PEDRO, and PABLO share partnership profits and losses in a 7:3 ratio and their October 31, 2021 post-closing trial balance shows: Cash P 30,000.00 Accounts receivable 380,000.00 Inventory 260,000.00 Furniture 120,000.00 Accounts payable (165,000.00) Pedro, capital (350,000.00) Pablo, capital (275,000.00) PEKTO offered to buy for P760,000.00 the partnership’s net assets, except cash, after the assets are restated to their current fair values as follows: accounts receivable, P350,000.00; inventory, P250,000.00; and, furniture, P135,000.00. How much is the adjusted capital balance of Pablo after adjustment of partnership assets A. P282,500.00 B. P267,500.00 C. P367,500.00 D. P332,500.00
PEDRO, and PABLO share
Cash P 30,000.00
Accounts receivable 380,000.00
Inventory 260,000.00
Furniture 120,000.00
Accounts payable (165,000.00)
Pedro, capital (350,000.00)
Pablo, capital (275,000.00)
PEKTO offered to buy for P760,000.00 the partnership’s net assets, except cash, after the assets are restated to their current fair values as follows: accounts receivable, P350,000.00; inventory, P250,000.00; and, furniture, P135,000.00.
How much is the adjusted capital balance of Pablo after adjustment of partnership assets
A. P282,500.00
B. P267,500.00
C. P367,500.00
D. P332,500.00
Step by step
Solved in 2 steps
