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One or more sole proprietors and one or more individuals without eXisting business form a partnership. 1. On July 1, 20xx, Julius invited Ceazar to join him in his retail business. Julius to contribute all his assets and liabilities in the business and Ceazar to contribute cash equivalent to the net worth of Julius. Julius and Ceazar agreéd to divide profits and losses equally. The statement of financial position of Julius on June 30, 20xx follows: Julius Enterprises Statement of Financial Position As at June 30, 20xx Assets Cash P 555,000 Accounts Receivable P150,000 Less: Allow.for Uncollectible Accounts 5,000 Inventory Vehicles 145,000 2,000,000 500,000 Less: Accumulated Depreciation 100,000 400,000 Total Assets P3,100,000 Liabilities and Capital Accounts Payable Julius Capital Total Liabilities and Capital P 300,000 2,800.000 P3,100,000

One or more sole proprietors and one or more individuals without eXisting business form a partnership. 1. On July 1, 20xx, Julius invited Ceazar to join him in his retail business. Julius to contribute all his assets and liabilities in the business and Ceazar to contribute cash equivalent to the net worth of Julius. Julius and Ceazar agreéd to divide profits and losses equally. The statement of financial position of Julius on June 30, 20xx follows: Julius Enterprises Statement of Financial Position As at June 30, 20xx Assets Cash P 555,000 Accounts Receivable P150,000 Less: Allow.for Uncollectible Accounts 5,000 Inventory Vehicles 145,000 2,000,000 500,000 Less: Accumulated Depreciation 100,000 400,000 Total Assets P3,100,000 Liabilities and Capital Accounts Payable Julius Capital Total Liabilities and Capital P 300,000 2,800.000 P3,100,000

FINANCIAL ACCOUNTING
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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Conditions agreed upon before the formation of the partnership: a. The accounts receivable of Julius is estimated to be 80% realizable. b. Inventory in the amount of P40,000 is considered worthless. c. The accumulated depreciation of the vehicles shall be increased by P25,000. d. The accouts payable will be assumed by the partnership. e. Unpaid utilities in the amount of P10,000 shall be recognized. to te Required: 1. Prepare the necessary journal entries to adjust and close the books of Julius. 2. What shall be the amount of cash to be contributed by Ceazar?
Transcribed Image Text:Conditions agreed upon before the formation of the partnership: a. The accounts receivable of Julius is estimated to be 80% realizable. b. Inventory in the amount of P40,000 is considered worthless. c. The accumulated depreciation of the vehicles shall be increased by P25,000. d. The accouts payable will be assumed by the partnership. e. Unpaid utilities in the amount of P10,000 shall be recognized. to te Required: 1. Prepare the necessary journal entries to adjust and close the books of Julius. 2. What shall be the amount of cash to be contributed by Ceazar?
One or more sole proprietors and one or more individuals without existing business form a partnership. 1. On July 1, 20xx, Julius invited Ceazar to join him in his retail business. Julius to contribute all his assets and liabilities in the business and Ceazar to contribute cash equivalent to the net worth of Julius. Julius and Ceazar agreéd to divide profits and losses equally. The statement of financial position of Julius on June 30, 20xx follows: Julius Enterprises Statement of Financial Position As at June 30, 20xx Assets Cash P 555,000 Accounts Receivable P150,000 Less: Allow.for Uncollectible Accounts 5.000 145,000 Inventory 2,000,000 Vehicles 500,000 Less: Accumulated Depreciation 100,000 400,000 P3,100,000 Total Assets Liabilities and Capital Accounts Payable Julius Capital Total Liabilities and Capital P 300,000 2,800,000 P3,100,000
Transcribed Image Text:One or more sole proprietors and one or more individuals without existing business form a partnership. 1. On July 1, 20xx, Julius invited Ceazar to join him in his retail business. Julius to contribute all his assets and liabilities in the business and Ceazar to contribute cash equivalent to the net worth of Julius. Julius and Ceazar agreéd to divide profits and losses equally. The statement of financial position of Julius on June 30, 20xx follows: Julius Enterprises Statement of Financial Position As at June 30, 20xx Assets Cash P 555,000 Accounts Receivable P150,000 Less: Allow.for Uncollectible Accounts 5.000 145,000 Inventory 2,000,000 Vehicles 500,000 Less: Accumulated Depreciation 100,000 400,000 P3,100,000 Total Assets Liabilities and Capital Accounts Payable Julius Capital Total Liabilities and Capital P 300,000 2,800,000 P3,100,000
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