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  • Batch 1 - Lecture 1 - Partnership Formation - Part 3

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    VILLANUEVA Monica Therese
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    This document contains information about the capital balances and adjustments for three partnerships - Roces Records, Sales Records, and Basco. For Roces Records, the unadjusted capital balance was $161,600 but after increasing accounts receivable and merchandise inventory and decreasing fixtures, the adjusted capital balance is $224,000. For Sales Records, the unadjusted capital balance was $195,200 but after decreasing fixtures and increasing goodwill, the adjusted capital balance is also $224,000. For Basco, the unadjusted capital balance was $35,200 but after decreasing accounts receivable and fixtures, the adjusted capital balance is $31,500. Basco's capital ratio is 40% of the

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    Part 3/3 - 1st Year 2nd Semester FAR 2

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    This document contains information about the capital balances and adjustments for three partnerships - Roces Records, Sales Records, and Basco. For Roces Records, the unadjusted capital balance was $161,600 but after increasing accounts receivable and merchandise inventory and decreasing fixtures, the adjusted capital balance is $224,000. For Sales Records, the unadjusted capital balance was $195,200 but after decreasing fixtures and increasing goodwill, the adjusted capital balance is also $224,000. For Basco, the unadjusted capital balance was $35,200 but after decreasing accounts receivable and fixtures, the adjusted capital balance is $31,500. Basco's capital ratio is 40% of the

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    © All Rights Reserved
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    11 views4 pages

    Batch 1 - Lecture 1 - Partnership Formation - Part 3

    Uploaded by

    VILLANUEVA Monica Therese
    This document contains information about the capital balances and adjustments for three partnerships - Roces Records, Sales Records, and Basco. For Roces Records, the unadjusted capital balance was $161,600 but after increasing accounts receivable and merchandise inventory and decreasing fixtures, the adjusted capital balance is $224,000. For Sales Records, the unadjusted capital balance was $195,200 but after decreasing fixtures and increasing goodwill, the adjusted capital balance is also $224,000. For Basco, the unadjusted capital balance was $35,200 but after decreasing accounts receivable and fixtures, the adjusted capital balance is $31,500. Basco's capital ratio is 40% of the

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    Case B - Problem 1-4

    POV of Roces' Records Carrying Amount Agreed Value Changes


    Accounts Receivable 57,600.00 56,000.00 -1,600.00
    Fixtures 64,000.00 80,000.00 16,000.00
    Merchandise Inventory 124,800.00 132,800.00 8,000.00
    Goodwill - 40,000.00 40,000.00

    Unadjusted Capital Balance of Roces 161,600.00


    1. Decrease in Accounts Receivable -1,600.00
    2. Increase in Fixtures 16,000.00
    3. Increase in Merchandise Inventory 8,000.00
    4. Increase in Goodwill 40,000.00
    Adjusted Capital Balance of Roces 224,000.00

    POV of Sales' Records Carrying Amount Agreed Value Changes


    Fixtures 8,000.00 4,800.00 -3,200.00
    Goodwill - 32,000.00 32,000.00

    Unadjusted Capital Balance of Sales 195,200.00


    1. Increase in Fixtures -3,200.00
    2. Increase in Goodwill 32,000.00
    Adjusted Capital Balance of Sales 224,000.00

    Partnership Balances for the following accounts:


    Cash 19,200.00
    Accounts Receivable 115,200.00
    Merchandise Inventory 324,800.00
    Delivery Equipment 46,400.00
    Fixtures 84,800.00
    Prepaid Insurance 8,000.00

    Cases B - Problem 1-3


    POV of Basco' Records Carrying Amount Agreed Value Changes
    Accounts Receivable 14,400.00 11,200.00 -3,200.00
    Furniture and Fixtures 4,000.00 3,500.00 -500

    Unadjusted Capital Balance of Basco 35,200.00


    1. Decrease in Accounts Receivable -3,200.00
    2. Decrease in Furniture and Fixtures -500
    Adjusted Capital Balance of Basco 31,500.00

    RATIO ACTUAL ADJUSTMENT AGREED


    Basco 40.00% 31,500.00 31,500.00 40.00%
    Torre 60.00% 47,250.00 47,250.00 60.00%
    78,750.00 78,750.00 TOTAL

    40% OF THE TOTAL CAPITAL OF THE PARTNERSHIP = BASCO'S CAPITAL


    40% OF TCP = P31,500 TCP = P31,500 / 40%

    1. Magfocus sa partner na kumpleto ang data - may ratio / percent at capital


    2. Kapag nagfocus sa partner na may kumpletong data, ang gagawin ay ididivide ang capital sa ratio
    at ang makukuha ay ang TOTAL CAPITAL NG PARTNERSHIP.
    3. Para makuha ang capital ng naiwang partner, ibawas ang total sa capital ng partner na may kumpletong data.

    Application Example:
    RATIO CAPITAL
    Partner A 30.00% 105,000.00
    Partner B 70.00% 245,000.00 Partner with complete data
    350,000.00

    Application Example - For Bonus Method


    ACTUAL ADJUSTMENT AGREED
    Partner A 105,000.00 35,000.00 140,000.00 40%
    Partner B 245,000.00 -35,000.00 210,000.00 60%
    350,000.00 350,000.00

    The total actual capital = total agreed capital

    Adjusting Entry:
    B, Capital 35,000.00
    A, Capital 35,000.00

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