Journal Entry

a. Mulles, Capital ₱304,000.00

Accounts Receivable
To record decrease of Uncollectible Accounts.
Allowance for Doubtful Accounts ₱117,000.00
Mulles, Capital
To record eliminating allowance.
b. Mulles, Capital ₱112,500.00
Inventory
To record decrease of Inventory.
c. Mulles Capital ₱29,250.00
Prepaid Rent
To record the used prepaid rent by Mulles.
d. Mulles, Capital ₱90,000.00
Store Equipment
To record the decrease of Store Equipment
Accumulated Depreciation Adjustment
e. Accumulated Depreciation ₱97,500.00
Mulles, Capital
To record accumulated depreciation of Store Equipment.

Mulles, Capital
Beg. ₱2,714,250.00
a. ₱304,000.00 a. ₱117,000.00
b. ₱112,500.00 e. ₱97,500.00
c. ₱29,250.00
d. ₱90,000.00
₱535,750.00 ₱2,928,750.00
₱535,750.00
₱2,393,000.00
 Books of Mulles
Cash
₱304,000.00 Accounts Receivable
s. Inventory
Store Equipment
₱117,000.00 Notes Payable
Accumulated Depreciation
Mulles, Capital
₱112,500.00 To record the investment of Mulles
Books of Lucena
Cash ₱2,393,000.00
₱29,250.00 Land ₱1,450,000.00
Building ₱500,000.00 ₱1,950,000.00
₱443,000.00
₱90,000.00 Cash ₱443,000.00
t Building ₱500,000.00
nt Land ₱1,450,000.00
Lucena, Capital ₱2,393,000.00
₱97,500.00
ipment.
lles
₱229,500.00
₱1,799,000.00
₱900,000.00
₱300,000.00
₱330,000.00
₱505,500.00
₱2,393,000.00

cena

(cash to be contributed by lucena

 BOOKS OF X
Accounts Payable ₱236,000.00
Accrued Expenses ₱22,000.00
Notes Payable ₱750,000.00
Allowance for Doubtful Accounts ₱18,000.00
X, Capital ₱926,000.00
Cash ₱37,000.00
Accounts Receivable ₱220,000.00
Inventory ₱460,000.00
Property and Equipment ₱1,235,000.00
To close the books of X

Books of the Partnership

Cash ₱37,000.00
Accounts Receivable ₱220,000.00
Inventory ₱460,000.00
Property and Equipment ₱1,235,000.00
Accounts Payable ₱236,000.00
Accrued Expenses ₱22,000.00
Notes Payable ₱750,000.00
Allowance for Doubtful Accounts ₱18,000.00
X, Capital ₱926,000.00
To record the investment of X
Cash ₱80,000.00
Accounts Receivable ₱80,000.00
Inventory ₱351,000.00
Property and Equipment ₱574,000.00
Accounts Payable ₱91,000.00
Accrued Expense ₱14,000.00
Allowance for Doubtful Accounts ₱17,000.00
Y, Capital ₱963,000.00
To record the investment of Y
 BOOKS OF Y
Accounts Payable ₱91,000.00
Accrued Expense ₱14,000.00
Allowance fir Doubtful Accounts ₱17,000.00
Y, Capital ₱963,000.00
Cash ₱80,000.00
Accounts Receivable ₱80,000.00
Inventory ₱351,000.00
Property and Equipment ₱574,000.00
To close the books of Y

X and Y
Statement of Financial Position
Oct. 31, 2010

ASSETS
Current Assets:
Cash ₱117,000.00
Accounts Receivable ₱300,000.00
Less:Allowance for D.A ₱35,000.00 ₱265,000.00
Inventory ₱811,000.00
Total Current Assets ₱1,193,000.00
Non Current Asset:
Property and Equipment ₱1,809,000.00

Total Assets ₱3,002,000.00

X and Y
f Financial Position
t. 31, 2010

LIABILITIES & OWNER'S EQUITY

Current Liabilities:
Accounts Payable ₱327,000.00
Accrued Expenses ₱36,000.00
Notes Payable ₱750,000.00
Total Liabilities ₱1,113,000.00
Owners Equity
X, Capital ₱926,000.00
Y, Capital ₱963,000.00
Total Owners Equity ₱1,889,000.00
Total Liabilities & O.E ₱3,002,000.00