What is the capital balance of lika at december

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Question - Geran and Lika are lawyer's who have been operating their own separate practices as sole proprietors. They decided to combine the two firms as a partnership on January 3, 2010. The following assets were contributed by each:

 

Geran

Lika

Cash

P350,000

P350,000

Trade receivables

787,500

665,000

Equipment

122,500

133,000

Fixtures


161,000

The partners agreed to split profits on the basis of gross cash collections from billing generated from the clients. During 2010, Geran's clients paid the firm a total of P5,250,000 and Lika's clients paid P5,687,500. Expenses for the year were P3,780,000 of which P1,680,000 were attributable to Geran and the balance to Lika. During 2010 Lika withdrew P2,625,000 each for personal needs and contributed an additional computer valued at P77,000.

Required - What is the capital balance of Lika at December 31, 2010?

a. P2,937,900

b. P2,482,900

c. P3,112,900

d. P2,016,000

Reference no: EM133184658

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