Acccob 1- Module 2 Partnership Formation PDF

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Summary

Exercise 2 - 1 Identification Exercise 2 - 2 True or False1) Partnership 1) FALSE2) Industrial Partner 2) FALSE3) General Partnerhsip 3) TRUE4) Nominal Partner 4) FALSE5) Mutual Agency 5) FALSE6) Articles of Co-Partnership 6) FALSE7) General 7) TRUE8) Co-ownership of Property 8) TRUE9) Fair Value 9)...

Description

Exercise 2 - 1 Identification 1) Partnership 2) Industrial Partner 3) General Partnerhsip 4) Nominal Partner 5) Mutual Agency 6) Articles of Co-Partnership 7) General 8) Co-ownership of Property 9) Fair Value 10) Memorandum Entry

Exercise 2 - 2 True or False 1) FALSE 2) FALSE 3) TRUE 4) FALSE 5) FALSE 6) FALSE 7) TRUE 8) TRUE 9) TRUE 10) TRUE

Case A

Date Rose: July, 2020

Case B

Particulars 1 Rose, Capital Cash Rose, Capital Office Equipment

Guada: July, 2020

1 Guada, Capital Furniture and Fixture

P/R

Debit

Credit

500,000 5,000,000 60,000

Date May, 2020

Particulars 1 Building Office Equipment Mortgage Payable Romy, Capital To record capital contribution of Romy

P/R

Debit 1,200,000 30,000

Credit

300,000 1,230,000

60,000

100,000 100,000

1 Cash Office Equipment Furniture and Fixture Vic, Capital To record capital contribution of Vic

570,000 220,000 50,000

RGM Partnership Statement of Financial Position July 04, 2020 ASSETS Current Assets Debit Cash 195,000 Trade Receivables 105,000 Office Supplies 2,000

Credit

302,000 840,000

Non-Current Assets Property, Plant and Equipment

460,000

Total Assets

762,000

SOLUTION Romy's Capital 1,500,000 30,000 220,000 50,000 1,800,000 300,000 2,100,000

Liabilities and Owner's Equity Romy, Capital Vic, Capital

Cash (Vic)

2,100,000 0.40 840,000 -220,000 -50,000 570,000

Current Liabilities Accounts Payable Owner's Equity Rosario, Capital Guadalupe, Capital Maria, Capital

0

320,000 225,000 217,000 762,000 762,000

Total Liabiltiies Note 1: Trade Receivables Accounts Receivable Allowance for Bad Debts Total Trade Receivables

95,000 (10,000)

Notes 2: Power, Plant and Equipment Office Equipment Furniture and Equipment Total Trade Receivables

320,000 140,000

105,000

460,000

Date Oct. 2020

Particulars 1Francis, Capital Allowance for Bad Debts 1Landscaping Supplies Francis, Capital

P/R Debit 2,800

Credit 2,800

10,000

Accumulated Depreciation - Furniture and Eqipment 100,000 100,000

10,800

200,000

10,000

1Francis, Capital Accumulated Depreciation - Furniture and Equipment

100,000 100,000

Closing Entries 1Allowance for Bad Debts Accumulated Depreciation - Furniture and Equipment Accounts Payable Francis, Capital Cash Accounts Receivable Landscaping Supplies Furniture and Equipment Partnership Books 1Cash Accounts Receivable Landscaping Supplies Furniture and Equipment Allowance for Bad Debts Accounts Payable Francis, Capital 1Cash Pio, Capital

Allowance for Bad Debts 8,000 2,800

10,800 200,000 565,000 1,634,200

Francis, Capital 1,727,000 10,000 2,800 100,000 1,634,200

Landscaping Supplies 550,000 10,000 560,000

Francis and Pio Limited Statement of Financial Position October 01, 2020 ASSETS Current Assets Debit Cash 1,764,200 Trade Receivables 709,200 Landscaping Supplies 560,000

3,033,400 Non-Current Assets Furniture and Equipment

800,000

Total Assets

130,000 720,000 560,000 1,000,000

130,000 720,000 565,000 800,000

Cash 130,000 1,634,200

3,833,400

Liabilities and Owner's Equity Current Liabilities Accounts Payable

1,634,200 1,634,200

565,000

1,764,000 Owner's Equity Francis, Capital Pio, Capital

1,634,200 1,623,200

Total Liabiltiies

10,800 565,000 1,634,200

Credit

Note 1: Trade Receivables Accounts Receivable Allowance for Bad Debts Total Trade Receivables

3,257,400 3,822,400

720,000 (10,800) 709,200

Date

Particulars Adjusting Entries

Apr. 2020 1 Anne, Capital Allowance for Doubtful Accounts

P/R

Debit 2,500

2,500

1 Catering Supplies Inventory Anne, Capital

5,000

1 Anne, Capital Catering Supplies Inventory

10,000

1 Accumulated Depreciation Anne, Capital Closing Entries 1 Allowance for Doubtful Accounts Accumulated Depreciation Accounts Payable Anne, Capital Cash Accounts Receivable Catering Supplies Inventory Catering Utensils and Equipment

Credit

5,000

AM Catering Service Statement of Financial Position April 01, 2020 ASSETS Current Assets Debit Cash 129,750 Trade Receivables 67,500 Catering Supplies Inventory 560,000

Credit

212,250 10,000

Non-Current Assets Catering Utensil and Equipment

110,000

Total Assets

322,250

6,700 6,700

Liabilities and Owner's Equity Current Liabilities Accounts Payable

7,500 0 8,000 209,500

Cash investment of Mary upon formation of the partnership. Anne, Capital 209,500 Capital Interest 2/3 Total Partnership Capitalization 314,250 Mary's Interest 1/3 Mary's Capital 104,750

25,000 75,000 15,000 110,000

Owner's Equity Anne, Capital Mary, Capital

209,500 104,750

Total Liabiltiies Note 1: Trade Receivables Accounts Receivable Allowance for Bad Debts Total Trade Receivables

8,000

314,250 322,250

75,000 (7,500) 67,500

Date

Particulars A djusting Entries (Michael) Jan., 2020 1 Michael, Capital Accounts Receivable 1 Michael, Capital Office Supplies

P/R

Debit

2,000 400 400

1 Michael, Capital Accumulated Depreciation - Office Equipmen

2,000

1 Accumulated Deprecation - Furniture and Fixtu Michael, Capital

1,000

Closing Entries (Michael) 1 Accumulated Deprecation - Office Equipment Accumulated Deprecation - Furniture and Fixtu Accounts Payable Michael, Capital Cash Accounts Receiavble Office Supplies Office Equipment Furniture and Fixture

Credit

2,000

2,000

1,000

9,500 5,000 15,000 162,100 50,000 18,000 3,600 80,000 40,000

Date

Particulars A djusting Entries (Rafael) Jan. 2020 1 Rafael, Capital Accounts Receivable 1 Rafael, Capital Office Supplies 1 Accumulated Depreciation - Office Equipment Rafael, Capital Closing Entries (Rafael) 1 Accumulated Depreciation - Office Equipment Accumulated Depreciation - Furniture an Equipme Accounts Payable Rafael, Capital Cash Accounts Receivable Office Supplies Office Equipment Furniture and Fixture

P/R

Debit

Credit

1,800 1,800 500 500 1,500 1,500

7,500 3,000 10,000 118,200 30,000 16,200 4,500 60,000 28,000

Date Jan. 2020

Particulars Adjusting Entries (Romy) 1Romy, Capital Allowance for Bad Debts

P/R

400

1Romy, Capital Office Supplies

700

Closing Entries (Romy ) 1Allowance for Bad Debts Accumulated Depreciation - Office Equipment Acumulated Depreciation - Furniture and Fixture Accounts Payable Romy, Capital Cash Accounts Receivable Office Supplies Office Equipment Furniture and Fixture

Jan. 2020

1,500

Particulars Adjusting Entries (Argem) 1 Argem, Capital Allowance for Bad Debts

3,000

1 Accumulated Depreciation - Office Equipment Argem, Capital

1Cash Accounts Receivable Office Supplies Office Equipment Furniture and Fixutre Accounts Payable Romy, Capital

46,000 58,500 6,300 49,600

1Cash Accounts Receivable Office Supplies Office Equipment Furniture and Fixture Accounts Payable Notes Payable Interest Payable Argem, Payable

336,600 40,500 12,600 78,400 25,600

Debit

1,500 2,400 2,400

1 Argem, Capital Interest Payable

1,000

700

1 Argem, Capital Office Supplies

1,400

1 Cash Argem, Capital

298,600

Credit

24,000 224,400

Closing Entries (A rgem) Allowance for Bad Debts Accumulated Depreciation - Office Equipment Acumulated Depreciation - Furniture and Fixture Accounts Payable Interest Payable Notes Payable Argem, Capital Cash Accounts Receivable Office Supplies Office Equipment Furniture and Equipment

Credit

1,500

1 Argem, Capital Accumulated Depreciation - Furniture and Fixture

46,000 65,000 6,300 110,000 62,000

Debit

P/R

400

6,500 22,000 12,400 24,000 224,400

P/R

Date Jan. 2020

3,000

1Romy, Capital Accumulated Depreciation - Furniture and Fixtu

Particulars Books for Partnership

Credit

1,500

1Accumulated Depreciation - Office Equipment Romy, Capital

Date

Debit

Winner Property Consulting Statement of Financial Position January 01, 2020 ASSETS Current Assets Debit Cash 382,600 Trade Receivables 99,000 Office Supplies 18,900

400

500,500 400

1,000

Non-Current Assets Property, Plant and Equipment

241,600

Total Assets

742,100 Liabilities and Owner's Equity

1,400

298,600

4,500 19,600 6,400 8,000 1,000 10,000 474,700

Current Liabilities Tade and Other Payables Owner's Equity Romy, Capital Argem, Capital

43,000

224,400 474,700

Total Liabiltiies Note 1: Trade Receivables Accounts Receivable Allowance for Bad Debts 336,600 45,000 12,600 98,000 32,000

Note 2: Power, Plant, and Equipment Office Equipment Accumulated Depreciation

Accumulated Depreciation Total Power, Plant and Equipment Note 3: Trade and Other Payables Accounts Payable Notes Payable Interest Payable Total Trade and Other Payables

699,100 742,100

45,000 65,000 (4,500) (6,500)

Total Trade Receivables

Furniture and Fixture

8,000 10,000 1,000 474,700

Credit

99,000

110,000 98,000 (22,000) (19,600) 62,000 32,000 (12,400) (6,400) 214,600

24,000 8,000 10,000 1,000 43,000

Date Jan. 2020

Particulars P/R Debit Adjusting Entries (Martin) 1 Martin, Capital 8,000 Accounts Receivable 1 Matin, Capital Delivery Equipment 1 Martin, Capital Office Equipment 1 Martin, Capital Furniture and Fixture

Credit

8,000

10,000 10,000 4,000

Date

Particulars P/R Books of Partnership

Jan. 2020 1 Cash Accounts Receivable Delivery Equipment Office Equipment Furniture and Fixture Accounts Payable Martin, Capital

Debit

Credit

400,000 72,000 340,000 136,000 64,000 30,000 982,000

4,000 16,000

Closing Entries (Martin) 1 Accounts Payable 30,000 Martin, Capital 982,000 Cash Accounts Receivable Delivery Equipment Office Equipment Furniture and Fixture

16,000

400,000 72,000 340,000 13,600 64,000

1 Cash Office Equipment Jude, Capital Date Particulars Jan. 2020 1 Cash Accounts Receivable Delivery Equipment Office Equipment Furniture and Fixture Accounts Payable Martin, Capital 1 Cash Office Equipment Jude, Capital

342,800 50,000 392,800 P/R

Debit 400,000 72,000 340,000 136,000 64,000

Credit

30,000 982,000 342,800 50,000 392,800...