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    LASALA Partnership Formation SW

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    Lizzeille Anne Amor Macalintal
    This document discusses several partnership accounting problems involving partners' capital and drawing accounts, loans to and from partners accounts, and capital contributions. For the first problem, it provides transactions for Partner A's capital and drawing accounts and requires preparation of T-accounts and journal entries. The second problem involves reclassifying loans to and from partners accounts. The third addresses journal entries for initial capital contributions when the percentage of each partner's contribution is specified.

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    LASALA Partnership Formation SW

    Uploaded by

    Lizzeille Anne Amor Macalintal
    104 views2 pages
    This document discusses several partnership accounting problems involving partners' capital and drawing accounts, loans to and from partners accounts, and capital contributions. For the first problem, it provides transactions for Partner A's capital and drawing accounts and requires preparation of T-accounts and journal entries. The second problem involves reclassifying loans to and from partners accounts. The third addresses journal entries for initial capital contributions when the percentage of each partner's contribution is specified.

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    LASALA_Partnership_Formation_SW.docx

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    This document discusses several partnership accounting problems involving partners' capital and drawing accounts, loans to and from partners accounts, and capital contributions. For the first problem, it provides transactions for Partner A's capital and drawing accounts and requires preparation of T-accounts and journal entries. The second problem involves reclassifying loans to and from partners accounts. The third addresses journal entries for initial capital contributions when the percentage of each partner's contribution is specified.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    104 views2 pages

    LASALA Partnership Formation SW

    Uploaded by

    Lizzeille Anne Amor Macalintal
    This document discusses several partnership accounting problems involving partners' capital and drawing accounts, loans to and from partners accounts, and capital contributions. For the first problem, it provides transactions for Partner A's capital and drawing accounts and requires preparation of T-accounts and journal entries. The second problem involves reclassifying loans to and from partners accounts. The third addresses journal entries for initial capital contributions when the percentage of each partner's contribution is specified.

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    LASALA, JAZMINE C.

    A1D

    Partnership Formation:
    Seatwork 1 and 2

    Problem 1. – Partner’s Capital and Drawing

    The Following transactions are shown in the records of A partner’s capital and drawing
    accounts.

    A. Capital
    1. Beginning balance, P 100,000
    2. Correction of understatement of prior year’s income, P10,000.
    3. Additional investment, P240,000
    B. Drawing
    1. Temporary withdrawals, P60,000
    2. Partnership debts paid by A, P90,000.
    3. Partnership claims collected and retained by A, P20,000
    The partnership has a debit income summary balance amounting to P150,000 of which 1/3 is
    the share of A.

    Required:
    1. Prepare the T-Accounts for A’s capital and T-accounts for A’s drawing.
    Determine their respective ending balances.

    2. Make the journal entries to close the income summary account and to close the drawing
    account.

    A’s Capital A’s Drawings


    1) 100,000 1) P60,000 90,000
    10,000 20,000
    240,000 50,000
    P 40,000 P 350,000 130,000
    P 40,000 P 310,000 P 40,000 90,000

    The capital of partner A’s Capital has an ending balance of P 310,000 and his/her ending
    balance for A, Drawings is P40,000.

    ACCOUNT TITLE DEBIT CREDIT


    Income Summary 50,000
    A, Drawing 50,000
    A, Capital 40,000
    A, Drawings 40,000

    This study source was downloaded by 100000841671451 from CourseHero.com on 02-11-2022 04:55:38 GMT -06:00

    https://www.coursehero.com/file/57208264/LASALA-Partnership-Formation-SWdocx/
    Problem 2: Loans to and from Partners
    The loans to and from partners account of Cute and Tong Partnership shows the following
    ledger:

    Loans to and from Partners

    01/01 Cute 50,000 03/01 Tong 30,000


    08/30 Tong 20,000 05/30 Cute 60,000

    Required:
    Make the reclassifying journal entries if the partners agree to segregate the “loans to and from
    partner’s” account using the “loans to partner’s (each partners name) “loans from partner (each
    partner’s name).

    DATE ACCOUNT TITLE DEBIT CREDIT


    01 – Jan Cash 50,000
    Loans to Partner – Cute 50,000
    01 – Mar Loans from Partner – Tong 30,000
    Cash 30,000
    30 – May Loans from Partner – Cute 60,000
    Cash 60,000
    30 - Aug Cash 20,000
    Loans to Partner – Tong 20,000

    Problem 3: Issues in Capital Contribution


    Mar and Ria agreed to form a partnership with a total agreed capital contribution of P500,000
    cash.
    Required:
    Make the Journal entries for the partner’s respective initial contribution to the partnership
    assuming that:

    1. There was no agreement as to how much would be the specific share of each partner.
    2. The contribution would be 60% and 40% for Mar and Ria, respectively.
    TABLE 1

    ACCOUNT TITLE DEBIT CREDIT


    Cash 500,000
    Mar, Capital 250,000
    Ria, Capital 250,000

    TABLE 2

    ACCOUNT TITLE DEBIT CREDIT


    Cash 500,000
    Mar, Capital 300,000
    Ria, Capital 200,000

    This study source was downloaded by 100000841671451 from CourseHero.com on 02-11-2022 04:55:38 GMT -06:00

    https://www.coursehero.com/file/57208264/LASALA-Partnership-Formation-SWdocx/
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