### Partnership Transactions Overview **July Transactions:** 1. **July 1:** Mr. Bon Hok withdrew P20,000 in cash as a charge to share in profits. 2. **July 2:** Mr. Ok made an additional contribution of P30,000 in cash to the partnership. 3. **Transaction 3:** Mr. Meng purchased goods on account from the partnership amounting to P10,000. 4. **Transaction 4:** The partnership borrowed P50,000 from Mr. Hok. 5. **Transaction 5:** Mr. Meng fully settled his account with the partnership. 6. **Transaction 6:** The partnership repaid 50% of its borrowings to Mr. Hok. 7. **Transaction 7:** Mr. Ok permanently withdrew P20,000 in cash from the partnership. 8. **Transaction 8:** At the end of the accounting period, the partnership earned a profit of P80,000, which was decided to be distributed among the partners. This summary provides an example of typical financial transactions within a business partnership, highlighting contributions, borrowings, withdrawals, and profit distribution. These transactions demonstrate how partnerships manage cash flow and financial obligations among partners.
### Partnership Transactions Overview **July Transactions:** 1. **July 1:** Mr. Bon Hok withdrew P20,000 in cash as a charge to share in profits. 2. **July 2:** Mr. Ok made an additional contribution of P30,000 in cash to the partnership. 3. **Transaction 3:** Mr. Meng purchased goods on account from the partnership amounting to P10,000. 4. **Transaction 4:** The partnership borrowed P50,000 from Mr. Hok. 5. **Transaction 5:** Mr. Meng fully settled his account with the partnership. 6. **Transaction 6:** The partnership repaid 50% of its borrowings to Mr. Hok. 7. **Transaction 7:** Mr. Ok permanently withdrew P20,000 in cash from the partnership. 8. **Transaction 8:** At the end of the accounting period, the partnership earned a profit of P80,000, which was decided to be distributed among the partners. This summary provides an example of typical financial transactions within a business partnership, highlighting contributions, borrowings, withdrawals, and profit distribution. These transactions demonstrate how partnerships manage cash flow and financial obligations among partners.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Required:
• prepare journal entries
• prepare ledger
Transcribed Image Text:### Partnership Transactions Overview
**July Transactions:**
1. **July 1:** Mr. Bon Hok withdrew P20,000 in cash as a charge to share in profits.
2. **July 2:** Mr. Ok made an additional contribution of P30,000 in cash to the partnership.
3. **Transaction 3:** Mr. Meng purchased goods on account from the partnership amounting to P10,000.
4. **Transaction 4:** The partnership borrowed P50,000 from Mr. Hok.
5. **Transaction 5:** Mr. Meng fully settled his account with the partnership.
6. **Transaction 6:** The partnership repaid 50% of its borrowings to Mr. Hok.
7. **Transaction 7:** Mr. Ok permanently withdrew P20,000 in cash from the partnership.
8. **Transaction 8:** At the end of the accounting period, the partnership earned a profit of P80,000, which was decided to be distributed among the partners.
This summary provides an example of typical financial transactions within a business partnership, highlighting contributions, borrowings, withdrawals, and profit distribution. These transactions demonstrate how partnerships manage cash flow and financial obligations among partners.
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