PARTL PARTNERSHIP FORMATION AND OPERATIONS On April 1, 2020, three existing sole proprietors in Cotabato City agreed to form a partnership to engage in a anufacturing business. Their contributions are as follow: Jobert Leopoldo Santos Zander Manuel Limba 100,000 250,000 600,000 120,000 Cash in Bank Land 200,000 200,000 P Office Building Accumulated Depreciation-Office Building Office Equipment Accumulated Depreciation-Office Equipment Furniture and Fixtures 200,000 40,000 150,000 Accumulated Depreciation-Furniture & Fixtures Accounts Payable Mortgage Payable 70,000 3,500 10,000 15,000 10,000 100,000 The partners also agreed that the new partnership will assume their respective sole proprietorship liabilities, and agreed further that the partnership's starting capitalization should be at P2,000,000, and that they are to contribute additional cash necessary to make their individual capital to equal their profit and loss ratio of 3:3:4, respectively.. Prepare journal entries in the books of the new partnership to record the initial investments of the partners.
PARTL PARTNERSHIP FORMATION AND OPERATIONS On April 1, 2020, three existing sole proprietors in Cotabato City agreed to form a partnership to engage in a anufacturing business. Their contributions are as follow: Jobert Leopoldo Santos Zander Manuel Limba 100,000 250,000 600,000 120,000 Cash in Bank Land 200,000 200,000 P Office Building Accumulated Depreciation-Office Building Office Equipment Accumulated Depreciation-Office Equipment Furniture and Fixtures 200,000 40,000 150,000 Accumulated Depreciation-Furniture & Fixtures Accounts Payable Mortgage Payable 70,000 3,500 10,000 15,000 10,000 100,000 The partners also agreed that the new partnership will assume their respective sole proprietorship liabilities, and agreed further that the partnership's starting capitalization should be at P2,000,000, and that they are to contribute additional cash necessary to make their individual capital to equal their profit and loss ratio of 3:3:4, respectively.. Prepare journal entries in the books of the new partnership to record the initial investments of the partners.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
Question
Transcribed Image Text:PARTL PARTNERSHIP FORMATION AND OPERATIONS
On April 1, 2020, three existing sole proprietors in Cotabato City agreed to form a partnership to engage in
a Hanufacturing business. Their contributions are as follow:
Jobert
Manuel
Leopoldo
Zander
Santos
Limba
100,000
250,000
600,000
120,000
Cash in Bank
200,000
200,000 P
Land
Office Building
Accumulated Depreciation-Office Building
Office Equipment
Accumulated Depreciation-Office Equipment
Furniture and Fixtures
Accumulated Depreciation-Furniture & Fixtures
Accounts Payable
Mortgage Payable
200,000
40,000
150,000
15,000
10,000
70,000
3,500
10,000
100,000
The partners also agreed that the new partnership will assume their respective sole proprietorship liabilities,
and agreed further that the partnership's starting capitalization should be at P2,000,000, and that they are
to contribute additional cash necessary to make their individual capital to equal their profit and loss ratio of
3:3:4, respectively.
Prepare journal entries in the books of the new partnership to record the initial investments of the partners.
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