11.NAME:SECTION:Partnerships: Basic Considerations and Formation 465Problem #3A Sole Proprietor and an Individual with No Business Form a PartnershipSCORE:PROFESSOR:Espanol operated a specialty shop that sold fishing equipment and accessories. Herpost-closing trial balance on Dec. 31, 2022 is as follows:Accounts PayableEspanol, CapitalCashAccounts ReceivableAllowance for Uncollectible AccountsInventoryEquipmentAccumulated DepreciationFishPost-Closing Trial BalanceDec. 31, 2022DebitP 36,000150,000440,000135,000P761,000CreditP 16,00075,00030,000640,000P761,000Espanol plans to enter into a partnership with trusted associate, Selisana, effective Jan.1, 2023. Profits or losses will be shared equally., Espanol is to transfer all assets andliabilities of her shop to the partnership after revaluation.Selisana will invest cash equal to Espanol's investment after revaluation. The agreedvalues are as follows: accounts receivable (net), P140,000; inventory, P460,000; andequipment (net), P124,000. The partnership will operate under the business name ofFish R' Us.Required:1. Prepare the opening journal entries in the books of the partnership.2. Prepare the partnership's statement of financial position as at the date of formationof the partnership.

Accounting treatment of formation of Partnership If the potential partners already own a business,…

Fish R' Us. Required: 1. Prepare the opening journal entries in the books of the partnership. 2. Prepare the partnership's statement of financial position as at the date of formation of the partnership.

Fish R' Us. Required: 1. Prepare the opening journal entries in the books of the partnership. 2. Prepare the partnership's statement of financial position as at the date of formation of the partnership.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information relates to partner for the year ended 29 February 2020: Current account credit balance on 29 February 2020 20 000 Profit share 50 000 Salaries 180 000 Interest on capital 24 000 Drawings 220 000 Interest on drawings 2 000 What is the balance in the Current account of the partner on 01 March 2019? OA. R12 000 DR. B. R116 00O DR OC. R52 000 CR D. R12 000 CR S Type here to search
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