On July 1, 20A, Cedric Naranjo and Edman Flores have agreed to form a partnership business engaged in buying and selling of "danggit dried fish" sourced in Daan Bantayan to be sold within the vicinity if Cebu City. Their contributions among others included the following: Naranjo Flores Cash 250,000 380,000 Danggit Dried Fish 180,000 Delivery Van 950,000 As agreed, Naranjo's "danggit dried fish" was revalued at 160,000 while Flores' mortgage loan balance of 250,000 for his delivery van was treated as his personal obligation from Mitsubishi Mabolo branch Required: 1. Prepare two simple journal entries recording their perspective contributions. 2. Prepare a Statement of Financial Position as of the date their partnership was formed.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
On July 1, 20A, Cedric Naranjo and Edman Flores have agreed to form a partnership business engaged in buying and selling of "danggit dried fish" sourced in Daan Bantayan to be sold within the vicinity if Cebu City. Their contributions among others included the following:
Naranjo Flores
Cash 250,000 380,000
Danggit Dried Fish 180,000
Delivery Van 950,000
As agreed, Naranjo's "danggit dried fish" was revalued at 160,000 while Flores' mortgage loan balance of 250,000 for his delivery van was treated as his personal obligation from Mitsubishi Mabolo branch
Required:
1. Prepare two simple
2. Prepare a
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