|The following account balances were taken from the books of Aztra, a sole proprietor before admitting Nica to form a partnership. Accounts Receivable Allowance for bad debts Equipment Accum. Depreciation – Equipment Notes Payable Aztra, Capital Php 50,000 1,000 60,000 20,000 30,000 59,000 Aztra admits Nica as a partner in the partnership with a total agreed capitalization of Php 200.000. Nica contributes cash that will give her 50% claim in the partnership. Aztra is to invest additional cash after the partnership's assets and liabilities are to be 'adjusted per agreement as follows: a. The realizable amount of accounts receivable is Php 45,000. b. The equipment is to be stated at its depreciated value of Php 34,000. c. Accrued interest on notes payable should be recognized, Php 1,000.
|The following account balances were taken from the books of Aztra, a sole proprietor before admitting Nica to form a partnership. Accounts Receivable Allowance for bad debts Equipment Accum. Depreciation – Equipment Notes Payable Aztra, Capital Php 50,000 1,000 60,000 20,000 30,000 59,000 Aztra admits Nica as a partner in the partnership with a total agreed capitalization of Php 200.000. Nica contributes cash that will give her 50% claim in the partnership. Aztra is to invest additional cash after the partnership's assets and liabilities are to be 'adjusted per agreement as follows: a. The realizable amount of accounts receivable is Php 45,000. b. The equipment is to be stated at its depreciated value of Php 34,000. c. Accrued interest on notes payable should be recognized, Php 1,000.
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Transcribed Image Text:The following account balances were taken from the books of Aztra, a sole proprietor before
admitting Nica to form a partnership.
Accounts Receivable
Php 50,000
1,000
60,000
20,000
30,000
59,000
Allowance for bad debts
Equipment
Accum. Depreciation – Equipment
Notes Payable
Aztra, Capital
Aztra admits Nica as a partner in the partnership with a total agreed capitalization of
Php 200,000. Nica contributes cash that will give her 50% claim in the partnership. Aztra is to
invest additional cash after the partnership's assets and liabilities are to be adjusted per
agreement as follows:
a. The realizable amount of accounts receivable is Php 45,000.
b. The equipment is to be stated at its depreciated value of Php 34,000.
c. Accrued interest on notes payable should be recognized, Php 1,000.
Required:
1. Adjusting entries
2. Journal entries to record the investment of Aztra and Nica in the partnership books.
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