Exercise 1-2

1 Partnership
2 Industrial partner
3 General partnership
4 Nominal partner
5 Mutual agency
6 Articles of Co-partnersbip
7 General partner
8 Co-ownership of property
9 Fair market value
10 Memorandum entry

Exercise 1-3
1 False-skills, labor expertise
2 False-memorandum entry
3 1
4 False=gross value
5 False
6 False=secret partner
7 1
8 1
9 1
10 1
 Exercise I - 4

CASE A
July 1 Cash
Office Equipment
Rose, Capital
To record the investment of Rose.

1 Office Furniture and Fixture

Guada, Capital

1 Memorandum entry:
Marie is admitted as an industrial
partner by investing her management
expertise
 CASE B
May y 1 Building
Office Equipment
Mortgage Payable
Romy, Capital

1 Cash
Office Equipment
Furniture and Fixture
Vic, Capital

Case C
July 4 Office equipment
Rosario, Capital
 4 Accounts receivable
Furniture and Fiuxtures
Allowance for Doubtful Accounts
Guadalupe, Capital

4 Cash
Office supplies
Maria, Capital

CASE C
July 4 Office Equipment
Rosario, Capital

4 Accounts Receivable
Furniture and Fixtures
Allowance for Doubtful Accounts
Guadalupe, Capital

4 Cash
Office Supplies
Maria, Capital
 Exercise 1-4 C

RGM Partnership
Statement of Financial Position
4-Jul-12

Assets
nt Assets
Cash
Trade and other receivables (Note1)
Prepaid expenses (Note 2)

on- Current Assets

Plant, Property and Equipment(Note 3)

Total Assets

Partners' Equity
Partners' Equity
Rosario, capital
Guadalupe, capital
Maria. Capital

and Partners' Equity

NOTES TO FINANCIAL STATEMENTS

Note 1 Trade and other receivables
Accounts receivable
Less:Allowance for Bad Debts
Net realizable value

2 Prepaid expenses
Office supplies
3 Plant, property and equipment
Office equipment
Funriture and fixtures
500,000
45,000
545,000

100,000
100,000
1,500,000
30,000
300,000
1,230,000

550,000
220,000
50,000
820,000

320,000
320,000
 95,000
140,000
10,000
225,000

205,000
12,000
217,000

320,000
320,000

95,000
140,000
10,000
225,000

205,000
12,000
217,000
P 205,000
85,000
12,000 P 302,000

460,000

P 762,000

P 320,000
225,000
217,000

P 762,000

P 95,000
10,000
P 85,000

P 12,000
P 320,000
140,000
P 460,000
Exercise 1-4 C

RGM Partnership
Statement of Financial Position
4-Jul-12

Assets
Current Assets
Cash P 205,000
Trade and other receivables (Note1) 85,000
Prepaid expenses (Note 2) 12,000

Non- Current Assets

Plant, Property and Equipment(Note 3)

Total Assets

Partners' Equity
Partners' Equity
Rosario, capital
Guadalupe, capital
Maria. Capital

Total Liabilities and Partners' Equity

NOTES TO FINANCIAL STATEMENTS

Note 1 Trade and other receivables
Accounts receivable
Less:Allowance for Bad Debts
 Net realizable value

2 Prepaid expenses
Office supplies

3 Plant, property and equipment

Office equipment
Funriture and fixtures
P 302,000

460,000

P 762,000

P 320,000
225,000
217,000

P 762,000

P 95,000
10,000
P 85,000

P 12,000

P 320,000
140,000
P 460,000
 BOOKS OF PARTNERSHIP

Oct 1 Cash
Accounts receivable
Landscaping supplies
Furniture and Equipment
Allowance for bad debts
Accounts payable
Francis, Capital
To record Francis' investment

1 Cash
Pio, Capital
To record Pio's investment
 130,000
720,000
560,000
800,000
10,800 Current Assets
565,000
1,634,200

Non-Current Assets
1,634,200
1,634,200
Total assets

Current liabilities

Partners' Equity

Total Liabilities and Partners' Equity

NOTES TO FINANCIAL STATEMENTS

Note 1 Trade and other receivables
Accounts receivable
Less: Allowance for Bad Debts
Net realizable value

2 Prepaid expenses
Landscaping supplies

3 Plant, property and equipment

Furniture and Equipment

4 Trade and other payables

 Francis and Pio Limited
Statement of Financial Position
October 2, 2012

Assets
Current Assets
Cash P 1,764,200
Trade and other receivables (Note 1) 709,200
Prepaid expenses (Note 2) 560,000 P

Non-Current Assets
Plant, Property and Equipment (Note 3)

Total assets P

Liabilities & Partners' Equity

Current liabilities
Trade and other payables (Note 4) P

Partners' Equity
Francis, Capital P 1,634,200
Pio, Capital 1,634,200

Total Liabilities and Partners' Equity P

O FINANCIAL STATEMENTS
Trade and other receivables
Accounts receivable P 720,000
Less: Allowance for Bad Debts 10,800
Net realizable value P 709,200

Prepaid expenses
Landscaping supplies P 560,000

Plant, property and equipment

Furniture and Equipment P 800,000

Trade and other payables

Accounts payable P 565,000
3,033,400

800,000

3,833,400

565,000

3,268,400

3,833,400
 Balance per books
Debit Credit
Cash 130,000
Accounts Receivable 720,000
Allowance for Bad Debts 8,000
Landscaping Supplies 550,000
Furniture and Equipment 1,000,000
Accumulated Depreciation 100,000
Accounts Payable 565,000
Francis, Capital 1,727,000

2,400,000 2,400,000
ADJUSTMENTS AGREED VALUE
Debit Credit Debit Credit
130,000
720,000
2,800.00 10,800
10,000.00 560,000
100,000.00 800,000

565,000
2,800.00 10,000.00
100,000.00 1,634,200

112,800 112,800 2,210,000 2,210,000

 AM Catering Services

Statement of Financial Position

April 2, 2012

Assets

Current Assets

Cash P 132,750

Trade and other receivables (Note 1) 67,500

Prepaid expenses (Note 2) 15,000 P 215,250

Non-Current Assets

Plant, Property and Equipment(Note 3) 110,000

Total assets P 325,250

Liabilities & Partners' Equity

Current liabilities

Trade and other payables (Note 4) P 8,000

Partners' Equity
Anne, Capital P 211,500
Mary, Capital 105,750 317,250

Total Liabilities and Partners' Equity P 325,250

Investment
1 Cash 50,000
Accounts receivable 20,000
Office supplies 4,000
Office equipment 70,500
Furniture and fixture 35,000
Allowance for doubtful accounts 2,000
Accounts payable 15,000
Michael, Capital 162,500

1 Cash 30,000
Accounts receivable 18,000
Office supplies 5,000
Office equipment 52,500
Furniture and fixture 25,000
Allowance for doubtful accounts 1,800
Accounts payable 10,000
Rafael, Capital 118,700
 Rand M Ltd.
Statement of Financial Position
January 2, 2012

Assets Notes
Current Assets
Cash P 80,000
Trade and other receivables 1 34,200
Prepaid expenses 2 9,000 P 123,200

Non- Current Assets

Plant, Property and Equipment 3 183,000

Total Assets P 306,200

Liabilities & Partners' Equity

Current liabilities
Trade and other payables 4 P 25,000

Partners' Equity
Michael, capital P 162,500
Rafael, capital 118,700 281,200

Total Liabilities and Partners' Equity P 306,200

EXERCISE 1-8

1 Ignatius' investment P
Divided by Ignatius' interest
Total partners' capital P
Multiplied by Dominic's interest
Dominic's investment P
Less Cash P 195,000
Building net of mortgage 650,000
ADDITIONAL CASH INVESTMENT P

2 Therese Capital P
Add(less) adjustments
Increase in allowance P (1,500)
Increse in inventories 6,000
Unrecorded prepaid expenses 6,500
Accrued interest (500)
Therese Adjusted Capital P
Divided by Therese' interest
Total partners' capital P
Multiplied by Catherines's interest
Catherine's investment P
 387000
30%
1,290,000
70%
903,000

845,000
58,000

105,000

10,500
115,500
30%
385,000
70%
269,500