The following transactions of Best Pizza owned by Reyes, Ortiz and Flores, took place from March 1 to May 31, 2019 March 1 Reyes who owns an ice cream parlor invested cash of P80,000 and merchandise costing P120,000 but with a fair value of P70,000.
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The following transactions of Best Pizza owned by Reyes, Ortiz and Flores, took place from March 1 to May 31, 2019
March 1 Reyes who owns an ice cream parlor invested cash of P80,000 and merchandise costing P120,000 but with a fair value of P70,000.
Customers' accounts of P50,000 were also taken over by the partnership at its realizable value of 80%. (Recognize an allowance for
doubtful accounts for 20% of cost)
Ortiz invested cash of 40,000 and pieces of furniture costing 150,000 which the partners agree to be 50% depreciated to arrive at its fair
value.
May 1 Flores an expert in pizza making invested imported cooking equipment costing P350,000 but which fair value drop by 40% of its cost flores
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