--I LOVE YOU ALL-- Again, because of the excellent performance of the

The Story of operations they dissolve the partnership and change the
“Walang Forever” name to ALDUB NATION FOREVER because of the admission
of a new partner, Forever, by purchasing 1/4 interest of
One day, a two friends- AL and DUB because of their each partner for P 400,000. Before Forever enter into the
enthusiasm and eagerness, formed a partnership named partnership, the partners agreed to some adjustment on the
ALDUB Forever Partnership on February 14, 2019. They books of partnership:
dreamed of having a business that will integrate their  Computer equipment is over-depreciated by P
expertise in consultancy services. Through the motivation 10,000
and effort of AL, he organize to establish right away the  Inventory should was over-valued by P12,000.
partnership and after process the requirements to SEC. Early this year, Dub was getting suspicious about Forever
Fortunately-the SEC granted the permit. One of their vision and Al getting personal relationship with each other. And
is to engage in consulting services that will be one of the she thinks that it might affect her investment to the
best firm offering consulting services within the vicinity of partnership. Throughout the week, she thinks of an idea on
Koronadal City. Among their contributions at the start of the how to confront DUB and Forever.
operation includes the following: Dub utterly say at the conference table, together with the
AL DUB partner, one day in a serious meeting.
Cash P250,000 P380,000 “I’m sick and tired of this situation!” exclaimed by Dub “and
Computer Equipment(net) 180,000 I can’t get rid of the idea having you, AL…” pointed at AL
Inventory 100,000 “personal relationship with Forever”.
Building 500,000 “What is this all about??”Worried question of Nation.
Delivery Van 950,000 “I don’t want my investment to struggle in this business”.
As agreed, Al’s computer equipment was revalued at stated Dub “I want to pool out my money and property”.
P160,000 and inventory to P 150,000 while Dub mortgage “Wait, wait…what are you gonna do??!!” Al said
loan balance of P250,000 for his delivery van was assume by exaggeratedly.
the partnership. The partner has agreed on terms of profit “I can’t permit you to do that!!” yelled by Forever.
and loss sharing of equal distribution. All income and “You can’t do nothing against it!.. it’s my investment and I
expenses must be form in cash. have the right to do it my own” stubbornly said by Dub.
“If you want to get out, I want it too!” Nation concluded “it
At the end of the year because of in-demand consulting will be useless if we continue this business with a great
services and satisfying performance shone by the partner, misapprehension with each other and having Al and Forever
they reported a profit of P400,000. The partnership a relationship that is construed to be true and yet you’re not
agreements in dividing the profits are as follows: telling it to us as your business partners, right??! .”
a. AL will be allowed to an annual salary of P100,000 On the same date, due to partner’s incompatible differences
while DUB, P150,000. with each other and could not settle their differences, they
b. Both are allowed to a 15% interest on their decided to wind up and liquidate their interest in the
beginning capital balances. partnership.
c. Any remainder, divided equally.  ½ of Non Cash Assets were realized at a loss of
The partners AL and Dub were happy and overwhelm with P300,000during the 1st realization and;
outcome of their effort in operating the business  P100,000 loss was incurred on the remaining non-
throughout the year. Because of the good results, they were cash assets during the 2nd realizations.
talking about the possibilities of admitting a new partner in The business try to settle down any liabilities and in the
order to make the business grow better and have a bigger event that there is an assets remain to the partnership, they
capitalization for the business partnership. will distribute it base on the result of the positive capital
balance.
On Jan. 1, 2016, they admit Nation and change the At the end of the year, the ALDUB FOREVER NATION
partnership name into ALDUB NATION partnership with an Partnership were totally terminated. They will become part
investment of P200,000 for a 20% interest in the of the history of the business that we will never forget.
partnership. At the end of year 2016, the partnership “WALANG FOREVER…”
reported P 500,000 income and agreed to divide it using
their new respective profit or loss ratio. -Prepare necessary journal entries for each transactions
(Use Non Cash Asset Account representing non cash
assets).