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Partnership Accounting Formative Assessment Requirement 1: Journal Entry To Record The Contribution of The Partners Jenny's Contribution

The document provides information on the initial contributions and capital accounts of partners Jenny, Kenny, and Lenny when forming a partnership. Jenny contributed $40,000 cash and $60,000 equipment for a $100,000 capital account. Kenny contributed $60,000 cash, $10,000 inventory, $180,000 equipment, and had a $50,000 mortgage on equipment for a $200,000 capital account. Later, Lenny was admitted and contributed $175,000 cash in exchange for a $110,000 capital account, with the remainder distributed to Jenny and Kenny based on their ownership percentages. The schedule shows account balances, transactions, and safe payments distributed to the partners.

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172 views2 pages

Partnership Accounting Formative Assessment Requirement 1: Journal Entry To Record The Contribution of The Partners Jenny's Contribution

The document provides information on the initial contributions and capital accounts of partners Jenny, Kenny, and Lenny when forming a partnership. Jenny contributed $40,000 cash and $60,000 equipment for a $100,000 capital account. Kenny contributed $60,000 cash, $10,000 inventory, $180,000 equipment, and had a $50,000 mortgage on equipment for a $200,000 capital account. Later, Lenny was admitted and contributed $175,000 cash in exchange for a $110,000 capital account, with the remainder distributed to Jenny and Kenny based on their ownership percentages. The schedule shows account balances, transactions, and safe payments distributed to the partners.

Uploaded by

Kyo Tie
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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PARTNERSHIP ACCOUNTING FORMATIVE ASSESSMENT

Requirement 1: Journal entry to record the contribution of the partners


 Jenny’s contribution
Cash P 40,000.00
Equipment 60,000.00
Jenny’s Capital P 100,000.00

 Kenny’s Contribution
Cash P 60,000.00
Inventory 10,000.00
Equipment 180,000.00
Mortgage on Equipment P 50,000.00
Kenny’s Capital 200,000.00

Requirement 2: Journal entry to record the admission of Lenny


 Admission of Lenny
Cash P 175,000.00
Capital, Lenny P 110.000.00
Capital, Jenny (P175,000-110,000  2/5) 26,000.00
Capital, Kenny (P175,000-110,000  3/5) 39,000.00

* Computation of Lenny’s Capital


Jenny Kenny
Beginning Capital Balance P 100,000.00 P 200,000.00
Interest on Capital Balance (10%) 10,000.00 20,000.00
Annual Salary 15,000.00 20,000.00
Remainder 48,000.00 72,000.00
Ending Capital Balance P 173,000.00 P 312,000.00

Jenny Ending Capital Balance P 173,000.00


Kenny Ending Capital Balance 312,000.00
Lenny Contribution 175,000.00
Total P 660,000.00
Multiply by: Interest 1/6
Capital of Lenny P 110,000.00
Partnership of Jenny, Kenny and Lenny
SCHEDULE OF SAFE PAYMENTS
January 31, 2023

Cash Notes Property, Plant Liabilities Jenny Kenny Lenny

receivable & Equipment (30%) (50%) (20%)


Balances P 160,000.00 P 50,000.00 P 700,000.00 P 110,000.00 P 200,000.00 P 400,000.00 P 200,000.00

Partner Loans ( 50,000.00) ( 50,000.00)

Sale of assets, January 2023 210,00.00 ( 180,000.00) 9,000.00 15,000.00 6,000.00

Payment of liabilities ( 110,000.00) ( 110,000.00)

Loss on other assets ( 520,000.00) ( 156,000.00) ( 260,000.00) ( 104,000.00)

Safe payment to partners P 260,000.00 P 0 P 0 P 0 P 53,000.00 P 105,000.00 P 102,000.00

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