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On April 8, 2010, Pascua who has her own retail business and Dela Cruz, decided to form a partnership wherein they will divide profits in the ration of 40:60, respectively. The statement of financial position of Pascua is as follows: PASCUA MARKETING Balance Sheet April 8, 2010 ASSETS Cash PhP 4,000.00 Accounts Receivable PhP 160,000.00 16,000.00 Less: Allowance for Uncollectible 144,000.00 Accounts 200,000.00 Merchandise Inventory Equipement Less: Accumulated Depreciation TOTAL ASSETS PhP 50,000.00 10,000.00 40,000.00 PhP 388,000.00 LIABILITIES AND CAPITAL Accounts Payable Pascua, Capital PhP 36,000.00 352,000.00 PhP 388,000.00 TOTAL LIABILITIES AND CAPITAL Conditions agreed upon before the formation of the partnership: A. The accounts receivable of Pascua is estimated to be 70% realizable. B. The accumulated depreciation of the equipment will be increased by PhP 10,000. c. The accounts payable will be assumed by the partnership D. The capital of the partnership is based on the adjusted capital balance of Pascua. Dela Cruz is to contribute cash in order to make the partner's capital balances proportionate to the profit and loss ratio. E. The partnership will operate under the business name of 'Pascua & Dela CruzMerchandising'. Tasks: 1. Record the necessary journal entries of each partner's adjusted account investments. 2. Prepare the opening journal entries in the new books of the partnership 3. Prepare the partnership's statement of financial position as at the date of formation of the partnership.

On April 8, 2010, Pascua who has her own retail business and Dela Cruz, decided to form a partnership wherein they will divide profits in the ration of 40:60, respectively. The statement of financial position of Pascua is as follows: PASCUA MARKETING Balance Sheet April 8, 2010 ASSETS Cash PhP 4,000.00 Accounts Receivable PhP 160,000.00 16,000.00 Less: Allowance for Uncollectible 144,000.00 Accounts 200,000.00 Merchandise Inventory Equipement Less: Accumulated Depreciation TOTAL ASSETS PhP 50,000.00 10,000.00 40,000.00 PhP 388,000.00 LIABILITIES AND CAPITAL Accounts Payable Pascua, Capital PhP 36,000.00 352,000.00 PhP 388,000.00 TOTAL LIABILITIES AND CAPITAL Conditions agreed upon before the formation of the partnership: A. The accounts receivable of Pascua is estimated to be 70% realizable. B. The accumulated depreciation of the equipment will be increased by PhP 10,000. c. The accounts payable will be assumed by the partnership D. The capital of the partnership is based on the adjusted capital balance of Pascua. Dela Cruz is to contribute cash in order to make the partner's capital balances proportionate to the profit and loss ratio. E. The partnership will operate under the business name of 'Pascua & Dela CruzMerchandising'. Tasks: 1. Record the necessary journal entries of each partner's adjusted account investments. 2. Prepare the opening journal entries in the new books of the partnership 3. Prepare the partnership's statement of financial position as at the date of formation of the partnership.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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3:25 M ở A X ll 16 ull 71% i Partnership For.. PARTNERSHIP FORMATION A SOLE PROPRIETORSHIP AND AN IINDIVIDUAL WITH NO BUSINESS FORM A PARTNERSHIP On April 8, 2010, Pascua who has her own retail business and Dela Cruz, decided to form a partnership wherein they will divide profits in the ration of 40:60, respectively. The statement of financial position of Pascua is as follows: PASCUA MARKETING Balance Sheet April 8, 2010 ASSETS Cash PhP 4,000,00 PhP 160,000.00 16,000.00 Accounts Receivable Less: Allowance for Uncollectible 144,000.00 Accounts Merchandise Inventory Equipement Less: Accumulated Depreciation 200,000.00 50,000.00 10,000.00 PhP 40,000.00 PhP 388,0000.00 TOTAL ASSETS LIABILITIES AND CAPITAL Accounts Payable PhP 36,000.00 352,000.00 Pascua, Capital TOTAL LIABILITIES AND CAPITAL PhP 388.000.00 Conditions agreed upon before the formation of the partnership: A. The accounts receivable of Pascua is estimated to be 70% realizable. B. The accumulated depreciation of the equipment will be increased by PhP 10,000. C. The accounts payable will be assumed by the partnership D. The capital of the partnership is based on the adjusted capital balance of Pascua. Dela Cruz is to contribute cash in order to make the partner's capital balances proportionate to the profit and loss ratio. E. The partnership will operate under the business name of 'Pascua & Dela CruzMerchandising'. Tasks: 1. Record the necessary journal entries of each partner's adjusted account investments. 2. Prepare the opening journal entries in the new books of the partnership 3. Prepare the partnership's statement of financial position as at the date of formation of the partnership. II
Transcribed Image Text:3:25 M ở A X ll 16 ull 71% i Partnership For.. PARTNERSHIP FORMATION A SOLE PROPRIETORSHIP AND AN IINDIVIDUAL WITH NO BUSINESS FORM A PARTNERSHIP On April 8, 2010, Pascua who has her own retail business and Dela Cruz, decided to form a partnership wherein they will divide profits in the ration of 40:60, respectively. The statement of financial position of Pascua is as follows: PASCUA MARKETING Balance Sheet April 8, 2010 ASSETS Cash PhP 4,000,00 PhP 160,000.00 16,000.00 Accounts Receivable Less: Allowance for Uncollectible 144,000.00 Accounts Merchandise Inventory Equipement Less: Accumulated Depreciation 200,000.00 50,000.00 10,000.00 PhP 40,000.00 PhP 388,0000.00 TOTAL ASSETS LIABILITIES AND CAPITAL Accounts Payable PhP 36,000.00 352,000.00 Pascua, Capital TOTAL LIABILITIES AND CAPITAL PhP 388.000.00 Conditions agreed upon before the formation of the partnership: A. The accounts receivable of Pascua is estimated to be 70% realizable. B. The accumulated depreciation of the equipment will be increased by PhP 10,000. C. The accounts payable will be assumed by the partnership D. The capital of the partnership is based on the adjusted capital balance of Pascua. Dela Cruz is to contribute cash in order to make the partner's capital balances proportionate to the profit and loss ratio. E. The partnership will operate under the business name of 'Pascua & Dela CruzMerchandising'. Tasks: 1. Record the necessary journal entries of each partner's adjusted account investments. 2. Prepare the opening journal entries in the new books of the partnership 3. Prepare the partnership's statement of financial position as at the date of formation of the partnership. II
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