THEY APPOINTED MARAWI AS MANAGING PARTNER, WHO WILL RECEIVE A SALARY OF P 10,000 PER MONTH. MITOR WILL BE AN INDUSTRIAL PARTNER WHO WILL RECEIVE A JUST SUM OF 10% OF THE NET PROFITS. MISERIA ON THE OTHER HAND , CHOSE TO BE A LIMITED PARTNER AND THE LIQUIDATING PARTNER. THE PROFITS WILL BE DIVIDED ACCORDING TO THEIR CAPITAL CONTRIBUTION AFTER DEDUCTING THE SALARIES OF MANAGING PARTNER MARAWI AND 10% SHARE OF MITOR.
REQUIRED:
Prepare the Consolidated Journal Entry
Transcribed Image Text:ACTIVITY 1:
PARTNERSHIP FORMATION:
5 TIP COLLEGE FRIENDS MAWI, MILAGRO, MIRASOL, MISERIA AND MITOR DECIDE TO FORM A PARTNERSHIP
THEY DECIDED TO NAME THEIR PARTNERSHIP AS 4 MARIAS LAUNDRY SHOP LTD.
THEIR INITIAL CAPITAL CONTRIBUTIONS WERE AS FOLLOWS:
TOTAL
MARAWI
CASH
500,000.00
MILAGRO
PERSONAL COMPUTER
40,000.00
PRINTER
10,000.00
FURNITURES
50,000.00
100,000.00
MIRASOL
6 WASHING MACHINES
200,000.00
MISERIA
SERVICE VEHICLE
500,000.00
1,300,000.00
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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