E-11

The non-cash contribution by partner's shall be recognized based on the following priority:
1. Partners agreement
2. FV of non-cash asset contributed
3. BV of non-cash assets contributed

A - agreed valuation 40,000

E -12
B - FV at the time of contribution
w/o: Allow. For DA
AR
E-13
Gross receivable 25,000 Provision: DA exp
less: worthless accounts -1,250 Allow
Amount debited to AR 23,750

E - 14
Bel Joy Franco Total
Cash 50,000 80,000 25,000 155,000 Cash 155,000
Non-cash assets 25,000 60,000 85,000 O. Equipt 60,000
Initial capital balances 75,000 80,000 85,000 Bel, cap. 75,000
Joy, cap. 80,000
Franco, ca 85,000
E - 15
Alma Bona Cora
Cash contribution 100,000 10,000 100,000

E - 16
Al Ben Cip
Cash 50,000 Cash 50,000
Non-cash asset 80,000 55,000 Property 80,000
Mortgaged -35,000 Equipt 55,000
Initial capital 50,000 45,000 55,000 Mort. Pay 35,000
Al, capital 50,000
Each partner values his contribution at its FV, reduced by the amount of an Ben cap 45,000
liability assumed by the partnership. Cip, cap 55,000

E - 17 P&L
Contribution by Clara: Carla 2 2/5 40,000
Merchandise - FV 25,000 Clara 3 3/5 60,000
Delivery truck - FV 50,000 Total 5 100,000
Mortgaged payable assumed -15,000
Clara's contribution 60,000
Divide by the profit share of Clara / 3/5
Total agreed capital 100,000
Multiply by Carla's profit ratio x 2/5
Carla's cash contribution 40,000

E - 18
Chona's initial capital 60,000
Divide by Chona's capital share / 3/4
Total agreed capital of the partners 80,000
Muultiply by - Chona's cpital share x 1/4
Charo's cash contribution 20,000
Charo 1/4 20,000
Chona 3/4 60,000
Total 100% 80,000

E - 19
Pirante Wilson
Cash 40,000 60,000 Cash 100,000
Inventory 30,000 Inventory 30,000
Building 80,000 Building 80,000
Furniture & Equipment 30,000 Fur & Equi 30,000
Less mortgage assumed -20,000 Mort. Pay 20,000
Net assets contributed 70,000 150,000 P, cap 70,000
W. cap 150,000

E - 20
Alma (cash) 100,000
Bona (cash) 10,000
Cora (equipment) 100,000
Total assets 210,000
Less liabilities assumed -10,000
Net assets contributed by partners 200,000
E 1-10
1T
2T
3F
4F
5F
6F
7T
8T
9T
10 F
Books of T:
Trial balance before adjustment: Adjustments Adjusted Trial Bal.
Dr. Cr. Dr. Cr. Dr.
Cash 4,000 4,000
AR 160,000 160,000
Allow for impairment 16,000 32,000
Merchandise Invty. 200,000 200,000
Equipment 50,000 50,000
Accu. Deprn. 10,000 10,000
AP 36,000
T. Capital 352,000 42,000
414,000 414000 42000 42000 414000
A.J.E.
T. Capital 32,000 Closed the books of T.
Allow. For imp. 32,000 Allow for Impairment 48,000
(160,000 x 30% = 48,000 - 16,000 = 32,000) Accu. Depreciation 20,000
Accounts Payable 36,000
T. Capital 10,000 T. Capital 310,000
Accu. Depr. 10,000 Cash 4,000
Accounts Receivable 160,000
Merchandise Invty. 200,000
Equipment 50,000

New books of Partnership:

Cash 4,000
Accounts Receivable 160,000
Merchandise Invty 200,000
Equipment 30,000 Trial balance after formation of partnership:
Allow. For Imp. 48,000 Dr. Cr.
Accounts Pay. 36,000 Cash 469,000
T. Capital 310,000 AR 160,000
to record the contribution of T. Allow for impairment 48,000
Merchandise Invty. 200,000
Cash 465,000 Equipment 30,000
Y. Capital 465,000 AP 36,000
to record the contribution of Y T. Capital 310,000
T. Capital 40% 310,000 Y. capital 465,000
Y. Capital 60% 465,000 (775,000 x 60%) 859,000 859000
Total 100% 775,000 (310,000 / 40%)
 Books of T:
Adjusted Trial Bal. 1. adjust based on agreement
Cr. 2. closing entries

48,000

20,000
36,000
310,000
414000

Books of T. will be used by the partnership:

1. adjust the books of T
2. record the contribution of the other partner

#1 A.J.E.
T. Capital 32,000
Allow. For imp. 32,000
(160,000 x 30% = 48,000 - 16,000 = 32,000)

T. Capital 10,000
Accu. Depr. 10,000

#2 Cash 465,000
Y. Capital 465,000
to record the contribution of Y
T. Capital 40% 310,000
(4,000+465,000) Y. Capital 60% 465,000 (775,000 x 60%)
Total 100% 775,000 (310,000 / 40%)