Reference no: EM132810007

Karrie, Mandy and Elise formed a partnership to be named KME Co-Partnership on January 1, 2020. Karrie contributed sufficient cash for & 20% capitalization in the partnership. Mundo contributed an equipment that cost him P 900,000 and accumulated depreciation of P 300,000, This equipment was sold on January 2, 2020 for P 360,000. Mundo has 30% share in the partnership assets and liabilities. Meanwhile Elise contributed the following assets and liabilities.

Cash 60,000
Accounts Receivable 300,000
Inventory 240,000
Property, Plant and Equipment 1,200,000
Accounts Payable 300,000
Mortgage Payable 600,000
Elise Capital 900,000

An allowance for doubtful accounts should be recognize at 20% and inventory must be carried in the partnership books at P300,000. Moreover, an accumulated depreciation must be recognized for P300,000.

Problem 1: What is the cash contributed by Karrie to the partnership?

Problem 2: What is the capital credit of Elise?

Problem 3: What is the total capital of the partnership?