Books of the Partnership

1
Particulars Debit Credit
Cash 280,000.00
Inventory 510,000.00
Land 650,000.00
Notes Payable 350,000.00
Froilan Labausa, Capital 1,090,000.00
To record the investment of Froilan Labausa

2
Cash 1,090,000.00
Rosalie Balhag, Capital 1,090,000.00
To record the investment of Rosalie Balhag

Computations: Book Adjusted

Cash 280,000.00 280,000.00
Inventory 600,000.00 510,000.00
Land 650,000.00 1,350,000.00
Notes Payable (350,000.00) (350,000.00)
Froilan Labausa, Capital ₱1,790,000.00
 Books of Sabio
Particulars Debit Credit
Accounts Receivable 360,000.00
Equipment 400,000.00
Allowance for Uncollectible Accounts 54,000.00
Sabio, Capital 706,000.00
To record the investment of Sabio
 Books of the Partnership
1
Particulars Debit Credit
Cash 1,260,000.00
Equipment 360,000.00
Notes Payable 120,000.00
Gogola, Capital 1,500,000.00
To record the investment of Gogola

2
Cash 900,000.00
Paglinawan, Capital 900,000.00
To record the investment of Paglinawan

Computation:
Gogola is to have 60% capital interest in the partnership.
900,000/40%= 2,250,000 x 60%= 1,350,000
Gogola, Capital ₱1,350,000.00
 Books of the Partnership
1
Particulars Debit Credit
Cash 1,110,000.00
Equipment 360,000.00
Notes Payable 120,000.00
Gogola, Capital 1,350,000.00
To record the investment of Gogola

2
Cash 900,000.00
Paglinawan, Capital 900,000.00
To record the investment of Paglinawan

Gogola should make a withdrawal of 150,000

 Books of the Partnership
1
Particulars Debit Credit
Cash 300,000.00
Land 280,000.00
Calaguas, Capital 580,000.00
To record the investment of Calaguas

2
Cash 100,000.00
Building 520,000.00
Mortgage Payable 400,000.00
Dela Cruz, Capital 220,000.00
To record the investment of Dela Cruz

Computations: Book Adjusted

1
Cash 300,000.00 300,000.00
Land 280,000.00 450,000.00
Calaguas, Capital 580,000.00

2
Cash 100,000.00 100,000.00
Building 520,000.00 600,000.00
Notes Payable (400,000.00) (400,000.00)
Dela Cruz, Capital 220,000.00
 Books of the Partnership

Cash 766,000.00
Accounts Receivable (net) 150,000.00
Allowance for Uncollectible Accounts 10,000.00
Inventory 460,000.00
Equipment (net) 124,000.00
Accounts Payable 30,000.00
Espanol, Capital 730,000.00
Quino, Capital 730,000.00
 Fish R' Us
Statement of Financial Position
January 1, 2016

Assets
Current Assets
Cash ₱766,000.00
Accounts Receivable (net) 140,000.00
Inventory 460,000.00 ₱1,366,000.00
Non-Current Assets
Equipment 124,000.00
Total Assets ₱1,490,000.00

Liabilities and Owner's Equity

Liabilities
Accounts Payable ₱30,000.00
Owner's Equity
Espanol, Capital ₱730,000.00
Quino, Capital 730,000.00 1,460,000.00
Total Liabilities and Owner's Equity ₱1,490,000.00
 Books of Tolentino
1
Particulars Debit Credit
Tolentino, Capital 42,000.00
Allowance for Uncollectible Accounts 32,000.00
Accumulated Depreciation 10,000.00
To record the adjustments to Tolentino's Capital

2
Accounts Payable 36,000.00
Allowance for Uncollectible Accounts 48,000.00
Accumulated Depreciation 20,000.00
Tolentino, Capital 310,000.00
Cash 4,000.00
Accounts Receivable 160,000.00
Inventory 200,000.00
Equipment 50,000.00
To close the books of Tolentino
 Books of the Partnership
1
Particulars Debit Credit
Cash 4,000.00
Accounts Receivable 160,000.00
Inventory 200,000.00
Equipment 50,000.00
Accounts Payable 36,000.00
Allowance for Uncollectible Accounts 48,000.00
Accumulated Depreciation 20,000.00
Tolentino, Capital 310,000.00
To record the investment of Tolentino

2
Cash 465,000.00
Tan, Capital 465,000.00
To record the investment of Tan

Computations:
a. Accounts Receivable, net per ledger 144,000.00
Accounts Receivable, as agreed
(160,000 x 70%) 112,000.00
Increase in Allowance for Uncollectible Accounts ₱32,000.00

b. Increase in Accumulated Depreciation ₱10,000.00

c. Accounts Payable ₱36,000.00

Net effect of adjustments on Capital:

Increase in Allowance for Uncollectible Accounts (32,000.00)
Increase in Accumulated Depreciation (10,000.00)
Decrease in Capital -₱42,000.00

d. Tolentino, Capital before adjustment 352,000.00

Net Adjustments to Capital (42,000.00)
Tolentino, Capital after adjustment ₱310,000.00
Divided by Tolentino's Profit/Loss Sharing Ratio 40%
Total Capital 775,000.00
Multiplied by Tan's by Profit/Loss Sharing Ratio 60%
Tan, Capital ₱465,000.00