CHAPTER 2
Nature and Formation of a Partnership
E 2-1
a. Cash 400,000
Alonzo, Capital 400,000
b. Accounts Receivable 500,000
Allowance for Uncollectible Accounts 50,000
Alonzo, Capital 450,000
c. Inventories 240,000
Alonzo, Capital 240,000
P300,000 x 80% = P240,000
d. Equipment 540,000
Alonzo, Capital 540,000
P900,000 x 6/10 = P540,000
E 2-2
1. Cash 450,000
Accounts Receivable 180,000
Merchandise Inventory 270,000
Equipment 125,000
Allowance for Uncollectible Accounts 10,000
Accounts Payable 105,000
Notes Payable 90,000
Aquino, Capital 820,000
2. Cash 520,000
Asuncion, Capital 520,000
E 2-3
1. a. Amores, Capital 23,000
Allowance for Uncollectible Accounts 23,000
b. Merchandise Inventory 176,000
Amores, Capital 176,000
c. Prepaid Expenses 72,000
Accounts Payable 32,000
Amores, Capital 40,000
d. Cash 902,500
Andrada, Capital 902,500
(P1,612,000 – P23,000 + P176,000 + P40,000 = P1,805,000 ÷ 2/3 x 1/3 = P902,500)
