Partnership formation (2b) Two or more Sole Proprietor form a Partnership The business assets of Padilla and Bernado appear below: Padilla Вernardo Cash 11,000 22,000 Accounts Receivable 235,000 568,000 LInventories 120,000 260,000 Land 603,000 Building 428,000 Furniture and Fixture 51,000 35,000 Other Assets 2,000 5,000 Total 1,022,000 1,318,000 Accounts Payable 180,000 244,000 Notes Payable 200,000 345,000 Padilla, Capital 642,000 Bernardo, Capital 729,000 Total 1,022,000 1,318,000 Padilla ang Bernardo agreed to form a partnership contributing their assets and equitie and assuming their liabilites, subject to the following adjustments: a. Accounts Receivable of P20,000 in Padilla's books and P35,000 in Bernardo's are uncollectible. b. Inventories of P5,000 and P6,000 are worthless in Padilla's and Bernardo's respective books. c. Other Assets of P2,000 and P5,000 for Padilla and Bernardo are to be written off. Requried: Prepared journal entries for the formation of the Partnership as at July1, 2021. JOURNAL ENTRIES for the Partnership Date Particulars Debit Credit

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Partnership formation (2b)
Two or more Sole Proprietor form a Partnership
The business assets of Padilla and Bernado appear below:
Padilla
Вernardo
Cash
11,000
22,000
Accounts Receivable
235,000
568,000
Inventories
120,000
260,000
Land
603,000
Building
428,000
Furniture and Fixture
51,000
35,000
2,000
1,022,000
Other Assets
5,000
Total
1,318,000
Accounts Payable
180,000
244,000
Notes Payable
200,000
345,000
Padilla, Capital
642,000
Bernardo, Capital
729,000
Total
1,022,000
1,318,000
Padilla ang Bernardo agreed to form a partnership contributing their assets and equities
and assuming their liabilites, subject to the following adjustments:
a. Accounts Receivable of P20,000 in Padilla's books and P35,000 in Bernardo's
are uncollectible.
b. Inventories of P5,000 and P6,000 are worthless in Padilla's and Bernardo's
respective books.
c. Other Assets of P2,000 and PS,000 for Padilla and Bernardo are to be
written off.
Requried:
Prepared journal entries for the formation of the Partnership as at July 1, 2021.
JOURNAL ENTRIES for the Partnership
Date
Parti culars
Debit
Сredit
Transcribed Image Text:Partnership formation (2b) Two or more Sole Proprietor form a Partnership The business assets of Padilla and Bernado appear below: Padilla Вernardo Cash 11,000 22,000 Accounts Receivable 235,000 568,000 Inventories 120,000 260,000 Land 603,000 Building 428,000 Furniture and Fixture 51,000 35,000 2,000 1,022,000 Other Assets 5,000 Total 1,318,000 Accounts Payable 180,000 244,000 Notes Payable 200,000 345,000 Padilla, Capital 642,000 Bernardo, Capital 729,000 Total 1,022,000 1,318,000 Padilla ang Bernardo agreed to form a partnership contributing their assets and equities and assuming their liabilites, subject to the following adjustments: a. Accounts Receivable of P20,000 in Padilla's books and P35,000 in Bernardo's are uncollectible. b. Inventories of P5,000 and P6,000 are worthless in Padilla's and Bernardo's respective books. c. Other Assets of P2,000 and PS,000 for Padilla and Bernardo are to be written off. Requried: Prepared journal entries for the formation of the Partnership as at July 1, 2021. JOURNAL ENTRIES for the Partnership Date Parti culars Debit Сredit
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