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Question - Roy admits Al as a partner in the business. Balance sheet account of Roy on September 30, just before admission of Al show: Cash P15,600 Accounts Receivable 72,000 Merchandise Inventory 108,000 Accounts Payable P37,200 Roy, Capital 158,400 It is agreed that for the purpose of establishing Roy's interest, the following adjustments shall be made: *An allowance for doubtful accounts of 2% is to be established. *Merchandise inventory is to be valued at P121,200. *Prepaid expenses of P2,100 and accrued expenses of P2,400 are to be recognized. Al is to invest sufficient cash to obtain a 1/3 interest in the partnership. How much Al's investment to the partnership?
a. P84,930
b. P105,600
c. P85,830
d. P47,520
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