EXERCISE 1 PAGE 54

A Oct 2 Initial investment were as follows: Bing - P500,000; Nona - P300,000

Oct 4 Nona made an additional investment of P200,000
Oct 31 As managing partners, both are allowed to withdraw P10,000 at the end of ea
Dec 15 The partnership gets a loan from Bing, P50,000
Dec 31 A net profit of P300,000 was reported at the end of the 4th quarter which wa

B Initial investment were as follows: Bing - P500,000; Nona - P300,000

As managing partners, both are allowed to withdraw P10,000 at the end of each mont
Profits is to be shared equally

C Bing and Nona, Drawing balances: Cr P120,000

Bing, Drawing 120,000.00

Nona, Drawing 120,000.00
Bing, Capital
Nona, Capital

D Bing and Nona Partnership

Statement of Changes in Partners' Equity
For the last quarter ending December 31, 2024
Bing
Capital, October 1, 2024 500,000.00
Additional Investment -
Total 500,000.00
Share in net income 150,000.00
Personal Drawings (30,000.00)
Capital. December 31, 2024 620,000.00
0; Nona - P300,000

raw P10,000 at the end of each month

of the 4th quarter which was divided equally among them

- P300,000
000 at the end of each month

120,000.00
120,000.00

artnership
n Partners' Equity
December 31, 2024 `
Nona Total
300,000.00 800,000.00
200,000.00 200,000.00
500,000.00 1,000,000.00
150,000.00 300,000.00
(30,000.00) (60,000.00)
620,000.00 1,240,000.00
EXERCISE 2 PAGE 54
Land 3,500,000.00
Building 2,500,000.00
Mortgage Payable 1,200,000.00
Andy, Captal 4,800,000.00
to record investment of Andy
#
Cash 2,400,000.00
Amy, Capital 2,400,000.00
P4,800,000 /2 = 2,400,000
to record investment of Amy
EXERCISE 3 PAGE 54
A (1) Cash 900,000.00
Land 300,000.00
Building 500,000.00
Notes Payable
Elmer, Capital
Edam, Capital
to record partners' investment
#
(2) Elmer, Drawing 105,000.00
Edam, Drawing 70,000.00
Cash
P475,000 - 125,000 = P350,000 Net Income
P350,000 x 3/5 = P210,000 /2 = P105,000
P350,000 x 2/5 = P140,000 /2 = P70,000
to record partners' cash witdrawal
#
(3) Income Summary 350,000.00
Elmer, Drawing
Edam, Drawing
#
NOT REQUIRED Elmer, Drawing 105,000.00
Edam, Drawing 70,000.00
Elmer, Capital
Edam, Capital
#

B Elmer and Edam Partnership

Statement of Changes in Partners' Equity
For the Year Ended December 31, 2024
Elmer
Capital, January 1, 2024 900,000.00
Share in net income 210,000.00
Personal Drawings (105,000.00)
Capital. December 31, 2024 1,005,000.00
 200,000.00
900,000.00
600,000.00

175,000.00

Elmer, Drawing Adam, Drawing

210,000.00 105,000.00 210,000.00 70,000.00
140,000.00 105,000.00

105,000.00
70,000.00

artnership
n Partners' Equity
ember 31, 2024
Edam Total
600,000.00 1,500,000.00
140,000.00 350,000.00
(70,000.00) (175,000.00)
670,000.00 1,675,000.00
Adam, Drawing
140,000.00
70,000.00
 DEBIT
Dec 1 Equipment 400,000.00
Note Payable
Interest Payable
Mary, Capital
P150,000 x 6% x 6/12 = P4,500

Dec 1 Cash 105,500.00

Furniture and Fixtures 240,000.00
Clara, Capital
P400,000 - 100,000 = P300,000 x 80% = P240,000
P345,500 - 240,000 = P105,500

B
CREDIT

150,000.00
4,500.00
345,500.00

345,500.00
EXERCISE 5 PAGE 55
1 Cash 200,000.00
Furniture and Fixtures 150,000.00
Rubio, Capital

2 Inventory 120,000.00
Winston, Capital

3 Equipment 230,000.00
Notes Payable
Enriquez, Capital

B
350,000.00

120,000.00

100,000.00
130,000.00
 Blanco and Delio Managerment & Consultancy Firm
Statement of Changes in Partners' Equity
For the Year Ended December 31, 2024
Blanco Delio Total
Capital, January 1, 2024 800,000.00 900,000.00 1,700,000.00
Additional Investment 150,000.00 - 150,000.00
Total 950,000.00 900,000.00 1,850,000.00
Share in net income 160,000.00 240,000.00 400,000.00
Personal Drawings (200,000.00) (280,000.00) (480,000.00)
Capital. December 31, 2024 910,000.00 860,000.00 1,770,000.00

Net Income = P600,000 - 200,000 = P400,000

* Blanco made an additional investment

* Withdrawals made by Delio is more by P80,000 than that of Blanco
EXERCISE 7 PAGE 55-56
A Reyes Ortiz Flores
Cash Investments 80,000.00 40,000.00
Merchandise 70,000.00
Accounts Receivable 50,000.00
Allowance for doubtul accounts (10,000.00)
Furniture 75,000.00
Equipment 210,000.00
Notes Payable (75,000.00)
Contribution before required addt'l cash investments 190,000.00 115,000.00 135,000.00
B Cash Investments
Ortiz- P190,000 - 115,000 75,000.00
Flores - P190,000 - 135,000 55,000.00
Contriutions 190,000.00 190,000.00 190,000.00

C Cash 80,000.00
Merchandise Inventory 70,000.00
Accounts Receivable 50,000.00
Allowance for doubtful accounts 10,000.00
Reyes, Capital 190,000.00
#
Cash 115,000.00
Furniture 75,000.00
Ortiz, Capital 190,000.00
#
Cash 55,000.00
Equipment 210,000.00
Notes Payable 75,000.00
Flores, Capital 190,000.00
#
EXERCISE 8 PAGE 56 - FORMATION B ( A sole proprietor and an individual for
1 Book value
Cash 20,000.00
Accounts Receivable 80,000.00
Allowance for bad debts (2,000.00)
Merchandise Inventory 120,000.00
Furniture and Equipment 90,000.00
Allowance for depreciation (18,000.00)
Accounts Payable (40,000.00)
Adjusted Capital of Taverna 250,000.00

Taverna, Capital 24,500.00

Allowance for bad debts
Merchandise Inventory
Allowance for depreciation
to adjust the books of Taverna
#
Taverna, Capital 225,500.00
Allowance for bad debts 10,000.00
Allowance for depreciation 22,500.00
Accounts Payable 40,000.00
Cash
Accounts Receivable
Merchandise Inventory
Furniture and Equipment
to close the books of Taverna
#
2 Taverna, Capital
Less: Cash (excluded in partnership formation)
60% interest of Taverna
Divided By:
Total combined capital
Less: Taverna, Capital
Total cash contibutions of Elchico & Baylon
Equal cash contributions
Cash contributions of each of the 2

3 Cash 137,000.00
Accounts Receivable 80,000.00
Merchandise Inventory 108,000.00
Furniture and Equipment 67,500.00
Allowance for bad debts
 Accounts Payable
Taverna, Capital
Elchico, Capital
Baylon, Capital
investment of the partners and opening the books of the partnership

Note: All the above is with the assumption that the partnership will open a new set of books.
Assuming that the partnership will use the books of the sole proprietor, the books of
1 Book value
Cash 20,000.00
Accounts Receivable 80,000.00
Allowance for bad debts (2,000.00)
Merchandise Inventory 120,000.00
Furniture and Equipment 90,000.00
Allowance for depreciation (18,000.00)
Accounts Payable (40,000.00)
Adjusted Capital of Taverna

Taverna, Capital 44,500.00

Cash
Allowance for bad debts
Merchandise Inventory
Allowance for depreciation
to adjust the books of Taverna
#
2 Adjusted capital of Taverna
Divided By:
Total combined capital
Less: Taverna, Capital
Total cash contibutions of Elchico & Baylon
Equal cash contributions
Cash contributions of each of the 2

3 Cash 137,000.00
Elchico, Capital
Baylon, Capital
investment of the 2 other partners
oprietor and an individual form the partnership)
Adjustment Adjusted Value
- 20,000.00
- 80,000.00
(8,000.00) (10,000.00)
(12,000.00) 108,000.00
- 90,000.00
(4,500.00) (22,500.00)
- (40,000.00)
(24,500.00) 225,500.00

8,000.00
12,000.00
4,500.00

20,000.00
80,000.00
108,000.00
90,000.00

225,500.00
20,000.00
205,500.00
0.6
342,500.00
205,500.00
137,000.00
2
68,500.00

10,000.00
 40,000.00
205,500.00
68,500.00
68,500.00
he books of the partnership

ip will open a new set of books.

the sole proprietor, the books of Taverna, entries will be as follows:
Adjustment Adjusted Value
(20,000.00) -
- 80,000.00
(8,000.00) (10,000.00)
(12,000.00) 108,000.00
- 90,000.00
(4,500.00) (22,500.00)
- (40,000.00)
205,500.00

20,000.00
8,000.00
12,000.00
4,500.00

205,500.00
0.6
342,500.00
205,500.00
137,000.00
2
68,500.00

68,500.00
68,500.00
EXERCISE 9 PAGE 56-57
A Equipment 260,000.00
Furniture and Fixtures 40,000.00
Gilmore, Capital
#
B Cash 200,000.00
Raymond, Capital
#

Gilmore
Agreed Capital 250,000.00
Actual Contributions 300,000.00
Bonus (50,000.00)

Gilmore, Capital 50,000.00

Raymond, Capital
#

To strictly comply with letter B requirement:

Cash 200,000.00
Gilmore, Capital 50,000.00
Raymond, Capital
300,000.00

200,000.00

Raymond Total
250,000.00 500,000.00
200,000.00 500,000.00
50,000.00 -

50,000.00

250,000.00