& On Aug. 1. Isada and Ureta-Reyes pooled their assets to form a partnership with...
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& On Aug. 1. Isada and Ureta-Reyes pooled their assets to form a partnership with the firm to take over their business assets and assume the liabilities. Partnership capitals are to be based on net assets transferred after the following adjustments Profits and losses are allocated equally. The inventory of Ureta-Reyes is to be increased by P4,000; an allowance for doubtful accounts of P1,000 and P1,500 are to be set up in the books of Isada and Ureta-Reyes, respectively, and accounts payable of P4,000 is to be recognized in Isada's books. The individual trial balances on August, before adjustments, follow. Isada Ureta-Reyes Assets Liabilities P75,000 5.000 P113,000 34,500 What is the capital of Isada and Ureta-Reyes after the above adjustments? a. b. Isada, P68,750; U. Reyes, P77,250 Isada, P65,000; U. Reyes, P81,000 Isada, P65,000; U. Reyes, P76,000 Isada, P75,000; U. Reyes, P81,000 d
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