Assessment on Journalizing Partnership Accounts-Q2.pdf -...

Assessment on Journalizing Selected Partnership Transactions on Formation
I
Journalize the following transactions affecting partnership accounts of X & Y Partnership.
1. Partner X invested P 420,000 cash and P100,000 office equipment to the partnership. It was agreed that the office
equipment is to be valued at 80%.
2. Partner Y invested the following to the partnership
Costs Fair Values
Land P 100,000 P 300,000
Truck 200,000 100,000
Accounts Payable (assumed by the partnership) 45,000 50,000
It was agreed that partner Y will contribute additional cash to obtain equal capital contribution with partner X.
They agreed that they will share profit and loss equally.
3. The partnership paid P 50,000 personal debt of partner Y
4. Partner X borrowed money from the partnership amounting to P100,000. This is evidenced by a 6% 12 month
promissory note.
5. The partnership borrowed money from partner Y amounting to P120,000. The loan agreement provides that the
partnership will pay with interest if not paid within 3 months
6. At the end of the accounting period, the partnership