[go: up one dir, main page]
Scribd
Upload
340 views1 page

Partnership Formation: Office Furniture Will Be Debited For P3200

Edwin and Darren formed a partnership, with Edwin contributing P80,000 cash and P17,000 inventory, and Darren contributing P2,400 cash and P3,200 office furniture. If their contributions equaled the total agreed capital and they had equal partnership interest, there would be no bonus. Alana and Ansley entered a partnership with Alana having 60% interest. Alana contributed land worth P500,000, a building worth P3,000,000, and equipment worth P750,000. They assumed a P1,000,000 mortgage. With total capitalization of P6,000,000, Alana's capital account would be P3,600,000 and

Uploaded by

Von Andrei Medina
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
340 views1 page

Partnership Formation: Office Furniture Will Be Debited For P3200

Edwin and Darren formed a partnership, with Edwin contributing P80,000 cash and P17,000 inventory, and Darren contributing P2,400 cash and P3,200 office furniture. If their contributions equaled the total agreed capital and they had equal partnership interest, there would be no bonus. Alana and Ansley entered a partnership with Alana having 60% interest. Alana contributed land worth P500,000, a building worth P3,000,000, and equipment worth P750,000. They assumed a P1,000,000 mortgage. With total capitalization of P6,000,000, Alana's capital account would be P3,600,000 and

Uploaded by

Von Andrei Medina
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

PARTNERSHIP FORMATION

1. Edwin and Darren have decided to form a partnership. Edwin contributes P80,000 cash and
merchandise inventory with a current market value of P17,000. Darren contributes P2400 cash and
office furniture with a current market value of P3200.

When journalizing these transactions _____


Office Furniture will be debited for P3200

If the partners decide to have equal interest in the partnership and the total actual contributions is equal
to total agreed capital, which statement is true?
There is bonus

2. Alana & Ansley enter into a partnership agreement in which Alana will be given 60% interest in capital
and profits. Alana contributes the following:
Land - P500,000 ?
Building - 5,000,000 fair value is 60% of its cost
Equipment - 1,000,000 fair value is 75% of its cost
There is P1,000,000 mortgage on the building which the partners agreed to assume.
The partners agreed that the total partnership capitalization should be P6M.

Alana, Capital should be credited for


P3,600,000

How much should be Ansley’s agreed capitalization?


P2,400,000

Land should be recorded in the amount of


P850,000

You might also like