The following data as of May 1, 2017 were taken from the records of Andre and Andy:
ANDRE ANDY
Cash P 11,000 P 22,354
Accounts receivable 234,536 567,890
Inventories 120,035 260,102
Land 603,000
Building 428,267
Furniture & Fixtures 50,345 34,789
Other Assets 2,000 3,600
Total Assets P1,020,916 P1,317,002
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Accounts Payable P 178,940 P 243,650
Notes Payable 200,000 345,000
Andre, Capital 641,976
Andy, Capital 728,352
Total Liabilities and Capital P1,020,916 P1,317,002
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Andre and Andy agreed to form a partnership by contributing their respective assets and equities subject to the following adjustments:
a) Inventories of P 5,500 and P 6,700 are worthless in Andre’s and Andy’s respective books.
b) Accounts receivable of P 20,000 in Andre’s book and P 35,000 in Andy’s book are uncollectible.
c) Other assets of P 2,000 and P 3,600 in Andre’s and Andy’s respective books are to be written
