BATANGAS STATE UNIVERSITY

A Business Partnership Project for

College of Accountancy, Business, Economics and

International Hospitality Management

BS Accountancy Department

Batangas State University

Batangas City

In Partial Fulfillment

of the Requirements for the Course

ACC 102 – Financial Accounting and Reporting 2

Submitted By:

Castillo, Patricia Nicole V.

Gutierrez, Bhea B.

Javier, Cora J.

Landicho, Loremie Amor O.

Magbojos, Danielle Louisse C.

BSA- 1205

Submitted To:

Mrs. Wennie F. Medina, CPA MBA

 Background of the Business

Polvocs is a locally owned partnership business which was founded last February 25, 2020 by the students
namely Paticia Nicole Castillo, Bhea Gutierrez, Cora Javier, Loremie Amor Landicho and Danielle Louise Magbojos
as requirements for their Finacial Accounting and Reporting II subject with just Php 250 capital shared by each of
them. It is located at Greendreams Avenue, Poblacion, San Pascual, Batangas City, Philippines.
This business produces and offers enticing polvoron products with various flavors such as chocolate,
pinipig, ube, cookies n' cream and milk. It aims to address the increasing demands in sweets and to develop products
that will provide comfort from stressful days in school and work. Polvocs intends to market its product to the
students and stores outside the school through retails and wholesales.

Filipinos are known for their love of sweets, whether it be chocolate, candy, cakes, and even powdered
sweets polvoron as an example. With that, the partners decided to form a partnership and started a business that sells
polvoron which is called “Polvocs”. Polvocs came from the words “polvoron” and “volcano” which means that it is
a way of telling customers and potential ones that the polvoron causes eruption of satisfaction with just one bite just
like what volcanoes do – they erupt. Polvocs is kind of a witty way to explain what the product tastes like as it goes
with the tagline, “Sumasabog sa sarap!”.

The Polvocs are a general and limited partnership business which is owned by 5 people only namely
Patricia Nicole Castillo, Bhea Gutierrez, Cora Javier, Loremie Landicho and Danielle Magbojos. Since the business
are general and limited partnership, the partner namely Patricia Castillo is all completely responsible for the
liabilities of the business she is the general partner which the partners have unlimited liability. And Bhea Gutierrez,
Cora Javier, Loremie Landicho and Danielle Magbojos are the limited partners where their assets and liabilities are
separate from the business, they contribute some capital for the business. In limited partners it is separate legal
existence where they are the capitalist. The partnership will be managed by the general partner. The partners of the
business have contributed money, property or industry as their shares to make the business possible
 ARTICLES OF PARTNERSHIP
of
POLVOCS Partnership

KNOW ALL MEN BY THESE PRESENTS:

That we, the undersigned, all of legal age and residents of the Republic of the Philippines have agreed to
amend a limited partnership under the terms and conditions herein set forth and subject to the provisions of existing
laws of the Republic of the Philippines.

AND WE HEREBY CERTIFY:

ARTICLE I. Partnership Name: That the name of the partnership shall

POLVOCS Partnership

ARTICLE II. Principal Place of the Business: That the principal office of the Partnership shall be
located at Address: Greendreams Avenue, Poblacion, San Pascual, Batangas City, Philippines.

ARTICLE III. Partners’ Circumstances: That the names, citizenship, residence and designation of
the partners of said partnership are as follows:

Name Citizenship Residences Designation

Castillo, Patricia Nicole V. Filipino Batangas City General Partner

Gutierrez, Bhea B. Filipino Batangas City Limited Partner

Javier, Cora J. Filipino Batangas City Limited Partner

Landicho, Loremie Amor O. Filipino Batangas City Limited Partner

Magbojos, Danielle Louisse C. Filipino Batangas City Limited Partner

 POLVOCS Partnership
Statement of Financial Position
March 15, 2020

ASSETS

CURRENT ASSETS
Cash ₱ 1, 374. 30
Merchandise Inventory 50.50
Total Current Assets ₱1, 424. 80

NON – CURRENT ASSETS

Store Equipment ₱ 147.75
Total Non- Current Assets ₱ 147.75
TOTAL ASSETS ₱ 1, 572.55
LIABILITIES AND OWNERS EQUITY

CURRENT LIABILITIES
Accounts Payable ₱ 50

TOTAL LIABILITIES ₱ 50

OWNER’S EQUITY

Castillo, Capital ₱ 326.314

Gutierrez, Capital 299.059

Javier, Capital 299.059
Landicho, Capital 299.059
Magbojos, Capital 299.059
Total Owner’s Equity ₱ 1, 522. 55

TOTAL LIABILITIES AND OWNER’S EQUITY ₱ 1, 572.55

 POLVOCS Partnership
Statement of Comprehensive Income
March 15, 2020
NET SALES ₱ 1, 445

Beginning Inventory ₱ 0

Purchases 1, 172.95

Total Goods Available for Sale ₱ 1, 172. 95

Less: Ending Inventory 50.50

COST OF GOODS SOLD ₱ 1,122.45

GROSS PROFIT ₱ 322.55

OPERATING EXPENSE

Utilities expense ₱ 50

NET PROFIT ₱ 272.55

POLVOCS Partnership
Profit and Loss Distribution Table
March 15, 2020

AGREEMENT Castillo Gutierrez Javier Landicho Magbojos TOTAL

Bonus (10%*272.55) ₱ 27.255 ₱ 27.255

Balances to be Divided
Equally:
[(272.55-27.255 = 245.295)]
Castillo (245. 295*20%) ₱ 49.059
Guiterrez (245. 295*20%) ₱ 49.059
Javier (245. 295*20%) ₱ 49.059
Landicho (245. 295*20%) ₱ 49.059
Magbojos (245. 295*20%) ₱ 49.059
₱245.295

Share of Partners in Profit ₱ 76.314 ₱ 49.059 ₱49.059 ₱ 49.059 ₱ 49.059 ₱ 272.55

POLVOCS Partnership
Statement of Liquidation

April 30, 2020