Partners Abada and Albano agreed to combine their businesses into a partnership. The statement of financial position accounts of Abada and Albano are shown below. ABADA ALBANO Book Value Agreed Value Book Value Agreed Value Cash ₱ 50,000 ₱ 50,000 ₱ 70,000 ₱ 70,000 Accounts Receivable 460,000 460,000 490,000 490,000 Allowance for Uncollectible Accounts 30,000 40,000 40,000 50,000 Merchandise Inventory 900,000 1,080,000 720,000 750,000 Equipment 180,000 120,000 90,000 70,000 Accumulated Depreciation 36,000 ----- 9,000 ----- Furnitures and Fixtures 120,000 90,000 ----- ----- Accumulated Depreciation 24,000 ----- ----- ----- Accounts Payable 540,000 540,000 360,000 360,000 Instruction: Assuming that the partnership is to open new set of books, give the journal entries to record the investment of Abada and Albano.
Partners Abada and Albano agreed to combine their businesses into a partnership. The
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ABADA |
ALBANO |
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Book Value |
Agreed Value |
Book Value |
Agreed Value |
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Cash |
₱ 50,000 |
₱ 50,000 |
₱ 70,000 |
₱ 70,000 |
|
Accounts Receivable |
460,000 |
460,000 |
490,000 |
490,000 |
|
Allowance for Uncollectible Accounts |
30,000 |
40,000 |
40,000 |
50,000 |
|
Merchandise Inventory |
900,000 |
1,080,000 |
720,000 |
750,000 |
|
Equipment |
180,000 |
120,000 |
90,000 |
70,000 |
|
Accumulated |
36,000 |
----- |
9,000 |
----- |
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Furnitures and Fixtures |
120,000 |
90,000 |
----- |
----- |
|
Accumulated Depreciation |
24,000 |
----- |
----- |
----- |
|
Accounts Payable |
540,000 |
540,000 |
360,000 |
360,000 |
Instruction: Assuming that the partnership is to open new set of books, give the
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