Maghuyop, Rhansryne L.

BSA - 3

Date Particulars Debit Credit

02/14/19 Cash ₱630,000
Computer Equipment (net) 160,000
Inventory 150,000
Building 500,000
Delivery Van 950,000
Mortgage Payable ₱250,000
Al, Capital 560,000
Dub, Capital 1,580,000
To record the investment of Al
and Dub

12/31/19 Income and Expense Summary ₱400,000

Al, Capital ₱101,625
Dub, Capital 298,375
To record partner’s salary and
interest

12/31/19 Cash ₱400,000

Income and Expense Summary ₱400,000

01/01/20 Al, Capital ₱174,000

Dub, Capital 174,000
Cash 200,000
Nation, Capital ₱548,000
To record admission of new
partner

12/31/20 Income and Expense Summary ₱500,000

Al, Capital ₱200,000
Dub, Capital 200,000
Nation, Capital 100,000
To record the distribution of
income

12/31/20 Cash ₱500,000

Income and Expense ₱500,000

01/01/21 Computer Equipment ₱10,000

Al, Capital ₱4,000
Dub, Capital 4,000
Nation, Capital 2,000
To record overdepreciation

01/01/21 Al, Capital ₱12,000

Dub, Capital 12,000
Nation, Capital 6,000
Inventory ₱30,000
To record overvaluation
01/01/21 Al, Capital ₱169,906
Dub, Capital 474,094
Nation, Capital 161,000
Forever, Capital ₱805,000
To record purchase of interest

Jan 2021 Al, Capital ₱90,000

Dub, Capital 90,000
Nation, Capital 45,000
Forever, Capital 75,000
Cash 570,000
Non-Cash Assets ₱870,000
To record realization of
assets

Jan 2021 Liabilities ₱250,000

Cash ₱250,000
To settle liabilities

Jan 2021 Al, Capital ₱158,719

Dub, Capital 1,071,281
Nation, Capital 307,500
Forever, Capital 512,500
Cash ₱2,050,000
To record distribution to
partners

Jan 2021 Al, Capital ₱30,000

Dub, Capital 30,000
Nation, Capital 15,000
Forever, Capital 25,000
Cash 770,000
Non-cash Assets ₱870,000
To record sale of noncash
assets

Dec 2021 Al, Capital ₱231,000

Dub, Capital 231,000
Nation, Capital 115,500
Forever, Capital 192,500
Cash ₱770,000
To record final settlement
upon termination of
partnership
 SOLUTIONS

12/31/19

AL DUB TOTAL
Salaries ₱87,500 ₱131,250 ₱218,750
[100,000 x (10.5 months / 12)] [150,000 x (10.5 / 12)]
Interest 84,000 237,000 321,000
(560,000 x 15%) (1,580,000 x 15%)
Remainder (69,875) (69,875) (139,750)
Total ₱101,625 ₱298,375 ₱400,000
Beg. Cap 560,000 1,580,000
New Cap ₽661,625 ₽1.878,375

Al 661,625 487,625 (174,000)

Dub 1,878,375 1,704,375 (174,000)
Total 2,540,000 2,192,000 (348,000)
Nation 200,000 548,000 348,000
(2,740,000 x 20%)
Total ₱2,740,000 ₱2,740,000

* Distribution of capital of 3 partners:

Al (40%) Dub (40%) Nation (20%) Total

₱200,000 ₱200,000 ₱100,000 ₱500,000

* Computer equipment revaluation

Al (40%) Dub (40%) Nation (20%) Total

₱4,000 ₱4,000 ₱2,000 ₱10,000

* Inventory revaluation

Al (40%) Dub (40%) Nation (20%) Total

(₱12,000) (₱12,000) (₱6,000) (₱30,000)

* New Capital of Old Partners

AL DUB NATION
Capital 487,625 1,704,375 548,000
Profit 200,000 200,000 100,000
Total 687,625 1,904,375 648,000
Adjustments 4,000 4,000 2,000
(12,000) (12,000) (6,000)
New Cap ₱679,625 ₱1,896,375 ₱644,000

* Admission of Forever

Al 679,625 (1/4) 169,906 509,719

Dub 1,896,375 (1/4) 474,094 1,422,281
 Nation 644,000 (1/4) 161,000 483,000
Forever 805,000 805,000

* Loss Realization of Noncash Assets

Al (30%) Dub (30% Nation (15%) Forever Total (100%)

(25%)
1st (90,000) (90,000) (45,000) (75,000) (300,000)
realization

* Distribution to Partners

Al Dub Nation (15%) Forever (25%) Total

158,719 1,071,281 307,500 512,500 ₱2,050,000

* 2nd realization

Al (30%) Dub (30% Nation (15%) Forever Total (100%)

(25%)
1st (30,000) (30,000) (15,000) (25,000) (100,000)
realization

* Final Settlement

Al (30%) Dub (30% Nation (15%) Forever Total (100%)

(25%)
231,000 231,000 115,500 192,500 770,000