On January 1, 2022, Bon Hok, Dyon Ok and Meow Meng agreed to form a partnership with the following contribution: Bon Hok, a general partner, contributed cash P 150,000 and shares 45% for profits and losses. Dyon OK is a limited partner, contributed his Brand New Motorcycle costing P 150,000 and shares 40% for profits and losses Meow Meng is an industrial partner contributing his personal services and shares 15% in the partnership profits. Prepare the journal entry and post it to the appropriate partner's account.
On January 1, 2022, Bon Hok, Dyon Ok and Meow Meng agreed to form a partnership with the following contribution: Bon Hok, a general partner, contributed cash P 150,000 and shares 45% for profits and losses. Dyon OK is a limited partner, contributed his Brand New Motorcycle costing P 150,000 and shares 40% for profits and losses Meow Meng is an industrial partner contributing his personal services and shares 15% in the partnership profits. Prepare the journal entry and post it to the appropriate partner's account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![On January 1, 2022, Bon Hok, Dyon Ok and Meow Meng
agreed to form a partnership with the following contribution:
Bon Hok, a general partner, contributed cash P 150,000 and shares 45% for
profits and losses.
Dyon OK is a limited partner, contributed his Brand New Motorcycle
costing P 150,000 and shares 40% for profits and losses
Meow Meng is an industrial partner contributing his personal
services and shares 15% in the partnership profits.
Prepare the journal entry and post it to the appropriate partner's account.
Let's try these:
Prepare the journal entries for the following transactions:
July 1- Mr. Bon Hok withdraw P20,000 cash charge to share in profits.
2 - Mr. Ok made an additional contribution of P30,000 cash.
3 Mr. Meng bought goods on account from the partnership, P 10,000
4 The partnership borrowed P50,000 from Mr. Hok.
5 Mr. Meng fully paid its account to the partnership.
6. The partnership pays 50% of its borrowings to Mr. Hok.
7 Mr. Ok permanently withdraw P 20,000 cash from the prtnersip.
8. Assuming at the end of the accounting period, the partnership earns profit of P80,000 and
decided to distribute the profits to the partners.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a49d2b5-be93-4e9b-8518-841a43839a2d%2Fa28b1ac0-9b65-4918-b76c-8df6e3b7357b%2Ft1kh37_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2022, Bon Hok, Dyon Ok and Meow Meng
agreed to form a partnership with the following contribution:
Bon Hok, a general partner, contributed cash P 150,000 and shares 45% for
profits and losses.
Dyon OK is a limited partner, contributed his Brand New Motorcycle
costing P 150,000 and shares 40% for profits and losses
Meow Meng is an industrial partner contributing his personal
services and shares 15% in the partnership profits.
Prepare the journal entry and post it to the appropriate partner's account.
Let's try these:
Prepare the journal entries for the following transactions:
July 1- Mr. Bon Hok withdraw P20,000 cash charge to share in profits.
2 - Mr. Ok made an additional contribution of P30,000 cash.
3 Mr. Meng bought goods on account from the partnership, P 10,000
4 The partnership borrowed P50,000 from Mr. Hok.
5 Mr. Meng fully paid its account to the partnership.
6. The partnership pays 50% of its borrowings to Mr. Hok.
7 Mr. Ok permanently withdraw P 20,000 cash from the prtnersip.
8. Assuming at the end of the accounting period, the partnership earns profit of P80,000 and
decided to distribute the profits to the partners.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education