Reference no: EM132842546
Question - On Jan 1, 2020, H and I formed a partnership called H& I Company with H investing his business and I investing cash for a 60% interest in the partnership. The financial position of H's business as of June 30 appears as follows:
Assets
Cash P98,000
Notes Receivable 60,000
Account Receivable P67,000
Less Allowance for Bad Debts 12,000 55,000
Office Supplies 15,000
Furniture and Fixture P70,000
Less: Accumulated Depreciation 18,000 52,000
Totals P280,000
LIABILITIES AND CAPITAL
Notes Payable P 140,000
Accounts Payable 73,000
H, Capital 67,000
Totals P280,000
The following conditions were agreed upon by both partners:
-Accounts Receivable should have a net realizable value of 85%.
-Furniture was estimated to have a fair value of P43,000.
-The promissory note issued by the partnership is a 12% 90 day note dated June 1 and has not been adjusted for accrued interest.
Required - Additional cash was to be invested by H to maintain his original capital. What is the adjusted capital balance of H?