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    Partnership Formation Sample

    Uploaded by

    Kate Clidoro
    Espanol operated a specialty fishing shop and plans to form a partnership with Quino. Espanol will transfer all assets and liabilities to the partnership based on agreed upon revalued amounts. Journal entries will be made to record the transactions in the partnership books. An opening statement of financial position will also be prepared for the partnership.

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    Partnership Formation Sample

    Uploaded by

    Kate Clidoro
    23 views6 pages
    Espanol operated a specialty fishing shop and plans to form a partnership with Quino. Espanol will transfer all assets and liabilities to the partnership based on agreed upon revalued amounts. Journal entries will be made to record the transactions in the partnership books. An opening statement of financial position will also be prepared for the partnership.

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    © © All Rights Reserved

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    Espanol operated a specialty fishing shop and plans to form a partnership with Quino. Espanol will transfer all assets and liabilities to the partnership based on agreed upon revalued amounts. Journal entries will be made to record the transactions in the partnership books. An opening statement of financial position will also be prepared for the partnership.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    23 views6 pages

    Partnership Formation Sample

    Uploaded by

    Kate Clidoro
    Espanol operated a specialty fishing shop and plans to form a partnership with Quino. Espanol will transfer all assets and liabilities to the partnership based on agreed upon revalued amounts. Journal entries will be made to record the transactions in the partnership books. An opening statement of financial position will also be prepared for the partnership.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 6

    Espanol operated a specialty shop that sold fishing equipment and acc

    Cash
    Accounts Receivable
    Allowance for Uncollectible Accounts
    Inventory
    Equipment
    Accumulated Depreciation
    Accounts Payable
    Espanol, Capital

    Espanol plans to enter into a partnership with trusted associate, Quino


    is to transfer all assets and liabilities of her shop to the partnership afte

    Quino will invest cash equal to Espanol's investment after revaluation.


    Inventory, P460,000; and equipment (net), P124,000. The partnership

    Prepare the opening journal entries in the books of the partnership

    Prepare the partnership's statement of financial position as at the date

    AJE AR 6,000.00
    CAPITAL 6,000.00

    INVENTORY 20,000.00
    CAPITAL 20,000.00
    EQUIPMENT 64,000.00
    CAPITAL 64,000.00
    ng equipment and accessories. Her post-closing trial balance on December 31, 2018 is a

    Debit Credit Adjustment


    36,000.00 -
    150,000.00 6,000.00
    16,000.00 -
    440,000.00 20,000.00
    135,000.00 64,000.00
    75,000.00 -
    30,000.00 -
    640,000.00 90,000.00
    761,000.00 761,000.00

    sted associate, Quino, effective January 1, 2019. Profits or loss will be shared equally. E
    o the partnership after revaluation.

    ent after revaluation. The agreed values are as follows: accounts receivable (net), P140
    000. The partnership will operate under the business name of Fish R' Us.

    of the partnership

    osition as at the date of formation of the partnership


    BOOKS OF T
    Espanol

    AR, Unadjuste 150,000.00 Cash


    AUA 16,000.00 Accounts Receivable
    Net AR, Unadj 134,000.00 Inventory
    Agreed 140,000.00 Equipment
    (6,000.00)
    Quino
    Equip, Unadjus 135,000.00 Cash
    AD 75,000.00
    Net Equip, Una 60,000.00
    Agreed 124,000.00
    (64,000.00)

    STATEM

    Cash
    Accounts Receivable
    Inventory
    Equipment

    Accounts Payable
    Espanol, Capital
    Quino, Capital
    ber 31, 2018 is as follows:
    Adjusted
    Debit Credit
    36,000.00
    140,000.00
    -
    460,000.00
    124,000.00

    30,000.00
    730,000.00
    760,000.00 760,000.00

    hared equally. Espanol

    able (net), P140,000;

    BOOKS OF THE PARTNERSHIP

    36,000.00
    Receivable 140,000.00
    460,000.00
    124,000.00
    Accounts Payable 30,000.00
    Espanol, Capital 730,000.00
    730,000.00
    Quino, Capital 730,000.00

    STATEMENT OF FINANCIAL POSITION


    ASSETS
    766,000.00
    eceivable 140,000.00
    460,000.00
    124,000.00
    Total Assets 1,490,000.00

    LIABILITIES & CAPITAL


    30,000.00
    730,000.00
    730,000.00
    Total Liabilities & Capital 1,490,000.00

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