Reference no: EM133016218

Question - The December 31, 2018 balance sheet of Reynante's proprietorship business showed the following:

Cash P20,000

Accounts receivable 35,000

Inventory 40,000

Equipment, net (10 year-useful life) 36,000

Accounts payable 42,000

An audit was required in pursuant to the partnership agreement before the admission of Herbo and Primo. The audit disclosed the following:

The cash include equity investments with a fair value in excess of its recorded cost by P3,000.

The receivable includes P5,000 uncollectible items.

A P1,000 prepayments and P8,000 accrued expense was omitted from the records.

Per agreement: The equipment was depreciated for 2 years but is to be depreciated by additional two years. Herbo and Primo shall contribute cash for their ¼ and 1/5 interest respectively.

Required - Compute the total cash investment of the incoming partners.