Acctg 10

ACCOUNTING 10
ADVANCED FINANCIAL ACCOUNTING
Submitted by:
Collen Ailen D. Cejas
Alpha Mae M. Prestoza
Submitted to:
Ms. Cyril Marie Saplagio, CPA
CASE:
On February 14, 2016, Dana Rosela Dizon and Nildred Tandoy decided to combine their talents
and capital to form a partnership. Their agreement for the partnership can be seen on Annex 1.
Articles of Partnership are shown on Annex II.
The partnership, under the name of The Cliché Company, commenced on June 14, 2016. Dizon and
Tandoy invested their own businesses in the partnership without further adjustments on their
books.
The Statements of Financial Position of ‘The Dizon Company’ and ‘Tandoy Company’ are shown
on Annex III.
See Annex IV for the books of The Dizon Company and Tandoy Company.
After the formation, the balance sheets of the companies of Dizon and Tandoy are combined. The
Statement of Financial Position of The Cliché Company as of June 14, 2016 is seen on Annex V.
The books of the partnership after formation is shown on Annex XIX.
The partners also agreed about the following terms:
 Each partner must receive 12, 000 salaries each month

 A 12% interest in their beginning capital each year
 The remaining profits shall be divided equally.
Upon the first year of operations, the partnership earned a profit of P620, 000. The Statement of
Financial Performance of the partnership during the year is shown on Annex VI.
After determining the profit, the partners distributed the profit according to their agreement. The
Profit Distribution is shown on Annex VII, and the necessary journal entries to record the
partnership’s operation for the year are shown on Annex XIX.
The partnership's Statement of Financial Position as of June 14, 2017 is presented on Annex
VIII.
On June 22, 2017, Ronabel Suico was admitted in the partnership investing her business. See
Annex IX for the Statement of Financial Position of Suico Company.
See Annex X for the computation of the bonus.
The agreement with regards to profit and loss agreements was changed due to Suico’s admission.
The partners agreed to give Suico a 20% interest in the total capital and in the profit and loss
sharing, while the other partners will continue to share equally.
The partners also agreed to the following adjustments in Suico's books:
a. An allowance for uncollectible accounts is to be established 10% of AR

b. The computer equipment is to be depreciated by 5,000
The necessary journal entries upon the admission of Suico in the partnership are attached on
Annex XI.
The Statement of Financial Position after admission can be seen in Annex XII.
The partnership, with the new partner, started their operation. During the year, the partnership
generates an income of 868,000, with expenses amounting to 98, 000.
The partners agreed with the following terms:

 Each partner must receive 10,000 salaries each month.
 They also agreed that since Suico worked hard for the year's operation, she will be given a
bonus of 25% of profit before salaries
 The balance according to their profit/loss sharing.
The Income Statement for 2017 is presented on Annex XIII. Furthermore, the necessary journal
entries to record the partnership’s operation for the year and share of partners in the profit is
shown on Annex XIX.
Upon the second year of operations, the partnership earned a profit of P539, 000.
After determining the profit, the partners distributed the profit according to their agreement. The
Profit Distribution is shown on Annex XIV, and the necessary journal entries to record the
partnership’s operation for the year are shown on Annex XIX.
The balance sheet for the period ended June 14, 2018 on Annex XV.
On August 14, 2018, Tandoy decided to withdraw from the partnership because she will migrate to
New York City. Tandoy's capital account has P787, 500 balances. Since she is very eager to
withdraw, she is willing to accept settlement at P562, 500.
The journal entry to record the withdrawal of Tandoy in the partnership is shown on Annex XIX.
See Annex XVI for the Certificate of Withdrawal.
Statement of Financial Position after the withdrawal is presented on Annex XVII.
On November 1, 2018, The Cliché' Company decided to liquidate because of the insanity of the
remaining partners.
On that date, the company has a cash balance of P 1,011,500, non-cash assets of 429,500 and
liabilities of 190,000. The following are the transactions at their liquidation:
 Non-cash assets were sold at 500,000

 The partnership's liabilities were paid in full
 The remaining cash was divided among the partners.
See Annex XVIII for the Statement of Liquidation. The necessary journal entries for the
liquidation are presented on Annex XIX.
Annex 1:
General Partnership Agreement
Dana Rosela G. Dizon , residing at 3123 Luna Gomez Street, Digos City and Nildred Q. Tandoy,
residing at 143 Walang Forever Street, Digos City, hereinafter referred to as the “Partners” agree as
follows:
1. Type of Business.
The Partners voluntarily associate themselves together as general partners for the purpose
of operating a general store, and any other type of business that may from time to time be
agreed on by the Partners.
2. Name of Partnership.
The name of the Partnership shall be The Cliché Company. This name will be registered in
the office of the Secretary of State as the fictitious name of the Partnership.
3. Term of Partnership.
The Partnership shall commence on June 14, 2016 and shall continue until June 14, 2020
or dissolved by mutual agreement of the parties or terminated as provided in this
Agreement.
4. Place of Business.
The principal place of business of the Partnership shall be at Bitter Street, Digos City
Philippines and any other place or places that may be mutually agreed on by the parties to
this Agreement.
5. Initial Capital. The initial capital of this Partnership shall be the sum of P490,000, to
which each Partner shall contribute by depositing in a checking account in the name of
the Partnership at the Landbank of the Philippines in Digos City on or before June 22,
2016, the following amounts:
Dana Rosela G. Dizon shall contribute P 120,000

Nildred Q. Tandoy shall contribute P 370,000
6. Withdrawal of Capital. No Partner shall withdraw any portion of the capital of the
Partnership without the express written consent of the other Partners.
7. Profits and Losses. Any net profits or losses that may accrue to the Partnership shall be
distributed to or borne by the Partners equally.
8. Partnership Books. At all times during the continuation of the Partnership, the Partners
shall keep accurate books of account in which all matters relating to the Partnership,
including all of its income, expenditures, assets, and liabilities, shall be entered. These
books shall be kept on Accrual basis and shall be open to examination by either Partner
at any time.
9. Fiscal Year.
The fiscal year of the Partnership shall end on the 14th day of June each year.
10. Accountings.
A complete accounting of the Partnership affairs as of the close of business on the last day
of March, June, September, and December of each year shall be rendered to each Partner
within 15 days after the close of each of those months. On each accounting, the net profits
of the Partnership shall be distributed to the Partners as provided in this Agreement to the
extent that cash is available for this distribution. Except as to manifest errors discovered
within 10 days after its rendition, each accounting shall be final and conclusive to each
Partner.
11. Time Devoted to Partnership.
Each Partner shall devote his or her undivided time and attention and use the utmost of his
or her skills and ability in furtherance of the Partnership business.
12. Management and Authority.
Each Partner shall have an equal voice in the management of the Partnership and shall
have authority to bind the Partnership in making contracts and incurring obligations in the
name and on the credit of the firm. However, no Partner shall incur any obligations in the
name or on the credit of the firm exceeding P45, 000 without the express written consent
of the other Partner. Any obligation incurred in violation of this provision shall be charged
to and collected from the individual Partner incurring the obligation.
13. Salaries.
As compensation for his or her services in and to the Partnership business, each Partner
shall be entitled to a salary of P12,000 each month, which shall be deducted by the
Partnership as an ordinary and necessary business expense before determination of net
profits. The salary of any Partner may, however, be increased or reduced at any time by
mutual agreement of all the Partners
14. Net Profits Defined.
The term “net profits” as used in this Agreement shall mean the net profits of the
Partnership as determined by generally accepted accounting principles for each accounting
period provided for in this Agreement.
15. Withdrawal of Partner.
Any Partner may withdraw from the Partnership at the end of any accounting period by
giving the other Partner 7 days, written notice of his or her intention to do so.
16. Option to Purchase Terminated Interest.
On dissolution of the Partnership by the withdrawal or other act of a Partner, the

remaining Partner, on written notice to the other Partner within 20 days of the dissolution,
may continue the Partnership business by purchasing the interest of the other Partner in
the assets and good will of the Partnership. The remaining Partner shall have the option to
purchase the interest of the withdrawing Partner by paying to this Partner or the Partner’s
personal representative the value of the interest determined as provided in the next
Paragraph of this Agreement.
17. Purchase Price of Partnership Interest.
On exercise of the option described in the Paragraph above, the remaining Partner shall
pay to the person who is legally entitled to it the net book value of the interest as shown on
the last regular accounting of the Partnership preceding the dissolution together with the
full unwithdrawn portion of the deceased, withdrawing, or terminated Partner’s
distributive share of any net profits earned by the Partnership between the date of the
accounting and the date of dissolution of the Partnership.
18. Buy-Sell Agreement on Death of Partner.
If the Partnership is dissolved by the death of a Partner, the remaining Partner shall have
the obligation within 20 days from the death of the deceased partner to purchase the
interest of the deceased Partner in the Partnership and to pay to the personal
representative of the deceased Partner the value of that interest as provided in this
Paragraph of this Agreement. During this 20-day period following the death of a Partner,
the remaining Partner may continue the business of the Partnership but the estate or
personal representative of the deceased Partner shall not be liable for any obligations
incurred in the Partnership business that are greater than any amount includable in the
estate of the deceased Partner that was previously invested or involved in the Partnership
and remained so on the date of death. The estate of the deceased Partner shall be obligated
to sell his or her Partnership interest as provided in this Agreement and shall be entitled, at
the election of the personal representative of the deceased Partner, either to one-half of the
net profits earned by the Partnership business during this 20-day period or to interest for
the use during this period of the deceased’s interest in the Partnership business at the rate
of 25 percent a year on the value of the partnership interest determined as provided in the
previous Paragraph of this Agreement.
19. Duties of Purchasing Partner.
On any purchase and sale pursuant to the provisions of Paragraphs 16, 17, or 18 of this
Agreement, the remaining Partner shall assume all obligations and shall hold the
withdrawing Partner, the personal representative and estate of a deceased Partner, and the
property of any withdrawing or deceased Partner, free and harmless from all liability for
these obligations. Furthermore, the remaining partner, at his or her own expense, shall
immediately cause to be prepared, filed, served, and published all notices that may be
required by law to protect the withdrawing Partner or the personal representative or
estate of a deceased Partner from liability for the future obligations of the partnership
business.
20. Dissolution.
On dissolution of the Partnership other than as provided in previous paragraphs of this

Agreement, the affairs of the Partnership shall be wound up, the assets of the Partnership
liquidated, the debts paid, and the surplus divided equally among the Partners.
21. Notices.
All notices between the parties provided for or permitted under this Agreement or by law
shall be in writing and shall be deemed duly served when personally delivered to a Partner
or, instead of personal service, when deposited in the mail, as certified, with postage
prepaid, and addressed to the partner at the address of the principal place of business of
the Partnership or to another place that may from time to time be specified in a notice
given pursuant to this paragraph as the address for service of notice on the Partner.
22. Consents and Agreement:
All consents and agreements provided for or permitted by this Agreement shall be in
writing and a signed copy of them shall be filed and kept with the books of the Partnership.
23. Sole Agreement.
This instrument contains the sole agreement of the parties relating to their Partnership
and correctly sets forth the rights, duties and obligations of each to the other in connection
with is as of its date. Any prior agreements, promises, negotiations, or representations not
expressly set forth in this Agreement are of no force or effect. Executed this 14th day of
February, 2016 at Ivanovich’s Function Hall Digos City, Philippines.
Agreed and signed by:
Dana Rosela G. Dizon Nildred Q. Tandoy

Partner Partner
ANNEX II:
Articles of Partnership
Of
The Cliché Company
KNOW ALL MEN BY THESE PRESENTS:
That, we the undersigned, all of the legal age and residents of the Republic of the
Philippines has agreed to amend a general partnership under the terms and conditions
herein after set forth and subject to the provisions of existing laws of the republic of the
Philippines.
And We Hereby Certify:
ARTICLE I. That the name of the Partnership shall be The Cliché Company
ARTICLE II. That the principal office of the Partnership shall be located at Bitter Street,
Digos City, Philippines.
ARTICLE III. That the names, citizenship and residence of the partners of the said
partnership are as follows.
Name Citizen Residence

Dana Rosela G. Dizon Filipino 3123 Luna Gomez Street,
Digos City
Nildred Q. Tandoy Filipino 143 Walang Forever Street,

Digos City
ARTICLE IV. That the term for which said partnership is to exist is 2 years from the
original recording of the said partnership by the Securities and Exchange Commission.
ARTICLE V. That the purposes for which said partnership is formed are as follows:
 To provide products that will satisfy the consumers.

 To give clients the best product through a general store.
ARTICLE VI. That the capital of this partnership shall be Four Hundred Ninety Thousand
Pesos, Philippine Currency contributed in cash by the partners as follows:
Name Amount Contributed

Dana Rosela G. Dizon P120,000
Nildred Q. Tandoy P370,000
Total P490,000
That no transfer which will reduce the ownership of Filipino citizens to less than the
required percentage of capital shall be recorded in the proper books of the partnership.
ARTICLE VII. That the profits and losses shall be divided pro-rata among the partners;
ARTICLE VIII. That the firm shall be under the management of both partners as General Managers
and as such they shall have charge of the management of the affairs of the partnership.
ARTICLE IX. That the partners undertake to change the name of the partnership immediately
upon receipt of notice or directive from the Securities and Exchange Commission that another
partnership, corporation or person has acquired a prior right to the use of that name or that the
name has been declared misleading deceptive, confusingly similar to a registered name, or
contrary to public morals, good customs or public policy.
IN WITNESS WHEREOF, we have hereunto set our hands this 14th day of February,
2016 at Ivanovich’s Function Hall Digos City, Philippines.
987-654-321-000 091-234-567-000
TIN TIN
Signed in the presence of:
Dana Rosela G. Dizon Nildred Q. Tandoy

ANNEX III:
The Dizon Company

Statement of Financial Position
As of December 31, 2015
ASSETS
Current Assets:
Cash P 25,000
Supplies 5,000
Merchandise Inventory 40,000
Total Current Assets P 70, 000
Noncurrent Assets
Furniture and Fixtures P 80,000
Total Noncurrent Assets P80,000
Total Assets P 150,000
LIABILITIES & EQUITY
Notes Payable P 30, 000

Dizon, Capital P 120,000
Total Liabilities and Equity P 150,000

NOTES TO FINANCIAL STATEMENT
Note 1 - Compliance with PFRS
The financial statements have been prepared in compliance with the PFRS and rules and
regulation of the Philippine Securities and Exchange Commission.
The accounting policies adopted in the preparation of Financial Statements have been
applied on a consistent basis.
Note 2 - Significant Accounting Policies
Measurement Basis- The Financial Statements have been prepared on the basis of historical
cost and except where stated, do not take into account changing prices and current cost of non-
current asset.
Inventories- Inventories are measured at the lower of FIFO cost and net realizable value.
Note 3 –Inventories
The components of year-end inventories are as follows:

December 31, 2015
Finished goods 23,000
Goods in process 12,000
Raw Materials 8,000
Allowance for inventory
writedown (3,000)
Inventory-end 40, 000
Tandoy Company
As of December 31, 2015
ASSETS:
Current Assets
Cash P 240,000
Accounts Receivable 45,000
Total Current Assets P285 ,000
Noncurrent Assets
Furniture & Fixtures P 90,000
Computer Equipment 130,000
Less: Accumulated Depreciation (45,000) 85,000
Total Assets P460,000
LIABILITIES AND OWNER'S EQUITY

LIABILITIES & EQUITY:
Mortgage Payable P 90, 000

Tandoy, Capital 370,000
Total Liabilities and Owner's Equity P460,000

Notes to Financial Statement
Note 1- Compliance with PFRS
Note 2- Significant Accounting Policies
current asset.
PPE- Property, Plant and Equipment are recorded at cost, straight line method is used in
recording depreciation on the basis of the estimated useful life of the assets.
ANNEX IV:
The Dizon Company’s Books
Closing Entries
Date Particulars Dr Cr
01/04/15 Notes Payable 30,000
Dizon, Capital 120,000
Cash 25,000
Supplies 5,000
Furniture & Fixtures 80,000
To close the books of The Dizon
Company.
Tandoy Company’s Books
Closing Entries
01/04/15 Mortgage Payable 90,000
Accumulated Depreciation 45,000
Cash 240,000
Furniture & Fixtures 90,000
To close the books of Tandoy
Company.
ANNEX V:
The Cliché Company

As of June 14, 2016
ASSETS:
Current Assets
Cash P 265,000
Accounts Receivable 45, 000
Supplies 5,000
Total Current Assets P355, 000
Noncurrent Assets
Accumulated Depreciation (45,000) 85,000
Total Assets P610,000
LIABILITIES AND PARTNER'S CAPITAL:

Liabilities
Mortgage Payable 90,000
Total Liabilities P120, 000
Partner's Capital
Dizon, Capital P 120, 000
Total Partner's Capital 490,000
Total Liabilities and Partner's Capital P610,000

current asset.

December 31, 2015
Raw Materials 8,000
writedown (3,000)
ANNEX VI:
The Cliché Company

Statement of Financial Performance
For the period ended June 14, 2017
Revenue:
Store Income P860, 000
Add: Other Income 340,000
Total Income P1, 200,000
Less: Expenses
Advertising Expense P25, 000
Interest Expense 80,000
Supplies Expense 15,000
Utilities Expense 123,000
Transportation Expense 57,000 (300,000)
Income before tax 900,000
Less: Income Tax (30%) 270,000
Income after Tax P630,000

ANNEX VII:
PROFIT DISTRIBUTION/SHARING
Dizon Tandoy Total

Salaries
Dizon(12,000 x 12) 144,000
Tandoy (12,000 x 12) 144,000 P 288,000
Interest on Beginning Capital Balance
Dizon (120,000 x 12 %) 14,400
Tandoy (370,000 x 12%) 44,400 P 58,800
Balance
(630,000 - 288,000 - 58,800 = 283,200)
Dizon (283,200 x 50%) 141,600
Tandoy (283,200 x 50%) 141,600 283,200
Share of Partners P300,000 P330,000 P630,000
ANNEX VIII:
The Cliché Company

As of June 14, 2016
ASSETS:
Current Assets
Cash P 895,000
Supplies 5,000
Total Current Assets P 985, 000
Noncurrent Assets
Accumulated Depreciation (45,000) 85,000
Total Noncurrent Assets P 255,000
Total Assets P 1,240,000

Liabilities
Total Liabilities P 120, 000
Partner's Capital
Total Partner's Capital P 1,120,000
Total Liabilities and Partner's Capital P 1,240,000

current asset.

December 31, 2015
Raw Materials 8,000
writedown (3,000)
ANNEX IX:
Ronabel Suico Company

June 22, 2017
ASSETS
Current Assets
Cash P140, 000
Total Current Assets P145, 000
Noncurrent Assets
Less: Accumulated Depreciation 45,000
Total Noncurrent Assets P85, 000
Total Assets P 230, 000
LIABILITIES AND OWNER'S EQUITY:
Accounts Payable P 70, 000

Suico, Capital P160,000
Total Liabilities and Owner's Equity P230, 000

Notes to Financial Statement
Note 1- Compliance with PFRS
Note 2- Significant Accounting Policies
current asset.
ANNEX X:
Admission: Bonus Method
Contributed Capital Bonus Agreed Capital

Dizon P 420, 000 (50, 200) 369, 800
Tandoy 700, 000 (50, 200) 649, 800
TOTAL 1, 120, 000 (100, 400) 1, 019, 600
Suico 154, 500 100, 400 254, 900
TOTAL 1, 274, 500 -0- 1, 274, 500
ANNEX XI:
Suico’s Company’s Books
Adjusting Entries
06/22/17 Suico, Capital 500
Allowance for Uncollectible accounts 500
To record adjustment for uncollectible
accounts.
Suico, Capital 5,000

Accumulated depreciation- Computer 5,000
Equipment
To record adjustment for accumulated
Depreciation.
Closing Entries
06/22/17 Allowance for Uncollectible accounts 500
Accumulated depreciation – 50,000
Computer Equipment
Accounts payable 70,000
Suico, capital 154,500
Cash 140,000
To close books of Suico Company.
ANNEX XII:
The Cliché Company

As of June 22, 2017
ASSETS:
Current Assets
Cash P 1,035,000
Allowance for Uncollectible accounts (500) 49,500
Supplies 5,000
Total Current Assets P 1,129, 500
Noncurrent Assets
Total Noncurrent Assets P P335, 000
Total Assets P 1,464,500

Liabilities
Accounts Payable P 70,000
Notes Payable 30, 000
Total Liabilities P P190, 000
Partner's Capital

Notes to Financial Statements
current asset.

December 31, 2015
Raw Materials 8,000
writedown (3,000)
ANNEX XIII:
The Cliché Company
Statement of Financial Performance
For the period ended June 14, 2018
Revenue:
Store Income P868, 000
Less: Expenses
Advertising Expense P35, 000
Transportation Expense 27,000
Depreciation Expense 8,000 (98, 000)
Income before tax 770,000
Less: Income Tax (30%) 231,000
Income after Tax P539, 000

ANNEX XIV:
PROFIT DISTRIBUTION/SHARING
Dizon Tandoy Suico Total

Salaries
Dizon (10,000 x 12) 120, 000
Tandoy (10,000 x 12) 120, 000
Suico (10,000 x 12) 120, 000 360, 000
Bonus
Suico (539, 000 x 25%) 134, 750 134, 750
Balance
(539, 000-360,0000134,750 =
44,250)
Dizon (44, 250 x 40%) 17, 700
Tandoy (44, 250 x 40%) 17, 700
Suico (44, 250 x 20%) 8, 850 44, 250
Share of Partners P137,700 P137,700 P 236, 600 P 539, 000
ANNEX XV:
The Cliché Company

As of June 22, 2017
ASSETS:
Current Assets
Cash P 1,574,000
Supplies 5,000
Total Current Assets P 1,668, 500
Noncurrent Assets
Total Noncurrent Assets P 335, 000
Total Assets P 2, 003,500

Liabilities
Partner's Capital

current asset.

December 31, 2015
Raw Materials 8,000
writedown (3,000)
ANNEX XVI:
CERTIFICATE OF WITHDRAWAL OF PARTNER FROM BUSINESS UNDER

A FICTITIOUS OR ASSUMED NAME
CERTIFICATE
The following is hereby certified:
1. The undersigned, NILDRED Q. TANDOY , and whose address is
143 Walang Forever Street, Digos City, Philippines , have withdrawn as
a general partner(s) from the partnership doing business under the name of
The Cliché Company.
2. The partnership has the principal place of business located at Bitter Street, Digos City,
Philippines .
STATEMENT OF WITHDRAWAL FROM PARTNERSHIP
OPERATING UNDER FICTITIOUS BUSINESS NAME
The following person(s) has/have withdrawn as a general partner(s) from the partnership
Operating under the fictitious business name of The Cliché Company
Located at Bitter Street, Digos City, Philippines
The fictitious business name statement for the partnership was filed on _14th day of February,
2015 _
In the Country of Philippines.
The full name and residence of the person(s) withdrawing as a partner(s):
NAME: Nildred Q. Tandoy
ADDRESS: 143 Walang Forever Street, Digos City, Philippines
I declare that all information in this statement is true and correct.
(A registrant, who declares as true, information which he or she knows to be false, is guilty of a
crime.)
ANNEX XVII:
The Cliché Company

As of June 22, 2017
ASSETS:
Current Assets
Cash P 1,011,500
Supplies 5,000
Total Current Assets P 1,106,000
Noncurrent Assets
Total Noncurrent Assets P 335, 000
Total Assets P 1, 441,000

Liabilities
Partner's Capital

current asset.
December 31, 2015
Raw Materials 8,000
writedown (3,000)
ANNEX XVIII:
The Cliche' Company

Statement of Liquidation
November 1, 2018
Cash Non-cash assets Liabilities Dizon, Capital Suico, Capital

P/L Percentages 4/6 2/6
Bal. before
Liquidation P 1,011,500 429,500 190,000 657,500 593,500
Sale of NCA & 500,000 (429,000) --- 47,000 23,500
Distribution
of gains ___________ ____________ _________ ____________ _____________
Balances 1,511,500 -0- 190,000 704,500 617,000
Payment of
Liabilities to
Outside creditors (190,000) (190,000) ___________ _____________
Balances 1,321,500 -0- -0- 704,500 617,000
Payment to
partners (1,321,500) (704,500) (617,000)
--0-- --0-- --0-- --0-- --0--
ANNEX XIX:
Books of ‘The Cliché Company’
DATE PARTICULARS DEBIT CREDIT

June 14, 2016 Cash 265,000
Supplies 5,000
Furniture and Fixtures 170,000
Notes Payable 30,000
To record the formation of partnership.
June 14, 2016 Cash 630,000

Advertising Expense 25,000
Income Tax Expense 270,000
Store Income 860,000
Other Income 340,000
To record the income and expenses for the
year.
June 14, 2016 Store Income 860,000

Other Income 340,000
Income and Expense Summary 630,000
To close income and expense accounts to
Income and Expense Summary.
June 14, 2016 Income and Expense Summary 630,000

To close profit to partner’s capital accounts
June 22, 2017 Dizon, Capital 50,200

Suico, Capital 100, 400
To record bonus to new partner.
June 22, 2017 Cash 140,000
Accounts Payable 70,000
Allow. for Uncollectible Account 500
To record the investment of Suico in the
partnership.
June 14, 2018 Cash 539,000

Store Income 868,000
To record the income and expenses for the
year.
June 14, 2018 Store Income 868,000

Income and Expense Summary 539,000
To close income and expense accounts to
Income and Expense Summary.
June 14, 2018 Income and Expense Summary 539,000

To close profit to partner’s capital accounts
August 14, 2018 Tandoy, Capital 787,500

Cash 562,500
To record withdrawal of Tandoy with bonus
to continuing partners.
November 1, 2018 Cash 500,000

Allowance for Uncollectible Account 500
Supplies 5,000
Furniture and Fixtures 170,000
Gain on Realization 70,500
To record sale of non-cash assets.
November 1, 2018 Gain on Realization 70,500
To close gain on realization to partner’s
capital accounts.
November 1, 2018 Accounts Payable 70,000

Notes Payable 30,000
Cash 190,000
To record payment of liabilities.
November 1, 2018 Dizon, Capital 704,500

Cash 1,321,500
To record distribution of cash to partners.

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ACCOUNTING 10

ADVANCED FINANCIAL ACCOUNTING

The books of the partnership after formation is shown on Annex XIX.

The partners also agreed about the following terms:

 Each partner must receive 12, 000 salaries each month

See Annex X for the computation of the bonus.

The partners also agreed to the following adjustments in Suico's books:

a. An allowance for uncollectible accounts is to be established 10% of AR

The partners agreed with the following terms:

See Annex XVI for the Certificate of Withdrawal.

Statement of Financial Position after the withdrawal is presented on Annex XVII.

 Non-cash assets were sold at 500,000

General Partnership Agreement

Dana Rosela G. Dizon shall contribute P 120,000

11. Time Devoted to Partnership.

12. Management and Authority.

14. Net Profits Defined.

15. Withdrawal of Partner.

16. Option to Purchase Terminated Interest.

On dissolution of the Partnership by the withdrawal or other act of a Partner, the

18. Buy-Sell Agreement on Death of Partner.

19. Duties of Purchasing Partner.

On dissolution of the Partnership other than as provided in previous paragraphs of this

23. Sole Agreement.

Agreed and signed by:

Dana Rosela G. Dizon Nildred Q. Tandoy

KNOW ALL MEN BY THESE PRESENTS:

And We Hereby Certify:

Name Citizen Residence

Nildred Q. Tandoy Filipino 143 Walang Forever Street,

 To provide products that will satisfy the consumers.

Name Amount Contributed

Signed in the presence of:

Dana Rosela G. Dizon Nildred Q. Tandoy

The Dizon Company

Total Assets P 150,000

LIABILITIES & EQUITY

Notes Payable P 30, 000

Total Liabilities and Equity P 150,000

Note 1 - Compliance with PFRS

Note 2 - Significant Accounting Policies

The components of year-end inventories are as follows:

Total Noncurrent Assets P175,000

Total Assets P460,000

LIABILITIES AND OWNER'S EQUITY

Mortgage Payable P 90, 000

Total Liabilities and Owner's Equity P460,000

Note 1- Compliance with PFRS

Note 2- Significant Accounting Policies

The Dizon Company’s Books

The Cliché Company

LIABILITIES AND PARTNER'S CAPITAL:

Total Liabilities and Partner's Capital P610,000

Note 1 - Compliance with PFRS

Note 2 - Significant Accounting Policies

The components of year-end inventories are as follows:

The Cliché Company

Store Income P860, 000

Add: Other Income 340,000

Total Income P1, 200,000

Advertising Expense P25, 000

Interest Expense 80,000

Supplies Expense 15,000

Utilities Expense 123,000

Transportation Expense 57,000 (300,000)

Income before tax 900,000