Self-Assessment

Formation of Partnership

1-Jan
Cash 18,000
Equipment 8,000
Land 20,000
X's Capital 18,000
Y's Capital 28,000

2-Jan
To record the sale of Land
Cash 25,000
Land 20,000
Gain on sales of Land 5,000
1. Profits are divided in accordance with the beginning capital

Statement of Partner's Capital

Profit: 290,000
R S M
Capital Beginning 60,000 75,000 40,000
Add: Additional Investment
Total
Less: Withdrawal
Capital Balance before Profit
Add: Profit shares 99429 189130 290000
Capital Balance Ending 159,429 264,130 330,000

R S M
Capital Beginning 60,000 75,000 40,000
Add: Additional Investment 25000( march20000 (august30000 (sept 30)
Total 85,000 95,000 70,000
Less: Withdrawal 15000 (july 3110000 (april 15000 (july 1)
Capital Balance before Profit 70,000 85,000 55,000
Add: Profit shares
Capital Balance Ending

R
Date
Jan 1 balance 60,000 3 180000
March 31 investment 85,000 4 340000
July 31 withdrawal 70,000 5 350000
870000
Average Capital 72500
Profit share 92080

Profit
290,000
5.     Profits are distributed as follows
▪       Allowed salaries per year for all partners 20,000 each.
▪       5% interest on original capital contribution of the partners.
▪       R as managing partner will received a bonus of 20% of net income after deducting the interest, salaries and bonus.
▪       Balance of the profits to be divided 3:3:4 for R, S and M respectively.

Capital Beginning 60,000 75,000 40,000

Add: Additional Investment 25,000 20,000 30,000
Total
Less: Withdrawal -15,000 -10,000 -15,000
Capital Balance before Profit 70,000 85,000 55,000
Add: Profit shares 54300 72400 54300
Capital Balance Ending 124,300 157,400 109,300
 2.Profits are divided 60%, 30% and 10% for R, S and M respectively

Statement of Partner's Capital

Profit: 290,000
R S M
Capital Beginning 60,000 75,000 40,000
Add: Additional Investment
Total
Less: Withdrawal
Capital Balance before Profit
Add: Profit shares 174000 87000 29000
Capital Balance Ending 234,000 162,000 69,000

S
Date
Jan 1 balance 75,000 7 525000
Aug 1 investment 95,000 2 190000
April 31 withdrawal 85,000 3 255000
970000
80833
102664

deducting the interest, salaries and bonus.

Profit
R S M
Less: salary 20,000 20,000 20,000
5% interest on capital contribution 1250 1000 1500
Total
Less:R's bonus 20% 45250
Net
3.Profits are divided in the ratio of ending capital ratio after considering the following additional investment and withdrawals

Statement of Partner's Capital

Profit: 290,000
R S
Capital Beginning 60,000 75,000
Add: Additional Investment 25,000 20,000
Total
Less: Withdrawal -15,000 -10,000
Capital Balance before Profit 70,000 85,000
Add: Profit shares 96667 176071
Capital Balance Ending 166,667 261,071

M
Date
Jan 1 balance 40,000 9
Sept 30 investment 70,000 3
July 1 withdrawal 55,000 6

290,000
Total
60,000
3750
226,250
 45250
181,000
vestment and withdrawals

M
40,000
30,000

-15,000
55,000
290000
345,000

360000
210000
330000
900000
75000 228333 Total
95255
1. Cash 250,000 2.Cash
Arnel's Capital 250,000

Mark (40%) 250,000 300000 50,000 Mark (40%)

Mon (60%) 500,000 450000 -50,000 Mon (60%)
Arnel 250,000 250,000 0 Arnel
1,000,000 1,000,000

Mon Capital 50,000 Asset

Mark Capital 50,000 Mon Capital

6) 5*200,000=1,000,0000
1,000,000-750,000=250,000

Mark Capital (250,000+250,000(1/4))=312,500

Mon capital (500,000+250,000(1/4))=562,500
Arnel Capital 125,000
 200,000 3. Cash
Arnel's Capital 200,000 Arnel's Capital

250,000 320000 70,000 Mark (40%) 250,000 300000 50,000

500,000 480000 -20,000 Mon (60%) 500,000 450000 -50,000
200,000 200,000 0 Arnel 200,000 250,000 50,000
950,000 1,000,000 950,000 1,000,000

50,000 Asset 50,000

20,000 Mon Capital 50,000
Mark Capital 70,000 Mark Capital 50,000
Arnel Capital 50,000
4. Cash 5. Cash
Arnel's Capital Arnel's Capital

Mark (40%) 250,000 320000 70,000 Mark (40%) 250,000

Mon (60%) 500,000 480000 -20,000 Mon (60%) 500,000
Arnel 250,000 200,000 -50,000 Arnel 150,000
1,000,000 1,000,000 900,000

Mon Capital 20,000 Asset

Arnel Capital 50,000 Mon Capital
Mark Capital 70,000 Mark Capital
Arnel Capital
 280000 30,000
420000 -80,000
300,000 150,000
1,000,000

100,000
80,000
30,000
150,000
 1.Non -cash assets are sold at a lump sum price of P1,200,000.
Non-Cash Accts Jonnah Beth Jonnah Grace
Cash Grace Loan
Assets Payable Loan Capital Capital Capital
Beginning
135,000 1,600,000 750,000 20,000 40,000 450,000 300,000 175,000
Balance
Realizatio
1,200,000 -1,600,000 -80,000 -120,000 -200,000
n
Balance 1,335,000 0 750,000 20,000 40,000 370,000 180,000 -25,000
Payment
-750,000 -750,000
of AP
Balance 585,000 0 0 20,000 40,000 370,000 180,000 -25,000
Absorptio
-40,000 40,000
n of loan
Payment
-20,000 -20,000
of loan
Balance 565,000 0 0 0 0 370,000 180,000 15,000
Payment
-565,000 0 0 0 0 -370,000 -180,000 -15,000
of capital
Balance -0- -0- -0- -0- -0- -0- -0-

2.Non-cash assets are sold as follows:

Non-Cash Loans Capital
Cash Liabilities
Assets Jonna Grace Beth Jonna Grace
Beginning
135,000 1,600,000 750,000 20,000 40,000 450,000 300,000 175,000
Balances
Realizatio
n of
Assets –
January 450,000 -600,000 -30000 -45000 -75000
Realizatio
n of
Assets –
February 200,000 -300,000 -20000 -30000 -50000
Realizatio
n of
Assets –
March 200,000 -400,000 -40000 -60000 -100000
Absorptio
n by loan -40,000 40,000
Realizatio
n of
Assets –
April 200,000 -300,000 -20000 -30000 -50000
Balances 1,185,000 0 750,000 20,000 0 340,000 135,000 -60,000
Payment
of
Liabilites -750,000 -750,000
Payment
of Loan to
Jonna -20,000 -20,000
Balances 415,000 0 0 0 0 340,000 135,000 -60,000
Absorptio
n of
Deficiency -24,000 -36000 60,000
Balances 415,000 0 0 0 0 316,000 99,000 0
Payment
of Capital -415,000 0 0 0 0 -316,000 -99,000 0
Balances 0 0 0 0 0 0 0 0
Cash 1,200,000 Grace Capital 40,000

Beth Capital 80,000 Grace Loan

40,000
Jonna capital 120,000
Grace Capital 200,000 Beth Capital 370,000
Non Cash Asset 1,600,000 Jonna capital 180,000
Grace Capital 15,000

Liabilities 750,000 Cash

565,000
Cash 750,000

Jonnah's Loan 20,000

Cash 20,000

January February

Cash 450,000 Cash 200,000

Beth Capital 30,000 Beth Capital 20,000

Jonna capital 45,000 Jonna capital 30,000

Grace Capital 75,000 Grace Capital 50,000

Non Cash Asset 600,000 Non Cash Asset 300,000

Liabilities 750,000 Jonna Loan 20,000

 Cash 750,000 Cash 20,000

To record the absorption of Deficiency To record the payment of partners

Beth Capital 24,000 Beth Capital 316,000

Jonna capital 36,000 Jonna capital 99,000

Grace Capital 60,000 Cash 415,000
March April

Cash 200,000 Cash 200,000

Beth Capital 40,000 Beth Capital 20,000

Jonna capital 60,000 Jonna capital 30,000

Grace Capital 100,000 Grace Capital 50,000

Non Cash Asset 400,000 Non Cash Asset 300,000

Grace Capital 40,000

Grace Loan 40,000