership are______, respectively.
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