10:21 PM52%1 of 1A Sole Proprietor and an Individual with No Business Form a PartnershipOn Apr. 8, 2019, Tolentino who has her own retail business and Tan, decided to form apartnership wherein they will divide profits in the ratio of 40:60, respectively. Thestatement of financial position of Tolentino is as follows:Tolentino MarketingStatement of Financial PositionApril 8, 2019AssetsCashP 4,000Accounts ReceivableLess: Allowance for Uncollectible AccountsP160,00016,000144;000InventoryEquipmentLess: Accumulated Depreciation200,000P 50,00040,000P388,00010,000Total AssetsLiabilities and CapitalAccounts PayableTolentino, CapitalTotal Liabilities and CapitalP 36,000352,000P388,000Conditions agreed upon before the formation of the partnership:a. The accounts receivable of Tolentino is estimated to be 70% realizable.b. The accumulated depreciation of the equipment will be increased by P10,000.c. The accounts payable will be assumed by the partnership.d. The capital of the partnership is based on the adjusted capital balance of Tolentino.Tan is to contribute cash in order to make the partner's capital balancesproportionate to the profit and loss ratio.

The following calculations are done for Tolentino marketing to show the capital contributions in…

A Sole Proprietor and an Individual with No Business Form a Partnership On Apr. 8, 2019, Tolentino who has her own retail business and Tan, decided to form a partnership wherein they will divide profits in the ratio of 40:60, respectively. The statement of financial position of Tolentino is as follows: Tolentino Marketing Statement of Financial Position April 8, 2019 Assets Cash P 4,000 Accounts Receivable Less: Allowance for Uncollectible Accounts P160,000 16,000 144;000 Inventory Equipment Less: Accumulated Depreciation 200,000 P 50,000 10,000 40,000 P388,000 Total Assets Liabilities and Capital Accounts Payable Tolentino, Capital Total Liabilities and Capital P 36,000 352,000 P388,000 Conditions agreed upon before the formation of the partnership: a. The accounts receivable of Tolentino is estimated to be 70% realizable. p. The accumulated depreciation of the equipment will be increased by P10,000. . The accounts payable will be assumed by the partnership. d. The capital of the partnership is based on the adjusted capital balance of Tolentino. Tan is to contribute cash in order to make the partner's capital balances proportionate to the profit and loss ratio.

A Sole Proprietor and an Individual with No Business Form a Partnership On Apr. 8, 2019, Tolentino who has her own retail business and Tan, decided to form a partnership wherein they will divide profits in the ratio of 40:60, respectively. The statement of financial position of Tolentino is as follows: Tolentino Marketing Statement of Financial Position April 8, 2019 Assets Cash P 4,000 Accounts Receivable Less: Allowance for Uncollectible Accounts P160,000 16,000 144;000 Inventory Equipment Less: Accumulated Depreciation 200,000 P 50,000 10,000 40,000 P388,000 Total Assets Liabilities and Capital Accounts Payable Tolentino, Capital Total Liabilities and Capital P 36,000 352,000 P388,000 Conditions agreed upon before the formation of the partnership: a. The accounts receivable of Tolentino is estimated to be 70% realizable. p. The accumulated depreciation of the equipment will be increased by P10,000. . The accounts payable will be assumed by the partnership. d. The capital of the partnership is based on the adjusted capital balance of Tolentino. Tan is to contribute cash in order to make the partner's capital balances proportionate to the profit and loss ratio.

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 12.1APR

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