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  • Partnership Formation

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    Jasmine Acta
    15 views12 pages
    1. The document records the contributions of various owners/partners to establish new books for a partnership between Telka and Bobay. 2. It is then decided that the books of Telka will be used as the partnership books, so the contribution of Bobay is recorded in Telka's books. 3. Finally, it is decided that the books of Bobay will instead be used as the partnership books.

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    1. The document records the contributions of various owners/partners to establish new books for a partnership between Telka and Bobay. 2. It is then decided that the books of Telka will be used as the partnership books, so the contribution of Bobay is recorded in Telka's books. 3. Finally, it is decided that the books of Bobay will instead be used as the partnership books.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    15 views12 pages

    Partnership Formation

    Uploaded by

    Jasmine Acta
    1. The document records the contributions of various owners/partners to establish new books for a partnership between Telka and Bobay. 2. It is then decided that the books of Telka will be used as the partnership books, so the contribution of Bobay is recorded in Telka's books. 3. Finally, it is decided that the books of Bobay will instead be used as the partnership books.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 12

    GENERAL JOURNAL

    Date
    Account Titles and Explanation P.R. Debit

    1.. Cash ₱ 1,000,000.00


    Arsen, Capital
    Joseph, Capital
    To record the contribution of the owners

    2 Cash 900,000.00
    Service Vehicle 250,000.00
    Merchandise Inventory 350,000.00
    Arsen, Capital
    Joseph, Capital
    Dan, Capital
    To record the contribution of the owners

    3 Cash 300,000.00
    Equipment 150,000.00
    Land 500,000.00
    Mortgage Payable
    Bal, Capital
    Aaron, Capital
    Romel, Capital
    To record the contribution of the owners

    4 Cash 500,000.00
    Darlene, Capital
    Jireh, Capital
    To record the contribution of the owners

    Balance 3,950,000.00
    GJ-1

    Credit

    ₱ 500,000.00
    500,000.00

    500,000.00
    500,000.00
    500,000.00

    200,000.00
    350,000.00
    300,000.00
    100,000.00

    200,000.00
    300,000.00

    3,950,000.00
    1. A new set of books will be used by the partnership

    Telka Books
    GENERAL JOURNAL

    Date
    Account Titles and Explanation P.R. Debit

    Adj 1 Telka, Capital ₱ 500.00


    Allowance for Doubtful Accounts

    adj 2 Telka, Capital 5,000.00


    Supplies Inventory

    adj 3 Telka, Capital 7,000.00


    Accumulated Depreciation

    Closing Allowance for Doubtful Accounts 3,500.00


    Accumulated Depreciation 7,000.00
    Accounts Payable 10,000.00
    Telka, Capital 149,500.00
    Cash
    Accounts Receivable
    Supplies Inventory
    Tools and Equipment

    Balance 182,500.00

    Bobay Books
    GENERAL JOURNAL

    Date
    Account Titles and Explanation P.R. Debit

    Adj 1 Bobay, Capital ₱ 500.00


    Allowance for Doubtful Accounts

    Adj 3 Bobay, Capital 6,000.00


    Accumulated Depreciation

    Closing Allowance for Doubtful Accounts 1,500.00


    Accumulated Depreciation 6,000.00
    Accounts Payable 52,000.00
    Bobay, Capital 90,500.00
    Cash
    Accounts Receivable
    Supplies Inventory
    Tools and Equipment

    Balance 156,500.00

    PARTNERSHIP BOOKS
    GENERAL JOURNAL

    Date
    Account Titles and Explanation P.R. Debit

    Cash 25,000.00
    Accounts Receivable 15,000.00
    Supplies Inventory 50,000.00
    Tools and Equipment 54,000.00
    Allowance for Doubtful Accounts
    Accounts Payable
    Bobay, Capital
    To record the contribution of Bobay to the partnership

    Cash 15,000.00
    Accounts Receivable 35,000.00
    Supplies Inventory 50,000.00
    Tools and Equipment 63,000.00
    Allowance for Doubtful Accounts
    Accounts Payable
    Telka, Capital
    To record the contribution of Telka to the partnership

    Balance 307,000.00

    2.The books of Tekla will be used as partnership books

    Bobay Books
    GENERAL JOURNAL

    Date
    Account Titles and Explanation P.R. Debit
    Adj 1 Bobay, Capital ₱ 500.00
    Allowance for Doubtful Accounts

    Adj 3 Bobay, Capital 6,000.00


    Accumulated Depreciation

    Closing Allowance for Doubtful Accounts 1,500.00


    Accumulated Depreciation 6,000.00
    Accounts Payable 52,000.00
    Bobay, Capital 90,500.00
    Cash
    Accounts Receivable
    Supplies Inventory
    Tools and Equipment

    Balance 156,500.00

    Telka Books
    GENERAL JOURNAL

    Date
    Account Titles and Explanation P.R. Debit

    Adj 1 Telka, Capital ₱ 500.00


    Allowance for Doubtful Accounts

    adj 2 Telka, Capital 5,000.00


    Supplies Inventory

    adj 3 Telka, Capital 7,000.00


    Tools and Equipment

    Bobay Cash 25,000.00


    Accounts Receivable 15,000.00
    Supplies Inventory 50,000.00
    Tools and Equipment 54,000.00
    Allowance for Doubtful Accounts
    Accounts Payable
    Bobay, Capital
    To record the contribution of Bobay to the partnership
    Balance 156,500.00

    3. The books of Bobay will be used as partnership books

    Telka Books
    GENERAL JOURNAL

    Date
    Account Titles and Explanation P.R. Debit

    Adj 1 Telka, Capital ₱ 500.00


    Allowance for Doubtful Accounts

    adj 2 Telka, Capital 5,000.00


    Supplies Inventory

    adj 3 Telka, Capital 7,000.00


    Accumulated Depreciation

    Closing Allowance for Doubtful Accounts 3,500.00


    Accumulated Depreciation 7,000.00
    Accounts Payable 10,000.00
    Telka, Capital 149,500.00
    Cash
    Accounts Receivable
    Supplies Inventory
    Tools and Equipment

    Balance 182,500.00

    Bobay Books
    GENERAL JOURNAL

    Date
    Account Titles and Explanation P.R. Debit

    Adj 1 Bobay, Capital ₱ 500.00


    Allowance for Doubtful Accounts

    Adj 3 Bobay, Capital 6,000.00


    Tools and Equipment

    Telka Cash 15,000.00


    Accounts Receivable 35,000.00
    Supplies Inventory 50,000.00
    Tools and Equipment 63,000.00
    Allowance for Doubtful Accounts
    Accounts Payable
    Telka, Capital
    To record the contribution of Telka to the partnership

    Balance 169,500.00
    GJ-1

    Credit

    ₱ 500.00

    5,000.00

    7,000.00

    15,000.00
    35,000.00
    50,000.00
    70,000.00

    182,500.00

    GJ-1

    Credit

    ₱ 500.00

    6,000.00
    25,000.00
    15,000.00
    50,000.00
    60,000.00

    156,500.00

    GJ-1

    Credit

    1,500.00
    52,000.00
    90,500.00

    3,500.00
    10,000.00
    149,500.00

    307,000.00

    GJ-1

    Credit
    ₱ 500.00

    6,000.00

    25,000.00
    15,000.00
    50,000.00
    60,000.00

    156,500.00

    GJ-1

    Credit

    ₱ 500.00

    5,000.00

    7,000.00

    1,500.00
    52,000.00
    90,500.00
    156,500.00

    GJ-1

    Credit

    ₱ 500.00

    5,000.00

    7,000.00

    15,000.00
    35,000.00
    50,000.00
    70,000.00

    182,500.00

    GJ-1

    Credit

    ₱ 500.00

    6,000.00
    3,500.00
    10,000.00
    149,500.00

    169,500.00

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