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Question - On June 18, 2018, Tried admits Me for an interest in his business. On this date, Tried's capital account shows a balance of Php158,400. The following were agreed upon before the formation of the partnership:
prepaid expenses of Php 17,500 and accrued expenses of Php5,000 are to be recognized.
5% of the outstanding accounts receivable of Tried amounting to Php100,000 is to be recognized as uncollectibles.
Partner Me is be credited with a 1/3 interest in the partnership and is to invest cash aside from the Php50,000 worth of merchandise.
Required - Compute the amount of cash to be invested by partner Me and the total capital of the partnership and prepare journal entries in the books of the partnership and in the books of Tried to close the accounts.
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