Scribd
Upload
123 views

Para and Luman: Partnership Investment

1. The document shows the capital contributions and adjustments for partners Bobby and Cobby. Bobby contributed ₱6,300 cash and ₱31,500 inventory. Cobby contributed ₱10,500 cash and ₱10,500 inventory. 2. Adjusting entries were made for each partner's books, including allowance for impairment, accumulated depreciation, and accrued expenses. 3. A final closing entry combined the partners' contributions and adjustments into the capital accounts of the new partnership.

Uploaded by

Daphne Robles
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
123 views

Para and Luman: Partnership Investment

1. The document shows the capital contributions and adjustments for partners Bobby and Cobby. Bobby contributed ₱6,300 cash and ₱31,500 inventory. Cobby contributed ₱10,500 cash and ₱10,500 inventory. 2. Adjusting entries were made for each partner's books, including allowance for impairment, accumulated depreciation, and accrued expenses. 3. A final closing entry combined the partners' contributions and adjustments into the capital accounts of the new partnership.

Uploaded by

Daphne Robles
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 6

Para and Luman

April 15, 20AB


Partnership Investment
Cash ₱ 55,000.00
Furniture (market value) ₱ 44,000.00
Equipment ₱ 165,000.00
L, Capital
P, Capital

2 L, Capital
P, Capital

Additional cash investment for Para Company

3 Agreed Capital
L, Capital

Additional cash investment for Luman Company

4 P, Capital 99,000/ 30% =33,000


L, Capital+ P, Capital 165,000+99,000=264,000
Cash Investment 330,000-264,000=66,000

Partnership Formation
Bobby

1 Bobby, Capital 6,300


Allowance for imparement loss
2 Bobby, Capital 31,500
Inventory
4 Prepaid Expense 8,400
Bobby, Capital

Cobby
1 Cobby, Capital 10,500
Allowance for impairment loss
2 Cobby, Capital 10,500
Inventory
3 Cobby, Capital 8,400
Accumulated Depreciation
5 Cobby, Capital 6,825
Accrued Expense

A. Books of Bobby
Adjusting Entries
1 Bobby, Capital 6,300
Allowance for impairment loss
2 Bobby, Capital 31,500
Inventory
4 Prepaid Expense 8,400
Bobby, Capital
Cash 126,000
Accounts Receivable 105,000
Inventory 42,000
Equipment 42,000
Allowance for impairment loss
Accumulated Depreciation
Accrued Expense
Cobby, Capital

Adjusting Entries
1 Cobby, Capital 10,500
Allowance for impairment loss
2 Cobby, Capital 10,500
Inventory
3 Cobby, Capital 8,400
Accumulated Depreciation
5 Cobby, Capital 6,825
Accrued Expense
Closing Entry
Allowance for impairment loss 10,500
Accumulated Depreciation 8,400
Accrued Expense 6,825
Cobby, Capital 289,275
Cash
Accounts Receivable
Inventory
Equipment

B. Books of Cobby
Adjusting Entries
1 Cobby, Capital 10,500
Allowance for impairment loss
2 Cobby, Capital 10,500
Inventory
3 Cobby, Capital 8,400
Accumulated Depreciation
5 Cobby, Capital 6,825
Accrued Expense
Cash 84,000
Accounts Receivable 63,000
Inventory 126,000
Prepaid Expense 8,400
Allowance for impairment loss .
Accounts Payable
Bobby, Capital

Adjusting Entries
1 Bobby, Capital 6,300
Allowance for impairment loss
2 Bobby, Capital 31,500
Inventory
4 Prepaid Expense 8,400
Bobby, Capital
Closing Entry
Allowance for impairment loss 6,300
Accounts Payable 21,000
Bobby, Capital 254,100
Cash
Accounts Receivable
Inventory
Prepaid Expense

C. Books of the New Partnership


Opening Entry
Cash (126,000+84,000) 210,000
Accounts Receivable(105,000+63,000) 168,000
Inventory(42,000+126,000) 168,000
Equipment 42,000
Prepaid Expense 8,400
Accounts Payable
Allowance for impairment loss(10,500+6,300)
Accumulated Depreciation
Accrued Expense
Cobby, Capital
Bobby, Capital
₱ 165,000.00
₱ 99,000.00

₱ 165,000.00
-₱ 99,000.00
₱ 66,000.00

₱ 275,000.00
-₱ 165,000.00
₱ 110,000.00

6,300

31,500

8,400

10,500 T- Account
#1 ₱ 6,300.00 Unadj. 283,500
10,500 #2 ₱ 31,500.00
Adj. ₱ 254,100.00 #8 8,400
8,400 ₱ 291,900.00 ₱ 291,900.00

6,825
T-Account
#1 10,500 Unadj. 325,500
6,300 #3 8,400
#5 6,825
31,500 #2 10,500
Adj. 289,275
8,400 ₱ 325,500.00 ₱ 325,500.00

10,500
8,400
6,825
289,275

10,500

10,500

8,400

6,825

126,000
105,000
42,000
42,000

10,500

10,500

8,400

6,825
6,300
21,000
254,100

6,300

31,500

8,400

84,000
63,000
126,000
8,400

21,000
16,800
8,400
6,825
289,275
254,100

You might also like