Reference no: EM133047506

Problem - Moira admits Joni as a partner in the business. Balance sheet accounts of Moira just before the admission of July shows: Cash, P43,000, Accounts Receivable, P150,000, Merchandise Inventory, P170,000, and Accounts Payable, P52,000. It was agreed that for purposes of establishing Moira's interest, the following adjustments should be made: 1.) an allowance for doubtful accounts of 3% of accounts receivable is to be established; 2.) merchandise inventory is to be increased by P25,000; and 3.) prepaid expenses of P2600 and accrued liabilities of P4,800 are to be recognized. If Joni is to invest sufficient cash to obtain 25 interest in the partnership, what amount should she contribute to the new business?