lOMoARcPSD|9354840

Accounting for Partnerships

Accountancy (De La Salle University)

StuDocu is not sponsored or endorsed by any college or university

Downloaded by Jean Del Ro (drjean008@gmail.com)
 lOMoARcPSD|9354840

Ac
count
i
ngf
orPa
rtne
rshi
ps  Own erg et
sa l
lt
hepro
fi
ts
 Wi t
h drawa l
anyt
ime
T
ypesof
Bu sinessOperati
on: Di
sadv
antage s:
 Ser v
iceBu si
ness  Noi ndefi
nit
eli
f
e
o Pr ovi
desint
angi
bleproduc
tsorser
vi
ces  Difficu
lttoexpand
o Off e
rp rof
essi
onals k
il
ls
,e xper
ti
se,  Un l
i mi
tedl i
abi
l
it
y–c r
edi
to
rsofth
ebu
s i
nes
smay
advi
ce,et
c. goa ft
ert heperso
nalass
etsoft
heowneri
ft
he
 Me rchandis
ing businessc a
nnotpayt
hem.
o Bu ysands e
llgoodsormerchan
dise
o Pr oces
so fma nagin
ga ndma rk
eti
ngo f Re
gis
trat
i
on:
produc
ts  De par
tmen
to fTr
adeandI
ndus
tr
y( DTI)und
er
 Me rchandis
ing Bur
eauo fT r
ade Re
gul
at
io
na nd Co ns
umer
o En gagedintheproduct
i
ono fi
t
ems Pro
tec
ti
on
o Pu rchas
ing a nd c on
vert
in
g o fr aw  Se cur
i
ti
esandExc
hang
eCommis
sio
n( SEC)
ma t
eri
al
stofi
nish
e dgoods
o Ov erheadc ost
s,wa geso rlab
or,raw 2
.Co r
pora
tion –ha
sse
par
at
ele
galp
ers
ona
li
ty
ma t
eri
al
susedinthep r
oduct
i
ono fg
oods f
r
omitsowner
s.
o Ca ref
ulpl
anningi
nv o
lve
d
 Hy bri
d Ma
nage
me nt:
o T ypeso fbusine
sst hatfal
lint
ot hr
ee  Stockc orpor ati
on–Bo a r
do f
Dire
ctor
s
cate
gori
es o St oc kholde r–i nvest
orrepres
e n
tedby
share so fstock.Limi
tedinv
o l
vementbut
T
ypesofOrganiz
ati
on: en j
oyl i
mitedlia
b i
li
t
y.
 LimitedL i
a bi
li
tyCo mpa ny–h yb
ri
df or
mso f o I ncor porators – me mbers o fthe
b
u s
inesstha th av
ec haract
eri
st
icso fbotha comp any.5to1 5.
c
o r
por
a t
io
na ndap art
ners
hip. o Bo ardo fDirectors–h ascont
roloft
he
o No ti nc
o r
porat
ed;hence,co n
sid
ereda corpo rat
ion.
cor
p or
ati
onb ut
enjoy
slimit
edli
abi
li
t
y.  Non- s
toc kc orporation–Bo ardofTru
stees
o Ca nb ee l
ect
edt ot axa ss ol
e, o Co rpora t
es–i nvestor
sinthecompany.
part
n er
ship
,oracorpor
a t
i
on. o Pr efe rences hares–n ov oti
ngrigh
ts,
 Co operat
ive–o wnedbyag roupo fi
ndiv
idu
als prio
rityo ve
r comp any’
sinc
ome .
o
p er
at
e df
or th
eirmutual
benefi
t o Commons tock–h a
svoti
ngrig
h t
s
o Pe rsonsma ki
ngu pthegrouparecal
led
memb ers. Adv
ant
ages:
o Ma yb eincor
por
atedorunin
corpor
at
ed  Mo recapi
tal
o Du lyregis
ter
edassoci
ati
ono fp
erson
s  Ca naff
ordtohi
reexpe
rt
s
o Co mmo nbondofi
n t
er
es t  Ha sp erpet
uale x
is
tenceb as
edo n Re
vis
ed
o Vo l
u nt
aril
yjo
ined Cor
p o
rat
ionCode
o Sma ll
producer
sandco nsu
me r
s  Mo rest
able
 Higheramo un
tsofpr
ofi
t
Adv
ant
ages:  All
owso ne-mancor
porat
io
n
 Pric
eso ff
ere
dtocon
sumer
sarel
ower
edd
uet
o  Co nt
inuousexi
st
ence
di
r
ectpurc
h a
se  Sh ar
eso fstoc
kc anb et r
ansf
er
re
d wit
hout
 Ma nag
eb ytheme
mb e
rst
hems
elv
es co
nsent
 Stockhol
derhasli
mit
edli
abi
li
t
y
Di
sadv
ant
ages:
 L i
mit
edcap i
tal
duetoun
pri
vi
lege
d Di
sadv
ant
ages:
 L a
ckofeffic
ien
tmanage
me nt  Mo r
elegalandt
axrequi
r
ements
 Stri
ct
lyforme mbersonl
y,share
sca
nno
tbe  Go ve
rnmen t
exer
ci
sestr
i
ctcon
tr
ol
t
ra
nsfe
rr
edt on o
n-member
s  Sh a
rehol
derhasl
it
tl
eornopar
ti
ci
pat
i
on
 Dist
ri
but
iono fnetinco
med epend
su p
onthe
F
ormsofBusi
ness: de
cla
rat
ionofdi
vi
dendsbyboa
rdofdi
r
ect
or
s.
1.SolePropr
ie
tor
shi
p-o
ne-
per
son
,sma
lle
nti
t
ies
.  F o
rmalorimper
sona
lrel
at
io
nshi
p

Adv
ant
age
s: Re
gis
tra
tionandLa ws:
 Easyt
os e
t-u
p  Se curi
t
iesandExchangeCommis
sion(
SEC)
 Least
cost
ly(e
asei
nfor
mat
i
on)  L i
feshoul
dn ot
exceedfi
ft
yyea
rs
 Smalla
mo unt
ofcap
it
al  Ex ten
sio
no fanot
herfif
tyyear
smo stnotbe
 Canbema nagede
asi
ly aff
ect
ede a
rl
iert
hanfi
veyear
sbef
oreex
pir
at
ion

Downloaded by Jean Del Ro (drjean008@gmail.com)

 lOMoARcPSD|9354840

 Rep
ubl
i
cAc
t11
232
,Fe
bru
ary2
019–r
evi
si
ono
f l
imit
edi nproporti
ontothea mo untthe
y
l
aws havea greedt oc ontr
ibutet ot h
e
part
nershi
p.
o Ha ven op e
rsonalli
abil
i
tyforthedebtsof
3.Par
tner
ship t
h epartner
shipb ey
ondtheircontr
ibut
io
n
 Abusi
nesswit
htwoo rmo r
eowner
sthati
snot i
nt h
eb usi
nes s
or
gani
zedasacorpor
ati
on. o Us uall
yh avefirstclai
mt op r
ofi
tsa n
d
 I
nt
enti
ontodi
vi
dep r
ofi
t
sa mon
gth
emsel
ves. l
ossesb utonl
yu ptoac er
tai
nlimit
 Le
galenti
t
yg ui
dedbyt h
erul
esandre
gula
ti
ons o Ha veli
mi t
edp ot
enti
alforpr
ofi
ts
pu
tupbye ac
hstat
e. o Ha sn ou n
li
mitedli
abi
li
ti
es.
 Capit
a l
i
s tPartner
Pa
rtne
rshipCharact
e r
ist
ic
s /
F ea
ture
s: o Co ntr
ibute
smo neyo rpropert
yintr
ot h
e
 Vo lunt
aryAssoci
ati
on part
nershi
pfund.
 Wr i
tt
enagreement  I
ndus tr
ialPartner
 L imit
edli
fe o Co ntr
ibute
sin d
us t
ryorserv
iceo nl
y.
 Mu t
ualagency o Al so
,ag ene r
alp ar
tner
,wi t
hu nli
mite
d
 Un l
i
mite
dl i
ab i
l
it
y–i nvol
vesgener
alpar
tne
rs, l
iabi
li
t
ya n
di sn otal
lowedt oe n
gagein
own er
sa r
el i
abl
ef ora l
lbusi
nes
sd eb
tsift
he anyo th
erk i
ndo fb usi
n essu n
less
busine
ssc a
n’tpay
. expr
ess l
ya uthor
ize
d b yt h e o t
her
 Co -
ownershi
ppropert
y part
ners(Art
icl
e1 789)
.
 Co -
ownershi
po f
profi
t
s  Capit
a l
-I
ndus t
r i
al
 T axabl
eEn t
it
y o Co ntr
ibute
d mo ney, p r
o pe
rty, a n
d
 No p ar
tner
ship inc o
me t ax forg ene
ral i
nd u
str
y .
prof
essi
onalpart
ner
s h
ip  OstensiblePartner
 Pa r
tne
rs’cap
ita
laccounts o Kn ownt othepub l
i
cthatheisap art
ner.
 L egalenti
t
y  Secret
o Ac ti
veb utu
n knowntop ub
li
c.
Pa
rtne
rshi
pCo nt
ri
but
ions
:  Si
lent
 Mo ney o No tactiv
einp ar
tic
ipat
ion.
 Pr ope
rt
y  Mana gi
ng
 I nd
ust
ry–pers
onski
ll
san
dse
rvi
ces o Ma na
g esacti
vel
y.
 UniversalPartner
T
ypesofPers
on: o Pa rt
ic
ipati
one xt
endstoe n
ti
reb usi
ness
 Na t
ural–huma
nlega
lent
it
y,as i
ngl
enat
ural  Part
icularPartner
p
e r
son. o Pa rt
ic
ipati
onislimit
edtoau ni
torpartof
 Juridi
cal–n
on-
huma
nleg
alent
it
y,or
gani
zat
i
on ab us
iness
a
u t
hor
ize
dbylawandre
cogni
zeda salegal  RealPar t
ner
p
e r
son. o Ana ct
u a
lpartner
.
 Nomina lPart
ne r
T
ypesof
Pa rt
ner: o Pa rt
ner i
nna meo nl
y.
 Ge neral
pa r
tner
o Ha vet h
ep owert oe n
terb i
ndi
ng Ty
pe sofPart
nership:
agr
eeme nt
so nb ehal
foft
hepart
ner
shi
p AstoLia
bili
ty
o Pr i
ma r
y r esponsi
bl
e a nd u sual
l
y  Ge neral
Pa rtner
ship
oper
atestheb usi
ness. o Un li
mi t
edli
abi
li
ty
o Ha su n
li
mitedpe r
sonall
i
abi
li
ty o Ba sicfor
mo fpart
ners
hip
o Us ual
ly,th
el asttor ec
eiv
eas har
eo f o Ea chp art
neri sa c o-
ownero fthe
pro
fi
tsandlosses busi
n ess
, wi
thallt
hepri
vi
l
egesandris
ks
o Of t
eng et
sa llt
h eexces
sp r
ofi
taft
ert
he ofown er
ship
.
l
imit
edp art
ne r
sg etthei
rshareo ft
he o Pro fi
tsa ndlo ss
eso fthep ar
tner
shi
p
i
ncome. passt hr
ought othepar
tner
s,whothen
o Re quir
emen t i n f or
ming l i
mit
ed payp ers
o na
lincometaxont h
eirshar
e
par
tner
s h
ip. oftheincome.
 Limitedpart
ne r o All part
nersaregener
alpar
tn
ers
o Pa ssi
veinvesto
rs o Pa rt
n er
s a re l i
abl
e to p ar
tner
shi
p
o On ewh oinvestcashorpr
opert
y. cr
e di
tor
se venu ptotheexten
to ft
hei
r
o Do esn otp art
ici
pat
ei nthed ay
-t
o-da
y personalp roper
ti
ese speci
al
ly when
oper
ati
onso fth ep a
rt
nersh
ipa n
dt h
eir part
n er
shi
pb ecomesin
sol
vent
.
l
iabi
l
it
yf orthed e
btsa n
do bl
igat
i
onis  L i
mitedPa r
tnership

Downloaded by Jean Del Ro (drjean008@gmail.com)

 lOMoARcPSD|9354840

o Oneo rcannotgoa ft
ert heper
sonal Wr
it
tenAgreement
as
set
so f
thel
imit
edp a
rt
ne r
.  Pa rt
ner
s h
ipa greemen tisac ont
rac
tb et
ween
o Hasatleasttwoc l
asseso fpar
tn
ers: part
ner
s,a ls
oc all
edt hea rt
icl
eso fc o-
Gener
alandl
imi
ted(Art
i
cle1816
,1843)
. part
ner
ship/
p a
rtn
ership.
o Atl
eas
tonegeneral
p a
rtn
e r  Itisgover
ne dbycontract
law.
 Ou tl
i
nesther ul
esofthepartn
ershi
p.
 Sp eci
fi
es:
o Na meo fpar
tners
hip
Ast
oPr
ope
rty o Pr i
n ci
palpl
aceo fbus
iness
 Uni
ver
salPart
nershi
pPr operty o Da t
eo fe ff
ec t
i
venessa ndlif
eo fthe
o Al lthep a r
tn
ersc ontr
i
butea l
lt he
ir partner
shi
p
pr
o p
ert
iesint
oac ommo nfund(Art
i
cl
e o Pu rposeof t
hep ar
tner
shi
p
1778oft
heNe wCi vi
lCo d
e). o Na me,add r
ess,capi
talcont
ri
but
i
on,and
 Uni
ver
salPart
nershi
pof Profit
s duti
eso feachpart
ners
o Pa rt
ner
sc o nt
ri
butea llwhatt h
ey wil
l o Na t
ureoftheb us
ines
s
re
ceiv
ea sa r e
s ul
to ft h
eirwo r
ko r o Ma nner o f ma nagement o f the
serv
ic
er ender
edd u
ringthelif
eti
meo f partner
shi
p
th
ep ar
tner
shi
p. o Pr oceduresforadmit
ti
ngan ewpart
ner
o Th ep a
rt
nersret
aino wnershi
po v
erthe
ir o Me t
h odo fs har
ingp r
ofi
tsa n
dl os
ses
pr
e s
entorf
u t
ur
ep ropert
y(Art
ic
le1780)
. amo ngthepa r
tner
s
o Pr ocedurea ndp e r
i
odicwithdr
awalof
Re
gis
trat
i
ona ndLa ws: assetsbythep ar
tner
s
 Se curi
t
iesandExchang
eCo mmis
sio
n(SEC) o Pr oceduresandma nnerofli
qui
dat
i
ngthe
 CivilCode-
Arti
cl
e1767–c o
ntr
actwher
ebytwoor partner
shi
pwi ththeri
ghtsandd u
ti
esof
morepersonbi
ndthemsel
ves. thep ar
tn
ers.
 Pa r
tners
h i
psa s we l
la s Corpor
at
ionsa r
e o Ar bit
rat
io
nd isput
es
gover
nedb yt he Ci
vilNe w Codeo ft h
e
Phi
li
ppin
e s
,Art
icl
es1767t
o1 8
67. L
imi
te
dL i
fe
 T axp r
ovi
si
onwi l
lbebasedonNa t
i
onalIn
ter
nal  Diss
olut
i
onisth
ee n
dingofap ar
tn
ershi
p(Ar
ti
cl
e
RevenueCo de 1
791to183
5).
 Volu
ntar
yorIn
volunt
aryDiss
o l
ut
io
n
Adv
ant
ages:  Diss
olut
i
oninc
ludes:
 Ea sei
nma na
ging o Ch angesintheexi
st
ingpar
tner
s
 Mo reeffic
ient o Wi t
hdra
wa lofapart
ner
 Minimal costandreq
uir
ementsth
anac o
rpor
ati
on o De at
ho fapartn
er
t
hatrequ i
resachar
terf
romthest
ate. o Ad di
ngan ewp art
ner–diss
olv
estheol
d
 Inf
us i
ono fknowle
dge,expe
ri
enceandski
ll
s par
tne
rshipbutcr
eatesanewone.
 Ca nrai
semo recapi
t
alt
hanso l
eprop
ri
et
orsh
ip
 Nod oub l
et axat
i
ona ndist axe
do nl
yt othe Mut
ual
Age ncy(unl
imitedli
abil
ity
)
pa
rtner
sa sin
div
idua
ls.  Eve rypar
tneri
samu tualagentoft
h efi
r
m.
 Eve rypar
tnercanbindthebusinesstoac ont
ra
ct
Di
sadv
ant
a ge s: wi
thi
nt hes copeo ft h
ep art
ner
s hi
p’
sr egul
ar
 Noi ndefi
nit
eli
fe(pro
neind i
ssol
ut
ionbe c a
useof bu
s i
nessoperat
ions
.
de
a th,wit
h dr
awal,an
dreti
rement
). o I fon eo wnerb orr
ows ,a l
lo west he
 Mu tu a
la g enc
ya ndu nl
i
mi t
edliabi
l
it
y( c
rea
te li
abi
li
tyif
notpersonalmatt
er.
pe
rs onalobli
gati
onforea
chp ar
tner
).  An yp a
rt
nercanb i
ndtheb us
inesstocontr
act.
 Ap p r
ovalfornewp ar
tne
rs  Pa r
tnerscannotb i
ndtheb usines
st oc ont
rac
ts
 Pa r
t ner
shipa gre
eme nt mayb ed iffic
ultto as
so ci
at
edwithperso
n almat
ters.
f
ormu l
ate.  Th ep ar
tner
shipcanb es ued,toget
herwiththe
 Re l
a ti
onsa mongp ar
tne
rsma ybefr
agil
e. pa
rtners
,bythir
dp a
rti
eswh enpa r
tner
sc ommita
 Diffic
ult
yint r
ansfe
rr
ingownershi
p wr
on gf
ulact
o rabreachoftr
ust(Art
icl
e1 8
1 8
).
o De l
ectusPe r
sonae–e achp artnerhas
therightt
oc hoos
ei ndi
vi
dualheo rshe Un
li
mit
edLi
abil
it
y
associ
a t
ewit
h.  Eachpart
nerhasunl
i
mite
dp er
sonall
iab
il
it
yfor
thedeb
tsoft
hebus
ine
ss.
Vol
unta
ryAssoci
ati
on  Part
ner
smu st
payt
hed eb
tsoft
hebu s
ine
sswit
h
 Ind
ivi
dual
s,byth
eirownfr
eewil
l
,ag
reet
ojo
in pers
onalas
set
swhenthepar
tne
rshi
pcannotpa
y
tog
ethe
ror f
or
map ar
tne
rsh
ip. it
sdebt
s.
 Pers
onalas
set
sofgen
eralpa
rt
ners
.

Downloaded by Jean Del Ro (drjean008@gmail.com)

 lOMoARcPSD|9354840

 Per
sona
la s
set
so fth
epart
nerss houl
db eu
sed  Cont
ri
but
i
onsint
hef
ormofmon
ey,pr
oper
ty
,o r
t
oh el
ps et
t
lethec omp
any’
so bl
iga
ti
onswhen ser
vi
ce.
pa
rt
ners
hipasset
sa r
enotsuffic
ien
ttoli
qui
dat
e  Pur
poseofth
ebusi
nes
sistodi
vi
detheprofi
t
pa
rt
ners
hipli
abi
l
it
i
e s(
Art
i
cl
e18 3 0
-1831)
. amongt
hem.

Co
-owne
rshi
po fPropert
y Howarepart
nershipsorgani
zed?
 Partn
ershi
pp r
opert
i
es  I ti
seasytoformapa r
tner
shi
p.
 Anya ssetc ont
ri
but
edb yap ar
tne
rb eco
me s  No p e r
missi
ons a re r e
q ui
r
ed f r
om t he
p
roper
tyofthepar
tner
shi
p. gover
nme ntandnoo u
tsi
delegala
ssi
sta
nce.
 Partn
erwh ocont
ri
bute
dthep r
oper
tyisnol
onger  Th ough,i
ti swis
etoe nli
stt
hea ssi
st
anceofan
t
hesol
eo wneroft
heproper
ty. att
or
neytod ra
wu pthepart
nersh
ipagr
eement.
 Anyn ewassetspur
chase
db yth
ep ar
tne
rsh
ipare  Th epartnerscont
ri
but
ea sse
tsanda bi
l
it
i
es/s
kil
l
s
o
wn e
db yeachother
. tot
hep ar
tnershi
p.
 Partn
ersh avec l
ai
mo na l
lp ar
tn
e r
shi
pa ss
ets Pa
rtne
rshi
pCo ntract
b
asedo nt hei
rcapi
talaccoun
tsa n
ds har
ei n  Ag ree
me ntc on
cer
n i
ngf ormati
on,o per
at
ion,
p
art
nershi
pe ar
ni
ngs. dis
sol
uti
on,a ndli
quid
ati
ono fth
ep ar
tner
shi
pis
embodi
e dinac on
tractcal
l
e dArti
cl
esofCo -
Co
-owne
rshi
pofProfit
s Part
nership.
 Right
tosh
areinp a
rt
ner
shi
ppr
ofi
t
s .
Ar
ti
cle1771oftheNe wCivi
lCode -c on
tr
ibu
tio
nso f
T
axabl
eEnti
ty pa
rt
nersinc a
shp r
oper
ti
ess h
ou l
db einap ub
li
c
 T a
xabl
elik
ec o
rpor
at
ions(30%rat
eforOrdin
ary i
nst
ru
men tdul
yr egi
ste
red wi
tht he Secu
ri
ti
esa nd
Par
tn
ershi
p)e x
ceptforGe ner
alPr o
fes
sion
al Ex
changeCommiss
ions(
SEC)if
itamount3
,000ormore
.
Par
tn
ershi
ps,
exempt
e df
romtax
.
 Ge ner
alPr
ofe
ssio
nalPart
ner
shi
pisf
ormedsolel
y Ar
ti
cl
e1 66
7–wi t
hre g
ardawri
t
tenorora
lcont
r
actth
e
f
orexer
ci
si
ngthei
rcommo npro
fess
ion(Nat
ion
al l
awdoesnotprov
ideama nd
ato
ryrequ
ir
ementf
orthi
s,
I
nt
ernal
RevenueCode,Sect
i
ons20and2 4
). no
tunl
essth
einves
tmentoft
hepar
tn
erisint
hefor
mo f
i
mmovab
leprop
ert
y,inwhi
chcas
eap ubl
i
cins
tr
umentis
No Par
tner
shipIncome Tax(Ge neralProf
essional ne
ces
sar
y.
Pa
rtne
rshi
p)
 Th ep art
ner
shi
pe n
ti
tyd o
esn o
tp a
yb u s
ines
s Art
icl
e1 772–e ver
yc on
tr
a c
tofpart
ner
shi
ph avi
nga
inc
omet a
x. ca
pit
alo f3,
000o rmore,inmoneyo rpro
pe r
ty
,shal
l
 Th enet i
nco
me(ornetl
oss)fl
owsthr
o u
ghtothe ap
p e
ari nap ubl
ici
nst
rumentwhi
chmustberecor
dedin
ind
ivi
dualp
art
ner
s. t
heo ffic
eo ftheSe c
uri
ti
es& ExchangeCo mmiss
ion
.
 Pa rt
nerspayper
sona
l i
nco
met axont he
irshar
e Howeve r
,fai
l
uretodosodoesnotne
gateth
ere c
ogni
ti
on
ofpar
tner
shi
pinc
ome. of
thep artn
ers
hipasajur
id
ical
per
sonal
i
ty.

Pa
rtne
rshi
pIncomeT a
x(Ordi
naryPa
rtne
rshi
p) Art
ic
le1 7
91 –inthee v
entpart
ner
shi
pas
set
sa r
e
 T axa
bleli
keacorp
orat
i
on i
nadequ
atetos e
tt
letheclai
ms ofthepa
rt
ner
shi
p
 T axoninc
o me=30%rate cr
edi
tor
s,thes
ec re
dit
or
sc ans ei
zetheper
sonal
pr
oper
ti
esofa
nyon
eofth
epart
ner
s.
Pa
rtne
rs’
Ca pi
talAc
count
 Ac count
in
gf ora p ar
tn
e r
shi
pi s muchlik
e St
art
-upofPart
nershi
p
acc
ou n
ti
ngforasol
ep r
opri
et
ors
hip.  Pa rt
ners ma yc ont
rib
uteb otha sse
tsa nd
 Be causeapart
ners
hiphasmo r
ethanoneown
er, li
abi
li
t
ies
.
eac
hp art
nern
e ed
sas epar
atecapi
t
alac
c o
unt
.  De b
ita
sset
sa ndcre
ditl
i
abil
i
ti
es.
 Ea chpart
nerhasawith
drawalac
count
.  As set
sminu sl
iabi
l
it
iesme a
sure
se ac
hp ar
tne
r’
s
capi
tal
cont
ribu
ti
on.
Le
ga l
Enti
ty  Th e p ar
tner
shi
p r ec
ords t he p ar
tne
rs’
 Ha sl
egalpe
rson
ali
t
y cont
ri
but
ionsatcur
rentmarke
tval
uebecaus
ethe
 Juri
dic
alpers
onal
it
ysepar
at
ea nddis
ti
nctf
rom part
ner
shi
pi sr
e c
eiv
ingtheasse
tsandassumi
ng
p
artn
ers(
Art
icl
e1768)
. thel
iab
il
it
i
esa tt
hei
rcurr
entmarke
tval
ues.
 Itcana c
qui
re,sel
lordi
spo
sep r
oper
ti
es,i
ncu
r
o
bli
gat
ion
sandtra
nsact
busi
nes
sini
tsname.

El
eme
ntsofaPart
ners
hip
 Vali
dcont
ra
ct,
oral
orwr
i
tt
en.
 Pu tupb ypers
onshavi
ngle
galc
apa
cit
yto
c
ontr
act
.

Downloaded by Jean Del Ro (drjean008@gmail.com)

 lOMoARcPSD|9354840

Delgado Mundo o Un iversalPa rt

nership ofProperty–
Cash 15,000 2,000 cont
ri
b ut
ea llproper
ti
esintoac ommo n
Merchandise Inv. 40,000 f
u nd( Art
icl
e1 778o ft h
e Ne w Civil
Accounts Payable (80,000) Code).
Computer Equipment 80,000
o Un iversalPa r
tner
ship ofPr ofit
s–
Accum. Depreciation (20,000)
cont
ri
b ut
ea l
l whatthe
ywi l
lrec
eiv
ea sa
Current Market Value of computers 55,000
Office Furniture 20,000
r
e su
lto ft
h ei
rwo r
ko rse r
vi
cerendered
Accum. Depreciation (1,500) duri
ngt hel if
et
ime o fthep ar
tners
hip
Current Market Value of furnitures 18,000 (Ar
ti
cle1 7
8 0)
.
De
lgad
o=30
,000–60%  Obj
ect
Mund
o=20
,000–40
% o Un li
mi t
e dPa rt
nershipo fAllPresent
Property–Ar tic
le1 778oft heCi vil
Cash 1
5,0
00 Code,c ontri
but
iono fproper
tybecome
Merc
handi
seIn
. 4
0,0
00 shar
ed .
Comput
erEqui
pment 55,0
00 o Un iversalPa r
tner
ship ofPr ofit
s–
Acco
untsPay
abl
e 80
,00
0 Arti
cle1 780 of t h e Civi
l Co de ,
Del
gado,Cap
it
al 30
,00
0 part
nershi
po nl
ya c
quir
estou seprofi
t
s ,
Tor
ecor
dDe l
gado’
sco
ntr
i
but
ion
s. proper
tywi l
lbep er
sonalasset
san dno t
part
nershi
pa ssets
.
Cas h 2,
000 o Pa rt
icularPa rt
nershi
p–Ar ti
cl
e1 783 ,
Offic
eF u
rnit
ure 18,
000 cont
ri
b ut
ioninthefor
mo find
ustr
y.
Mu n
do ,
Ca p
ita
l 20,000
Tor ec
ordMu ndo’
scont
ribu
ti
ons. Ki
ndsof
Pa rt
ners
Par t
nershi
pF i
nancialSta
tements  Investment
 Th ea s
s e
tandl i
abi
l
it
yse cti
onsf
o rapart
ner
shi
p o Ca pit
a l
ist–mo neyorproper
ty.
bal
ances hee
td onotdiff
erfr
omt hoseforo
ther o Indus tri
a l– i ndust
ry,labor
,s ki
l
l,o r
f
o r
mso fbus
iness. ser
vice.
 Ap art
n er
shi
pe quit
ys tate
me ntisc al
l
edthe o Ca pit
a l
-Indus tr
ial–c ont
ri
bu t
emo ney,
sta
temento fp art
ner
s’e qu
it
y.I tshows t
he pr
ope rt
y, andindust
ry.
changesineachp ar
tner’
sc api
t
ala c
countf
ora  Liabil
it
y
speci
fi
cperi
odo f
ti
me . o Ge ne ralPa r
tner–liabi
l
it
ytothi
rdper
s o
n
 Th ee q
u i
t
ysecti
onofap art
nersh
ipbalan
cesheet ext
end stop ri
vateprop
ert
y.
r
e por
tsa s epar
atec api
talb al
ancefore ac
h o L i
mite dPa r
tner–liab
il
it
ytothi
rdper
s o
n
part
ner
. i
slimitedo nl
yt otheexte
ndso fcapit
al
Delgado and Mundo cont
ri
b uti
o ntopartn
ershi
p.
Statement of Financial Position
 Partic
ipat
ion
June 1, 2020
In Philippine Peso o Nomi nal –na meo nl
y
o Os tens i
ble Pa rtner– k nown tot h
e
Assets Liabilities publ
ictha theisap art
ner
.
Cash 17,000 Accounts Payable 80,000
Merchandise Inv. 40,000
o Se cret– a ct
iveb utunknown tot h
e
Computer Equipment 55,000 Partner's Equity publ
ic
Office Furniture 18,000 Delgado, Capital 30,000 o Si l
ent–n otacti
veinpart
ic
ipat
ion
Mundo, Capital 20,000 o Ma na ging–ma nag
esacti
vel
y
Total Partners' Equity 50,000
Total Liabilities &
o Un iversa l Pa r
tner – p art
ic
ipa
tio
n
Total Assets 130,000 Partners' Equity 130,000 ext
end stoe nti
rebusi
ness
No
te:
Del
gad
oan
dMu
ndo
’sc
api
t
ala
rel
i
st
eds
epa
rat
el
y. o Pa rt
icula rPartner
o Pa rt
i
c i
pa t
ionislimit
edtoau ni
torpartof
Ki
ndsof
Pa rt
ners
hip: abusine ss
 Ac t
ivi
ty o Re al–a na ct
ualpart
ner
o T r
ading–ma inact
ivi
t
yismanufa
ctur
eor
mercha
n d
isi
ng. Ri
ght
sofaPa r
tner:
o Non- Tr
ading–e nga
geinser
vic
es.  Ha sari
ghtoversp
eci
fi
cp a
rt
n e
rshippr
oper
ty.
 Liabil
it
y  Ha sarightt
os ha
reinthep r
ofi
t
sr es
ult
i
ngfrom
o Ge neralPart
nershi
p–a l
lpar
tner
sare b
usine
sso per
at
ion
s.
gener
alp ar
tner
s,e xt
ends b e
yond  Ha sari
g h
t t
oshar
eintheremai
ningasset
supon
co
ntri
but
ionandperson
alasse
ts. p
artn
ershi
pl iq
uid
ati
ona ft
e rth ep ar
tne
rshi
p
o L i
mited Partner
ship –a tleas
to ne c
redi
tor
sha v
ebeenpai
d .
gener
alpart
ner.  Ha sari
ghttoco-
managethepart
n er
shi
p.

Downloaded by Jean Del Ro (drjean008@gmail.com)

 lOMoARcPSD|9354840

 Hasari
ghtt
oaskthatt
heb
ook
sb eke
ptint
he
pr
i
nci
palpl
aceofbu
sine
sss
ubj
ectt
oins
pect
i
on Pa
rt
ner
’
sEq ui
t
y:
at
area
s o
nabl
eti
me. Abad
,Capi
t
al4
50,
000
Bas
a,Capi
t
al2
75,
000
Bu
sine
ssEnti
tyConcept Tot
al 7
25,
000
 Bu s
ine
ssu ni
ts uch asp ar
tne
rshi
p,s ol
e
pr
opr
ie
tor
shi
po racor
por
ati
onsh
oul
db etr
eat
ed No
te: The
s eb al
a nc
ess houl
db er efl
ect
edi nt h e
asdi
st
i
nctandsepa
rat
efr
omtheowner
,par
tn
ers
, Ar
ti
cleso fCo -
Part
ner
shi
pa stheirp er
ma nent
ors
har
ehol
ders
. i
nt
erest.
Par
tnersusual
lymakeinv
est
me n
tso nl
yo nceo r
Pr
opr
ie
taryTheory t
wiceovertheli
f
eti
meofth
epart
ne r
ship.
 Indiv
idu
a l
part
ner
sasownersoft
hen et
asset
sof I
faddit
ionali
nvest
menti
sma d
ewh i
chwillaff
ect
t
heb us
inessesp
eci
al
lywhens al
ar
iesaregi
ven t
heo therprovi
si
onofthepart
nershipcontr
ac t
,
t
ot hem,o rwh eno b
li
gati
ontop ar
tne
rsh
ip su
cha stheagreement
onpro
fi
tdi
s t
rib
uti
on,t
h ere
cr
edi
tor
se xt
endtothei
rperso
nalproper
ti
esor sh
ou l
dh aveb eenap r
ovi
si
ont ot hise ff
ect
whentheo r
ig
ina
lpart
ner
shipisdis
sol
ved,and ot
herwisetherewil
lb ean eedt or e
viseth e
t
hec onsentofthep ar
tn
ersa r
er equi
redin Ar
ti
clesofCo-Par
tner
shi
p.
admi
tt
inganewpart
ner
.
o Pa
rtne
r’
s Dra
wing – u
sedtor
efl
ect
Pa
rtne
r’
sEquit
y t
empor
aryi
nt
er
esto
fapart
ner
.
 Rightsofthep ar
tneroverth
en etasse
tsoft
he
bus
ines
s Sha
reinthene tprofit
 Re pr
esent
edb ytwoa cc
ounts
:  Theagreeme ntastothemannerofdi
st
ri
but
ionis
o Pa rt
ne r
’sCa pi
tal–r e
presen
tsori
gi
nal pro
videdint h e Art
icl
eso fCo-Pa
rt
nershi
pi s
i
nvestmentwhic
hb ec
ome si
tsper
manent cre
dit
edtot hed rawin
ga cc
ounttoi
ncrea
set h
e
orfi
xedint
erest
.T h
iscoul
dc h
angeonl
y part
ner’
seq ui
tya ndbeco
mesas our
ceofregul
ar
i
fa ddit
i
onalinvest
mentsa r
ema deo r dra
wingsbyt hep ar
tne
r.
whenn on-
curr
entasse
tsarere
val
ued.  Sharei n netl oss–d eb
it
edtot hedrawin
g
accou
n tt
od ecreasethepart
ner
’sequi
tyaswe l
l
In
vestment asd ecre
as et hea mountthata part
nerc a
n
 Co ntr
i
buti
onmadearecr
edi
tedt
oe a
chpar
tn
er’
s wit
hdr
a w.
capi
ta
laccou
ntt
oinc
rea
sethepar
tne
r’
seq
uit
y
I
ni
ti
a l
Inv
estmento
f300,
000f
romeachpar
tne
r. Per
s onalDrawings
Cash 600,
000  F ormala sp r
ovi
dedi nt he Art
ic
leso fCo-
Abad,Capi
tal 30
0,000 Partner
shi
p.
Basa,Capi
tal 30
0,000  Th e s
ea r
eo f
te
n t
i
me scal
ledsala
ri
esb utar
ein
I
ni
ti
a l
cashinv
est
me n
tso
fAbadandBasa. f
a ctwit
hdr
a wal
so fpr
ofi
tanda r
ed ebi
t
edtothe
drawin
ga ccountt
odecreas
ethepart
ner’
sequi
ty
.
Ab
a dmadea n
otherc
ashinv
est
mento
f150
,00
0.  In f
ormalori r
regul
armaya l
sob ema debythe
Ca
s h 15
0,00 partn
erswh enthen eeda r
i
s e
s(ma dewit
hthe
Abad,Capi
tal 15
0,00
0 consentofa l
lpart
ners
)a n
da real
sod ebi
t
edto
Ad
d i
ti
ona
l i
nve
stmentof
Abad. t
h ed r
awingaccountandviewedasd ec
reas
ein
t
h eovera
llequi
tyori
nter
estoft
hepart
ner.
Per
manentWi
thdrawal
 De b
ittoe ac
hp ar
tn
er’
sc a
pit
ala
cco
untt
o No
te: Bal
anceofthedrawin
ga cc
ounti
sc l
o se
dtot h
e
d
ecre
aset
hepartn
er’
sequi
t
y. ca
pit
alacc
ount.
I
fth
es ha
reofthepart
neri
ntheprofi
t(c
redi
tedt
o
Ba
samadeaperma
nentc
ashwi
th
drawa
lof
25,
000
. hi
sdrawi
nga ccount
)isgreat
erthanthea ct
ual
Ba
sa,Cap
it
al 25,
000 wi
thd
rawal
sma deb yhi
m( d
ebit
edtoh i
sd r
awin
g
Ca
sh 25,0
00 ac
count
),thec redi
tb al
anceo fth ed r
awin
g
Pe
rmane
ntcas
hwit
hdr
awalo
fBas
a. ac
counti
sa dde
dt othecapi
t
alaccounttoarr
iv
e
at
thetot
alpa
rtn
e r
’
se qui
t
y.
Att
heyearen
d,t
hecap
it
ala
cco
unt
swi
l
lap
pea
rint
he
gen
era
lle
dge
rasf
ol
lo
ws: At
theendofeac
hmo nt
h,Abadwi
thdr
ew10,
000c
a s
has
mont
hl
ysalar
yst
art
i
ngOc t
oberwhi
l
eBa s
amadeacash
Ab
ad,Capi
t
alNo.30
1 Basa
,Capi
t
al No.30
2 wi
t
h d
rawalo
nlyo
ncefor1
0 ,
000att
heendof
December
.
300
,00
0 25
,000 300
,00
0 Ab
a d
,Drawi
ng 10,
000
150
,00
0 Bal
ance 275
,00
0 Cash 1
0,0
00
Ba
lanc
e 450
,00
0 Sa
lar
yd r
awi
ngofAbadf
orOc t
obe
r.

Downloaded by Jean Del Ro (drjean008@gmail.com)

 lOMoARcPSD|9354840

1
0,0
00 6
5,0
00___
___
_____
__
Ab
a d
,Drawi
ng 10
,00
0 1
0,0
00 7
5,0
000 75
,00
0
Cash 10,
000 4
5,0
00__
___
_____
___
_
Sa
lar
yofdra
win
gof
Aba
dforNov
ember
. 7
5,0
00 7
5,0
00

Ab
a d
,Drawin
g 1
0,000 No
te: Part
ner’
sc api
tala cc
ount
,a ppear
in
gi nthe
Ba
sa,Drawi
ng 1
0,000 fi
nanci
alposi
t
ionasPa r
tne
r’
sEq ui
t
ywillsho
wa
Cash 20,
000 cr
e di
tof49
5,000f
orAbada n
dac r
edit
ba l
anc
eo f
Sa
lar
yofd r
awi
ngo
fAb
ada n
dBa s
aforDe
cemb
er. 340,00
0forBasa.
No t
ethatwhet
h e
ro rnotth
ed ra
wingb al
anc
es
Anetpro
fi
tof150,
000wasre
p o
rt
edatt
heen
dof
they
ear ar
ec los
ed,thep a
rt
n e
rs’equi
t
ywillr
ema i
nthe
whi
chwasd i
vi
dedequal
l
ybetweent
hem. same.
I
nc.&Exp.Summa r
y:1 50,
000
Ab
ad, Dr
awing 75,
000 St
at
eme
ntofChangesinPartners’
Equity
Ba
sa, Dr
awin
g 75,
000  Par
tner
sshoul
db ei
nformedo ft
hec h
angest
hat
Pr
ofi
tshar
eofthepar
tn
ers. br
oughtaboutt
h efi
na lbal
ancesrequi
ri
ngth
e
acc
ount
anttoprepa
res t
at
eme n
to fcha
ngesi
n
Att
heyea
re n
d,t
hedrawi
ngacc
ount
soft
hep
art
ner
swi
l
l par
tne
rs’e
qui
ty.
ap
pear
inthegen
era
lle
d g
era
sfol
lo
ws:
Ab
ada n
dBasaPa
rtn
ers
hip
A,Dr
awing No.30
1-A B,Dr
awi
ng No.3
02- St
ate
me n
tofChan
gesi
nPart
ner
s’Eq
uit
y
A F
orth
eY ea
rende
dDecember3
1,201
9
10
,000 75,
000 10
,000 7
5,0
00_
10
,000 Bal
ance 6
5,0
00 Aba
d Bas
a Tot
al
10
,000
_____
___
_____
__ Capi
t
al,Jan
.13 0
0,00
0 30
0,00
0 600
,00
0
Bal
ance 45,
000 Add.
Invest
. 1 5
0,00
0 150
,00
0
Per
m.Wi t
hd. _ _
_____ (
25,
000
) (
25,
000)
Pa
rt
ner
s’Eq
uit
y: To
tal 45
0,00
0 2
75,
000 725
,00
0
Aba
d,Capi
ta
l450,
000 Shar
einNI 7 5
,000 7
5,0
00 150
,00
0
Aba
d,Dra
wing4
5,0
00 49
5,0
00 Per
sonalDr
. ( 30,
000) (
10,
000
) (
40,
000)
Capi
t
al,Dec.3
14 9
5,00
0 3
40,
000 835
,00
0
Ba
sa,
Capi
ta
l275,
000
Ba
sa,
Dra
wing6
5,0
00 34
0,0
00 Ot
herTrans
acti
onsAffe
cti
ngPar
tner
’sCapi
t
al
Par
tn
ers
hipnot
espaya
b l
etot
hebankf
eel
dueandwa
s
No
te: Thebal
ancesi
nt hedra
wingacc
ount
srepr
esent
s pa
idbyAbdoutofh
isper
sonal
cas
h.
un
withd
rawnprofi
t
s . Not
esPayab
le 5,
000
Thesebal
ance
sc o u
ldbele
ft
5openandb r
ough
t Abad
,Capit
al 5,
000
f
orwardn e
xta ccount
i
ngp eri
ode sp
ecia
ll
yif
pa
rtner
si nt
endt o wi
thdr
aw them asp er Pe
rsona
lre
cei
vabl
eofBas
awascoll
ect
edan
dre
tai
ned
ag
reement. t
hepart
ner
shi
p.
Thesebal
ancesc oul
db ecl
osedtothecapi
ta
l Cash 6,
000
ac
c o
unta nd ma dep ar
to fthe
irpermanen
t Basa
,Capi
ta
l 6
,000
i
nvest
ments
. Pe
rsona
lnot
eofBasapa
yabl
etoFi
li
nve
stwa
spai
doutof
t
hepart
ner
shi
pcas
h.
Cl
osi
ngtheDr
awin
gba
lanc
etoCapi
t
alacc
oun
t: Ba
sa,Capi
ta
l 3,
500
Ab
a d
,Drawi
ng 4
5,00
0 Cash 3
,500
Ba
sa,Drawi
ng 6
5,00
0
Abad
,Capi
tal 4
5,000 Pa
rtn
ershi
prec
eiv
abl
ewa sc
oll
ect
edandr
et
ai
nedb
y
Basa
,Capi
ta
l 6
5,000 Ab
a d
.
Ab
a d
,Capi
tal 2,
000
Th
eg e
ner
all
edg
erwi
ll
app
ear
asfol
l
ows: Acco
untsRece
iva
ble 2,00
0
Abad,
Capi
tlNo.
a 301 Basa
,Capit
al No.
302
300
,00
0 25
,000 300
,000 Pa
rtner
shipFormati
on:
150
,00
0 __
______
_____
_ 6
5,00
0  2ormor eIndiv
idual
sforFi
rs
tTi
me
45,
000 340
,000 o Ca pi
talPar
tne
r
495
,00
0 CashIn
vestment
Ca
s h xx
A,Dr
awi
ng No.3
01-A B,Dr
awi
ng No.3
02- Par
tner
A, Capi
t
a l x
x
A Par
tner
B, Capi
t
a l x
x
10
,00
0 75
,000 1
0,0
00 7
5,0
00

Downloaded by Jean Del Ro (drjean008@gmail.com)

 lOMoARcPSD|9354840

2.I nv
ent
or
yiso
ver
st
at
edby1
0%
Non-
CashAsse
tInv
est
ment Da
nny,Capi
t
al 4,
500
Non-
CashAs
set
s xx I
nve
n t
or
y 4,
500
Par
tn
erA,Ca
pit
al x
x
Par
tn
erB,Ca
pit
al x
x Comput
ati
on:(
49,5
00/
1.
1)
*0.
1
I
nven
tor
y=49,50
0
Non-
CashAssetofAss
umpt
i
onofL
iabi
l
it
ie
s Over
st
at
e=1 0%
Non-
CashAss
ets xx
Li
abi
l
it
ie
sassu
me d x
x 3
.Eq ui
pment
isd
eprec
iat
edb
y30%
Par
tn
erA,Capi
ta
l x
x Ac
c.Depr
eci
at
io
n 1
0,000
Par
tn
erB,Capi
ta
l x
x Dann
y,Ca
pit
al 10
,00
0

No
te: Non-
CashAssetmus
t beinfai
rmar
ketva
lue
. Computat
ion:(
100,0
00 *
0.
3)–40
,00
0
Li
abi
l
it
ie
sassumedma yb emort
gag
eforbui
l
din
g. Equ
ipment=100,0
00
Capi
t
alatneta
mo u
nt,diff
ere
ncebet
weenasset
s Acc
umu l
at
edDe pr
eci
ati
on=30%
an
dli
abil
i
ti
es. Act
ualAc
c.De p
reci
at
ion=40,
000

CompoundedEntr
y: 4.1 ,
500in
ter
est
onNot
esPaya
bleh
asa
ccr
ued
Cash x
x Da
nny,
Capit
al 1
,50
0
Non-
CashAsset
s x
x I
nt
er
estPay
able 1
,500
Li
abi
l
it
iesAss
umed x
x
Par
tne
rA, Ca
pit
al x
x Bal
ancesaf
terRevaluat
ion:
Par
tne
rB, Ca
pit
al x
x Cas
h 32,
000
Ac
count
sRe cei
vabl
e 5 0,
000
o I
ndust
ri
alPar
tner Al
l
owanceforBadDeb t
s 5,0
00
 Makeame moentr
y,noneedto Not
esRecei
vable 20,
000
havejou
rnalent
ry
,ma ke at- I
nve
n t
or
y 45,
000
acco
untwit
hame moi nd
ica
ti
ng Eq
uipment 100,
000
th
isp er
soni sa dmit
teda s Ac
cumulat
edDe pr
eci
ati
on 30,
000
in
dust
ri
alp ar
tner wit
h t hi
s Ac
count
sPay ab
le 45,
000
amounto
fshar
einpro
fi
ts Not
esPayabl
e 20,
000
I
nt
erest
Payabl
e 1,5
00
 Conv
ersi
on of Sole Propriet
orshi
p–1 Dan
ny,Capi
tal 145,
500
Pr
opri
et
orshi
pand1ormor eIndi
vidual
s
 Conv
ersi
onofSolePr
opri
etorshi
p–2ormor e o ClosingtheBooks–SPr
opr
ie
tor
shi
p
Pr
opri
et
orshi
ps Al
l
owanceforBD 5,
000
o Re val
uat
ionofAsse t
s+L i
abi
li
ti
esof Ac
c.Depre
c i
at
ion 30,
000
theSol
ePropr
iet
orshi
p Ac
count
sPa yabl
e 45,
000
Not
esPayable 20,
000
Cas
h 32
,00
0 I
nt
eres
tPayable 1,
500
Ac
count
sRe c
eiv
abl
e 5 0
,00
0 Dann
y,Capit
al 145,
500
Not
esRecei
vabl
e 20
,00
0 Cash 32,0
00
I
nve
ntor
y 49
,50
0 Acc
ountsRecei
vable 50,0
00
Eq
uipment 10
0,0
00 Not
esRe cei
vabl
e 20,0
00
Ac
cumula
tedDepre
cia
ti
on 4
0,0
00 I
nvent
ory 45,0
00
Ac
count
sPayabl
e 4
5,0
00 Equi
pment 100,
000
Not
esPayabl
e 2
0,0
00
Dan
ny,Capi
ta
l 1
46,
500
o Ope ni
ngt
hePar
tner
shipBo
oks
Re
v a
luat
ion: Cash 32
,00
0
1
.1 0 %ofAcc
o u
ntsRece
iva
blet
obeu
nco
ll
ect
ed Ac
countsRecei
vabl
e 5 0
,00
0
Da
n n
y,Capit
al 5,0
00 Not
esRe cei
vab
le 20
,00
0
Al
lowa
n cef
orBadDebts 5 ,
000 I
nvent
ory 45
,00
0
Eq
u i
pme n
t 70
,00
0
Computat
ion:50,
000*
0.
1 Al
lowancefo
rBadDebt
s 5 ,000
Acc
ountsRecei
vabl
e=50,
000 Account
sPayabl
e 4
5 ,
000
Uncol
l
ecti
bl
e=1 0% Not
e sPayab
le 2
0 ,
000
Al
lo
wanceforBadDebt=5,
000 I
nter
e s
tPayabl
e 1
,500
Danny,Capi
ta
l 1
4 5
,50
0

Downloaded by Jean Del Ro (drjean008@gmail.com)

 lOMoARcPSD|9354840

No
te: Any PPE isr ecordeda tc ar
ryi
ngv alue
,
Acc
umulat
ed Depr
ec i
at
io
ni sn o
tr e
corde
da t
op
enin
gthebooks
.
Acc
ount
sRe c
eiv
ableisrec
orde
da tb
alan
cea f
t
er
r
eval
uat
io
na s AllowanceforBa d Debt
si s
r
ecor
dedatopen
ingthepart
ner
shi
pbooks.

Ca
sh 1
20,
000
Mi
cha
el,
Cap
it
al 120
,00
0

Downloaded by Jean Del Ro (drjean008@gmail.com)