ACCOUNTING

FOR SPECIAL
TRANSACTIONS

Adrian T. Noval
 1
Module 1
Partnership Accounting

WARM UP ACTIVITY: Test your previous knowledge about

partnership by answering the questions below. This is a non-graded activity.

1. Give the definition of a partnership.

Partnership is a business organization and a separate legal entity that consists of two or
more partners with the goal of earning revenues for the benefit of its partners. Compared to a
corporation, partnerships are not subject to heavy taxes and it is easy to establish. However,
partnerships have a limited life and partners are subject to unlimited liability that goes beyond
personal earnings regarding partnership debts. Partnerships are classified into general and limited
partnerships. A general partnership is a partnership where all partners are individually liable to
partnership debts while a limited partnership is the opposite except that at least one general partner
should be part of the limited partnership.

2. Distinguish a partnership form a sole proprietor and a corporation.

There are many distinguishing factors between the three. As mentioned above, a
partnership is owned by two or more partners with the goal of generating revenue for the benefit
of the partners. Easy to establish, tax free, unlimited liability and have a limited life. Sole
proprietorships are businesses owned by one owner who’s the only person subject to unlimited
liability. Aside that it is also easy to establish, tax free, and has a limited life, the sole
distinguishing factor of sole proprietorships is that they have full freedom of control on their
businesses without any bounds of a contract. And lastly are Corporations, as per the new law,
corporations can now be owned by at least 1 incorporator, nevertheless corporations are basically
burdened by heavy taxes and they are hard to establish since it still needs to be incorporated
through the government and its law. Corporations can also easily procure capital compared to sole
and partnerships through market securities.
 2
Partnership Formation

ENABLING ACTIVITY 1

On January 1, 2021, Alucard and Baxia agreed to form a partnership. They contributed
the following accounts subject to adjustment.
Alucard Baxia
Cash 280,000 620,000
Accounts receivable 2,000,000 6,000,000
Inventories 1,200,000 2,000,000
Land 5,000,000
Building 6,000,000
Furniture & fixtures 500,000 350,000
Intangible assets 20,000 30,000
Accounts payable 2,000,000 3,500,000
Other liabilities 1,800,000 2,500,000
Capital 6,200,000 8,000,000
The partners agreed to the following adjustments:
A. Accounts receivable of 200,000 and 450,000 are uncollectible in Alucard’s and Baxia’s
respective books.
B. Alucard’s inventory have a market value of 1,500,000 and a 250,000 cost to sell.
C. 70,000 of Baxia’s inventory are deemed worthless.
D. Intangible assets are to be written off in both books.
E. Alucard’s building is under depreciated by 500,000.

Requirements:
1. Compute for the adjusted account balances of the partners.
2. Provide the entry in the partnership’s books.

Adjusted Account Balances of Alucard

Alucard Adjusted Balance
Cash 280,000 280,000
Accounts receivable 2,000,000 1,800,000
Inventories (at cost, the lower amount) 1,200,000 1,200,000
Building 6,000,000 5,500,000
Furniture & fixtures 500,000 500,000
Intangible assets 20,000 0
Accounts payable 2,000,000 2,000,000
Other liabilities 1,800,000 1,800,000
Capital 6,200,000 5,480,000
Adjusted Account Balances of Baxia
Baxia Adjusted Balance
 3
Cash 620,000 620,000
Accounts receivable 6,000,000 5,550,000
Inventories 2,000,000 1,930,000
Land 5,000,000 5,000,000
Furniture & fixtures 350,000 350,000
Intangible assets 30,000 0
Accounts payable 3,500,000 3,500,000
Other liabilities 2,500,000 2,500,000
Capital 8,000,000 7,450,000
Journal Entry in the Books of the Partnership
Account Title Debit Credit
Cash 900,000
Accounts receivable 7,350,000
Inventory 3,130,000
Land 5,000,000
Building 5,500,000
Furniture & fixtures 850,000
Accounts payable 5,500,000
Other Liabilities 4,300,000
Alucard’s Capital 5,480,000
Baxia’s Capital 7,450,000

Partnership Operations

ENABLING ACTIVITY 2

The partnership agreement of Kupa, Atlas, and Popol stipulated the

following:
Kupa, the managing partner, shall receive a bonus of 10% of profit

Each partner shall receive a 5% interest on average capital investments.

Any remaining profit or loss shall be divided equally.

The average capital balances of the partners during the year are as follows:
Kupa P50,000
Atlas P20,000
Popol P30,000

Requirement: Compute for the respective shares of the partners on the partnership profit or
loss.
 4
Case#1: The partnership earns a profit of P120,000

KUPA ATLAS POPOL TOTAL

120,000
Bonus 12,000 - - 12,000
Interest 2,500 1,000 1,500 5,000
Profit 34,333 34,333 34,333 103,000
48,833 35,333 35,833 120,000

Note: No salary allowance was mentioned. Profit is not specified if it is the gross profit or net
of bonus/interest/salary.

Case#2: The partnership incurs a loss of P15,000

KUPA ATLAS POPOL TOTAL

(15,000)
Interest 2,500 1,000 1,500 5,000
Loss (6,667) (6,667) (6,667) (20,000)
4,167 5,667 5,167 (15,000)

Note: No salary allowance was mentioned. No bonuses earned since the partnership incurred a
loss. Since interests and salaries are fixed (stipulated) partnership payable fees, when the
partnership incurs losses, interests and salaries are also treated as loss for the individual
partners.

Partnership Dissolution

ENABLING ACTIVITY 3

Cash P260,0
00
Accounts Receivable 1,200,0
00
Inventory 1,800,0
00
TotalAssets P3,260,0
00
P620,0
Accounts Payable 00
Cecilion, Capital (70% share in P/L) 1,700,0
00
Carmilla, Capital (30% share in P/L) 940,000
Total Liabilities and Partners’ Equity P3,260,0
00
Cecilion and Carmilla Partnership admits Pharsa as a new partner to form CCP Partnership.
The partnership statement of financial position immediately before the admission of C is
shown below:

The following adjustments are determined:

 5
A. The recoverable amount of the accounts receivable is P1,150,000
B. A P200,000 recovery of a previous write-down on the inventory should be recognized.
C. Prepaid assets of P36,000 and accrued liabilities of P40,000 should be recognized.

Requirements:
A. Provide entry to record the admission of Pharsa
B. Determine the balances of the partners’ capital accounts following the admission of
Pharsa.
C. Determine the profit or loss sharing ratio of the partners after the admission of Pharsa.

Case #1: Pharsa acquires half of Carmilla’s interest for P1,000,000

A. Provide the entry to record the admission of Pharsa
Carmilla’s Capital 491,900
Pharsa’s Capital 491,900
To record the admission of Pharsa to the partnership

B. Determine the balances of the partners’ capital accounts following the admission of Pharsa.
Cecilion 70% Carmilla 30% Pharsa
Capital Beg. 1,700,000 940,000 2,640,000
AR Loss (35,000) (15,000) (50,000)
Inv. Recovery 140,000 60,000 200,000
Prepaid Assets 25,200 10,800 36,000
Accrued Liab. (28,000) (12,000) (40,000)
Capital before Pharsa 1,802,200 983,800 2,786,000
joins
Sale of Interest to Pharsa (491,900) 491,900
Capital after Pharsa joins 1,802,200 491,900 491,900 2,786,000
Note: The adjustment to the assets and liabilities is allocated first to the existing partners
before recording the admission of the new partner.

C. Determine the profit or loss sharing ratio of the partners after the admission of Pharsa.
Facts:
1. Pharsa purchased half of Carmilla’s interest which means that she 15% which is half of
Carmilla’s Capital and Cecilions capital remains at 70%.

Conclusion:
Since only Carmilla’s Capital is affected, we will not touch the portion of Cecilions P/L ratio.
Therefore, since half was taken from Carmilla’s P/L ratio and the ratio is based on the
contribution of the partner, we can presume that the 30% ratio will be divided to accommodate
both Carmilla and Pharsa. Thus the final ratio of profit/loss would be 70:15:15 Cecilion,
Carmilla, Pharsa respectively.

Case #2: Pharsa invests P712,500 cash to the partnership in exchange for a 20% interests.
Pharsa’s capital account is credited for the fair value of the 20% interest she acquired.

A. Provide the entry to record the admission of Pharsa

Cash 712,500
Pharsa’s Capital 699,700
Cecilion’s Capital 8,960
Carmilla’s Capital 3,840
To record the admission of Pharsa to the partnership
 6

B. Determine the balances of the partners’ capital accounts following the admission of Pharsa.
Cecilion 70% Carmilla 30% Pharsa
Capital Beg. 1,700,000 940,000 712,500 2,640,000
AR Loss (35,000) (15,000) (50,000)
Inv. Recovery 140,000 60,000 200,000
Prepaid Assets 25,200 10,800 36,000
Accrued Liab. (28,000) (12,000) (40,000)
Capital before Pharsa 1,802,200 983,800 712,500 3,498,500
joins
Bonus to old partners 8,960 3,840 (12,800)
Capital after Pharsa joins 1,811,160 987,640 699,700 3,498,500
(20%)
Note: Adjustments for carried over accounts are still included.

C. Determine the profit or loss sharing ratio of the partners after the admission of Pharsa.
Pharsa 20%
Cecilion 56% (100 – 20) * 70%
Carmilla 24% (100 – 20) * 30%

Case #3: Pharsa invests P712,500 cash to the partnership in exchange for a 20% interests.
Pharsa’s capital account is credited for P100,000

A. Provide the entry to record the admission of Pharsa

Cash 712,500
Pharsa’s Capital 100,000
Cecilion’s Capital 428,750
Carmilla’s Capital 183,750
To record the admission of Pharsa to the partnership

B. Determine the balances of the partners’ capital accounts following the admission of Pharsa.
Cecilion 70% Carmilla 30% Pharsa
Capital Beg. 1,700,000 940,000 712,500 2,640,000
AR Loss (35,000) (15,000) (50,000)
Inv. Recovery 140,000 60,000 200,000
Prepaid Assets 25,200 10,800 36,000
Accrued Liab. (28,000) (12,000) (40,000)
Capital before Pharsa 1,802,200 983,800 712,500 3,498,500
joins
Bonus to old partners 428,750 183,750 (612,500)
Capital after Pharsa joins 2,230,950 1,167,550 100,000 3,498,500
(20%)
Note: Adjustments for carried over accounts are still included.

C. Determine the profit or loss sharing ratio of the partners after the admission of Pharsa.
Pharsa 20%
Cecilion 56% (100 – 20) * 70%
Carmilla 24% (100 – 20) * 30%
 7
Partnership Liquidation

ENABLING ACTIVITY 4

Cash P20,000
Accounts Receivable 60,000
Receivable from Claude 10,000
Inventory 120,000
Equipment 290,000
Total P500,000

Accrued liabilities P30,000

Payable to Gusion 20,000
Claude, Capital 250,000
Gusion, Capital 200,000
Total P500,000
Claude and Gusion decided to liquidate CG partnership. Information on CG follows:
Information on the conversion of non-cash assets is as follows:
A. Only 70% of the accounts receivable was collected, the remainder is uncollectible
B. P20,000 was received for the entire inventory.
C. The equipment was sold for P310,000
D. P12,000 liquidation expenses were paid

Requirement: Prepare a statement of liquidation

CG Partnership
Statement of Liquidation
December 31, 20xx
Assets Liabilities Equity
0.55555555 0.4444444
CAPITAL
Cash Non-Cash Accrued Liabilities Payable to Gusion Claude Gusion
Balance before Liquidation 20,000 480,000 30,000 20,000 250,000 200,000
Collections of Accounts Recievable 42,000
Sale of Inventory 20,000
Recieved from Claude 10,000
Equipment was sold 310,000
Payment of Liquidation expenses -12,000
Conversion of Non-Cash assets 370,000 -480,000 -61,111 -48,889
and distribution of Loss
Total 390,000 - 30,000 20,000 188,889 151,111

Payments on Accrued Liabilities -30,000 -30,000

Payment to Gusion -20,000 -20,000
Total 340,000 - - - 188,889 151,111

Payment to Partners -340,000 -188,889 -151,111

Totals - - - - - -

Note: Total Loss is 110,000; P/L Ratios is based on capital distribution (25/45, 20/45)
 8

MAIN ACTIVITY: Write TRUE in the space provided if the statement is true,
and write FALSE if the statement is false. Then explain all of your answers in paragraph
form, why you think the statements are true or false.

1. The assets contributed to the partnership are measured in the partnership books at fair value.

TRUE. To practice fairness between partners, the fair value is the most preferred way of
measurement for the contributions to the partnership since it maintains an unquestionable and
orderly transaction between the market participants. No contribution shall be valued at an
amount that exceeds the contribution’s recoverable amount.

2. A bonus exists when the capital account of a partner is credited for an amount greater than
or less than the fair value of his contributions.

FALSE. The question is not specific in terms of what kind of bonus and on the greater than or
less than part. A bonus to the old partners exists when the credited capital is less than the fair
value of the contribution. A bonus to the new partner exists when the credited capital is more
than the fair value of the contribution.

3. Partner C contributed inventory costing P500 and with a net realizable value of P400 to a
partnership. The related accounts payable of P100 will be assumed by the partnership. The net
credit to Partner C’s capital account in the partnership books is P300.

FALSE. The answer should be P400. When valuating inventories, the measurement is done at
the lower of cost and net realizable value (PAS 2). Accounts payable are liabilities that are yet
to be payed and expense are obligations that have already been paid in an effort to generate
revenue, as such, the P100 is an independent and separate account and not a return of capital,
although related to the purchase of the inventory.

4. The designation of losses and profits can be entrusted to one of the partners if the other
partners are silent.

FALSE. A silent partner is also a partner who is classified as a limited partner who aims to
contribute only capital to the business and does not participate in the operations and
management meetings. In the absence of stipulation, the share of each partner shall be in
proportion to what they may have contributed except for Limited partners who are not liable
on losses.

5. A stipulation which excludes one or more partners form any share in the profits or losses is
void.

TRUE. Contributions pertains returns, what is the purpose of a partnership if not all partners
benefit from it? Especially when the main definition of a partnership is about generating
revenue for the benefit of all partners. Basically, this is not a practice of fairness and this is
also impossible thus it is (must be) considered to be void.

6. No bonus is allocated to any partner when the partnership incurred loss during the period.

TRUE. Practically speaking, allocating bonus at a loss will only incur more deductions on
savings since there is no gained profit. It would not benefit the partners to give bonuses when
they didn’t even earn or at least reach a profit quota.
 9
7. The insanity of a partner causes dissolution of a partnership.

TRUE. It was taught to us by our law teacher that insanity of a partner causes judicial
dissolution of a partnership that is you need to go to the court for a court order to dissolve that
partner. Insanity equates disability and the inability of the person to do his responsibilities
properly and to conduct rational and right decisions that would affect the partnership as a
whole.

8. The total assets of a partnership most likely increases when an incoming partner purchases
the interest of an existing partner.

FALSE. The total assets only increases when an incoming partner invests assets to the
partnership.

9. Liquidation is the termination of business operations or the winding up of affairs.

It is synonymous with partnership dissolution.

FALSE. Liquidation is not synonymous with Dissolution. Dissolution means that a partner
has withdrawn, died, resigned, or cannot carry on his responsibilities to the partnership. While
a Liquidation is the disbanding of the whole partnership for good.

10. During liquidation, the deficiency in the capital balance of an insolvent partner is absorbed
by the solvent partners.

TRUE. An Insolvent partner is also termed as a limited partner and it is on the general
standards that a liability of a limited partner will not exceed his contribution to the partnership
as such they are not allowed to use personal savings to pay for the partnership debts an
investment of assets could be possible. While general partners are presumed to have unlimited
liability wherein they offset the capital deficiency made by the insolvent partners and if it
results to a negative amount, additional contributions/personal savings may be used to fund
debts.
 10
REINFORCEMENT ACTIVITY: Look for a Statement of
Liquidation on partnership business, post a copy of the statement on the space
provided. Describe the steps that was used in preparing the Statement of
Liquidation

This is a sample statement of liquidation of Nichols, Newby, and Patel Partnership.

The partnership uses the Lump-sum liquidation on September 10-30, 2008. The first
step they did was to list all the pre-liquidation balances on cash, non-cash assets,
liabilities, and the capital balances of the partners. This is for the purpose of solving
the running balances after deductions.

The next step was to calculate all cash taken from different gains like the collections
of receivables and sale of assets. The proceeds are then deducted to the fair value of
the non-cash assets (Inventory, equipment, receivables, etc.) to acquire the
gains/losses which are then distributed according to the Profit/Loss ratio of the
partners. Total balances are then calculated.

And then the liabilities are paid by a deduction of cash to make its balance zero. The
deficiency of Newby was settled by collecting additional contribution of 1,200 pesos
from him since he is not insolvent and the statement proceeded to the distribution of
the remaining balances to the partners (except for Newby who is personally solvent to
pay on his capital deficiency) to finally make all accounts of the partnership to zero
and liquidate it fully.
 11

REFLECTION: In 5 to 10 sentences, write an experience you

had in the past where you have contributed something to a common fund
with a friend or a family member. For example, when you contributed
playing cards or marbles with your friend or we call it “sapar”, with the
intention of co-ownership and later on dividing the proceeds of that playing
cards or marbles for example that you have won.

Since I am a person who is technically literate on the aspects of electronics, I

was involved one time on a somewhat little partnership I had with my brother. It was
a tarpaulin layout and printing service for public purposes. He was in-charge of the
printing and delivery while I did the transactions and layouts. That was already a year
ago since he already got a new job as a bank technician. So it was a win-win for both
of us, I gained for the layouts I made since he got discounts on printing while he
works on a printing shop. It was the busy times as a freelance layout artist at Jin
Graphics a personal Facebook page I did years ago. Currently, I still do a few layouts
from friend inquiries but not as busy as that time. It might not be an actual tangible
contribution of assets and funds but rather an elaborate co-owned unnamed
partnership with a contribution of services that aims to divide the proceeds between
me and my brother.
 12

Module 2
Corporate Liquidation, Home Office and Branch Accounting, and
Joint Arrangements

K W
Corporate Liquidation
like partnership
liquidation but involves
additional processes
like solving of taxes
and other matters.
There is not much that I
know about Home
Office and Branch
Accounting but I think
this means accounting
for sole proprietorships
(home office) and on
subsidiaries,
consolidated
statements, and some
product line accounting
(Branch Accounting)
and Joint Arrangements
also known as Joint
venture that are
established for specific
and special short-term
purposes like
construction activities.
Probably Joint venture
accounting is involved
in this topic.
What I want to know
about Module 2 is
about the proper
process and know
how’s of the statement
of the corporate
liquidation. I also want
to know what Home
office and Branch
accounting is all about.
And also the
accounting for joint
ventures would also be
very much anticipated.
L
Statement of corporate
liquidation is quite an
interesting topic. I
learned a lot about
determining all those
classifications of
liabilities and assets. On
the secured and
unsecured creditors those
free assets and etcetera. It
was also nice to learn
more about the format
and step by step process
of the statement of
affairs. On Home office
and branch accounting, I
learned that the home and
branch books are separate
books that has its own
entries that should always
be checked and
reconciled. And finally
on joint arrangements, it
talks about the
accounting of short-term
temporary partnerships
its formation, operations
and liquidation with its
own unique entries and
transaction cycle systems.

WARM UP ACTIVITY/ RELFECTION

I
nstructions: In the first column, please write what you already know about our topic. The next
column is intended for you to write what you want to know. And finally the last column, you
will fill it up once you are done answering the module. You will write what you have learned
in the last column.
 13
Corporate Liquidation

ENABLING ACTIVITY 1

GGWP Corporation is undergoing liquidation. The financial position as of January 1,

2021 is shown below:

ASSETS Carrying Amounts Net Realizable Value

Cash ₱ 100,000 ₱ 100,000
Accounts Receivable 600,000 500,000
Inventories 900,000 500,000
Machinery - net 600,000 300,000
Building - net 800,000 1,000,000
TOTAL ASSETS 3,000,000 2,400,000

LIABILITIES
Accrued Payables 300,000 300,000
Accounts Payable 700,000 700,000
Income Tax Payable 1,000,000 1,000,000
Short-Term Bank Loan 500,000 500,000
Mortgage Payable 700,000 700,000
TOTAL LIABILITIES 3,200,000 3,200,000

EQUITY
Share Capital 1,200,000
Deficit -1,400,000
Capital Deficiency -200,000

TOTAL LIABILITIES & EQUITY 3,000,000

Additional information:
- Legal and other fees expected to be incurred during liquidation process is P60,000.
- The machinery is pledged as collateral security for the short term bank loan.
- The building is pledged as collateral security for the mortgage payable.

Requirements:
a) Identify the following classifications of the assets: (1) Assets pledged to fully secured
creditors; (2) Assets pledged to partially secured creditors; and (3) Free assets and Net
free assets.

There are three classification of assets in the Statement of Affairs. First are those assets
pledged to fully secured creditors, this are those assets that are used as collateral to pay the
liabilities from creditors were in the assets used as collateral is greater than the liability paid,
thus assures and secures the creditor that it would be fully paid. The excess will then be
available to other debts and classified as a free asset. The second classification are those assets
that are pledged to partially secured creditors like the first classification but this time, the asset
used as collateral is lesser than the liability paid. This partially gives assurance and security to
 14
the creditor that the debt will be fully paid. And lastly are those free assets that are not used as
collaterals (pledged) to any other liabilities.

b) Identify the following classifications of the liabilities: (1) Unsecured liabilities with
priority; (2) Fully secured liabilities; (3) Partially secured liabilities; and (4) Unsecured
liabilities without priority.

There are four classification of liabilities in the Statement of Affairs. First are those Unsecured
liabilities with priority, as its name says, these are liabilities that regardless if not secured by
an asset, they are required to be paid according to the law before any other liabilities.
Examples of these payables are those Administrative expenses, Unpaid employee salaries and
other benefits and corporate taxes and assessments. The second one are those fully secured
liabilities where in the realizable value of the collateral assets are greater than the liability. The
same as the second one but the liabilities are only partially secured that is the realizable value
of the collateral asset is lesser than the liabilities. And finally those that do not fall on the first,
second, and third classifications are classified as unsecured liabilities without priority.

c) Compute for the estimated deficiency.

Realizable Values
Assets 2,400,000
Liabilities -3,260,000
-860,000
The difference between the restated assets and liabilities represents the estimated deficiency in
the settlement of unsecured non-priority creditors.

d) Compute for the estimated recovery percentage.

Estimated recovery percentage Net free Assets

of unsecured creditors without = Total unsecured liabilities
priority without priority
Net free Assets Total unsecured liabilities without priority
Cash ₱ 100,000 Accrued Payables ₱ 300,000
Accounts Receivable 500,000 Accounts Payable 700,000
Excess from partially
Inventories 500,000 200,000
secured liabilities
Free Assets from
300,000 TOTAL ₱ 1,200,000
pledged building
Total unsecured
-1,060,000
liabilities with priority
TOTAL ₱ 340,000

340,000/1,200,000 = 0.28333 ~ 28.33% Estimated recovery percentage

e) If you are a creditor of GGWP Corporation for P100,000 classified as accrued payables,
how much would you expect to receive from your claim?

100,000 * 28.33% = 28,330

Note: Accrued payable is part of the unsecured liabilities without priority thus we use the
estimated recovery percentage to solve for the expected recovery of the claim. Otherwise the
claim would be fully recoverable if it was one of the unsecured liabilities with priority.
 15
f) If you are a stockholder of GGWP corporation holding 1000 shares with P10 par value,
how much would you expect to receive from your claim?

Based on the general rule on the priority of payments. The first in line for payments are
always the secured creditors those whose liabilities are pledged with corresponding assets.
Then next would be the other unsecured liabilities with priority as mandated by the
government like taxes and administrative expenses. Then those other unsecured liabilities and
lastly the stock holders regardless if their stocks are preferred or common. More often than
not, the stock holders won’t get repaid when a company liquidates. If I was a stockholder of
GGWP corporation holding 1,000 shares with P10 par value, seeing the summary of the
financial statement of the corporation at liquidation date, liabilities are more than the
realizable value of the assets which means that the assets cannot pay off the total liabilities of
the firm. No excess assets (unless additional collaterals will be issued) will be used to pay off
the remaining unsecured liabilities and the stock holders return on investment.

g) Prepare the statement of affairs.

GGWP Corporation
Statement of Affairs
As of January 1, 2021

Book values ASSETS Realizable Values Available for unsecured creditors

Assets pledged to fully secure creditors:
800,000 Building - net 1,000,000
Mortgage Payable - 700,000 300,000

Assets pledged to partially secure creditors:

600,000 Machinery - net 300,000
Short-Term Bank Loan - 500,000

Free assets: -
100,000 Cash ₱ 100,000
600,000 Accounts Receivable 500,000
900,000 Inventories 500,000 1,100,000
Total free assets 1,400,000
Less: Unsecured liabilities with priority - 1,060,000
Net free assets 340,000
Estimated deficiency (squeeze) 860,000
3,000,000 1,200,000

Book values LIABILITIES AND EQUITY Realizable Values

Unsecured liabilities with priority:
1,000,000 Income Tax Payable 1,000,000
- Legal and Other fees 60,000
Total 1,060,000 -

Fully secured creditors:

700,000 Mortgage Payable 700,000

Partially secured creditors:

500,000 Short-Term Bank Loan 500,000
Machinery - net -300,000 200,000

Unsecured creditors:
300,000 Accrued Payables 300,000
700,000 Accounts Payable 700,000 1,000,000
Total unsecured creditors 1,200,000

-200,000 Shareholder's Equity - -

3,000,000 1,200,000
 16
Home Office, Branch, and Agency Accounting

ENABLING ACTIVITY 2

On January 1, 2021 Gusion Hairstylist establishes a branch for an initial cash investment
of P600,000. The following are the other transactions during the month:
a) The branch acquires supplies for P100,000 on account, one-fourth of which is charged to
the home office.
b) The branch acquires equipment fir P80,000 cash. The equipment will be carried in the
books of the branch.
c) The home office transfers old equipment with historical cost of P200,000 and
accumulated depreciation of P80,000 to the branch. The branch will carry this equipment
in its books.
d) The home office fully settles the account charged by the branch.
e) The branch settles two-thirds of its accounts payable.
f) The branch renders services for a total fee of P800,000
g) The branch remits P180,000 cash to the home office.
h) The branch pays expenses of P250,000. The home office allocates P60,000 expense to the
branch representing the branch’s share in the company’s advertisement activities. Unused
supplies at the end of the period amount to P5,000.

Requirements:
i. Provide the entries in each of the books of the home office and the branch. Provide also
the closing entries.

BRANCH
Account Title Debit Credit
Initial Cash 600,000
Home Offi ce 600,000

a Supplies 100,000
Accounts payable 75,000
Home offi ce 25,000

b Equipment 80,000
Cash 80,000

c Equipment 120,000
Home Offi ce 120,000
 17
d

e Accounts payable 50,000

Cash 50,000

f Accounts Recievable 800,000

Service Revenue 800,000

g Home Offi ce 180,000

Cash 180,000

h Advertising expense 60,000

Various expenses 250,000
Supplies Expense 95,000
Cash 250,000
Home offi ce 60,000
Supplies 95,000

HOME
Account Title Debit Credit
Initial Investment in Branch 600,000
Cash 600,000

a Investment in branch 25,000

Accounts payable - Branch 25,000

c Investment in Branch 120,000

Accumulated Depreciation 80,000
Equipment 200,000

d Accounts Payable - Branch 25,000

Cash 25,000

g Cash 180,000
Investment in Branch 180,000

h Investment in Branch 60,000

Advertising expense 60,000
 18

CLOSING
Service Revenue 800,000
Supplies Expense 95,000
Advertising expense 60,000
Various expenses 250,000
Income Summary 395,000

BRANCH HOME
i Income summary 395,000 i Investment in Branch 395,000
Home Offi ce 395,000 Income summary - Branch 395,000

ii. Reconcile the reciprocal accounts at the end of the period.

BRANCH BOOKS HOME OFFICE BOOKS

Home Office Investment in branch
600,000 Initial Initial 600,000
25,000 (a) (a) 25,000
120,000 (c) (c) 120,000
60,000 (h) (h) 60,000
395,000 (i) (i) 395,000
(g) 180,000 180,000 (g)
1,020,000 1,020,000

iii. Prepare a statement of financial position and statement of profit or loss of the branch.

Gusion Hairstylist Branch

Statement of Financial Position
January 31, 2021
Assets
Cash 40,000
Supplies 5,000
Accounts Recievable 800,000
Equipment 200,000
Total Assets 1,045,000

Liabilities and Equity

Accounts Payable 25,000
Home Offi ce 1,020,000
Total Liabilities and Equity 1,045,000

Gusion Hairstylist Branch

Statement of Profit or Loss
January 31, 2021
Service Revenue ₱ 800,000
Cost of goods sold -
Gross profit 800,000
Supplies expense - 95,000
Advertising expense - 60,000
Various expenses - 250,000
Profit for the period 395,000
 19
Joint Arrangements

ENABLING ACTIVITY 3

Ember and Void agreed to combine their existing resources to acquire and sell tickets for
an MMA fight deemed the “fight of the century”. Their agreement stipulates the following:

a. Each party is entitled to a 5% commission on purchases and 20% commission on sales.

b. Any profits shall be shared equally.
c. Each party shall record its own transactions relating to the arrangement.

Ember made total purchases of P1,000,000 and total sales of P1,200,000. Void made total
purchases of P800,000 and total sales of P1,500,000. Ember and Void incurred expenses of
P20,000 and P30,000, respectively, on account of the arrangement. The parties agreed to
charge the P200,000 cost of unsold tickets as loss.

Requirements:
i. Compute for the profit of the joint operation. P1,050,000
1 Sales ₱ 2,700,000
Cost of goods sold:
Inventory, Beg. -
Purchases 1,800,000
Total goods available for sale 1,800,000
Inventory, End. - 200,000 - 1,600,000
Gross Profit ₱ 1,100,000
Expenses - 50,000
Profit ₱ 1,050,000

Note:
This profit is based purely on operations. The profit will be adjusted later for the
additional profit and losses.

ii. Compute for the joint operator’s respective shares in the profit.
2 Ember
Profit Allocation (50%) ₱ 210,000
5% Commission on purchases 50,000
20% Commission on sales 240,000
Loss: Unsold ticket (50%) - 100,000
Net Profit ₱ 400,000

Void
Profit Allocation (50%) ₱ 210,000
5% Commission on purchases 40,000
20% Commission on sales 300,000
Loss: Unsold ticket (50%) - 100,000
Net Profit ₱ 450,000
 20
Note:
The profit and loss allocation of each joint partners are shared equally. Commissions are
based on their personal purchase and sales as shown on the calculation. Total
commissions to be received from the Joint operation is equivalent to P630,000 the
remaining P420,000 is allocated to each co-operators equally. And finally, as stipulated,
the ending inventory which are the unsold tickets are counted as losses. I included the
ending inventory at the profit and loss statements to clearly depict the profit from
operations before deducting it as a loss on the profit sharing.

iii. Compute for the cash settlements between the joint operators.

Joint Operations payable to Ember

1,000,000 Purchases
20,000 Expenses
Loss 100,000 210,000 Profit
290,000 Commissions
1,420,000 Cash Settlement

Joint Operations payable to Void

800,000 Purchases
30,000 Expenses
Loss 100,000 210,000 Profit
340,000 Commissions
1,280,000 Cash Settlement

Joint Operations recievable from Ember and Void

Sales of Ember 1,200,000
Sales of Void 1,500,000
Payment 2,700,000

Note:
Cash settlement usually happens when the Joint operation/venture liquidates since it is
just a temporary undertaking between two parties in the first place. On liquidation, the
Joint Operation reflects the payment of both co-operators to the transaction made on
behalf of the joint operations. This is usually done by adding all the accounts that the
Joint operation should settle/pay to the co-operators net of any losses/ending inventory.
 MAIN ACTIVITY: Give a short solution on each problem. Correct
answerswithout solutions shallnot be given credit.

1. On December 31, 2020, EE and FF filed a partnership, agreeing to share for profits and
losses in the ratio of 2:3, respectively. EE invested a parcel of land that cost him P25,000.
FF invested P30,000 cash. The land was sold for P50,000 on the same date, three hours
after formation of the partnership. How much should be the capital balance of EE right
after formation? P25,000

P/L 0.40 0.60

EE FF
Cash 30,000
Land 25,000
10,000 15,000 25,000 Profit
35,000 45,000

EE’s Capital is P25,000 after formation and P35,000 after the transaction.

2. On August 1, AA and BB pooled their assets to form a partnership, with the firm to take
over their business assets and assume the liabilities. Partners capitals are to be based on net
assets transferred after the following adjustments. (Profit and loss are allocated equally).

BB’s inventory is to be increased by P4,000; an allowance for doubtful accounts of P1,000

and P1,500 are to be set up in the books of AA and BB, respectively; and accounts payable of
P4,000 is to be recognized in AA’s books. The individual trial balances on August 1, before
adjustments, follow:
AA BB
Assets P75,000 P113,000
Liabilities P5,000 P34,500
What is the capital of AA and BB after the above adjustments? P65,000; P81,000
AA BB
Assets 75,000 113,000
Inventory 4,000
Allowance for doubtful Accounts -1,000 -1,500 Contra-Asset (AR)
Total Assets 74,000 115,500

Liabilities 5,000 34,500

Accounts payable 4,000
Total Liabilities 9,000 34,500

Equity (Capital) 65,000 81,000

Total Liabilities and Equity 74,000 115,500

 22
3. Lancelot is trying to decide whether to accept a salary of P40,000 or a salary of P25,000
plus a bonus of 10% of net income after salary and bonus as a means of allocating profit
among the partners. Salaries traceable to the other partners are estimated to be P100,000.
What amount of income would be necessary so that Lancelot would consider the choices to
be equal? P290,000

40,000 = 25,000 + .10(x)

15,000 = .10x
x = 150,000
Where:
x = IASAB (Income After Salaries After Bonus)

Income (IBSBB) 290,000

Salary of Lancelot -25,000
Salary of Partners -100,000
IASBB 165,000
Bonus -15,000 10%
IASAB 150,000

4. The partnership agreement of RR and SS provides that interest at 10% per year to be
credited to each partner on the basis of weighted-average capital balances. A summary of
the capital account of SS for the year ended December 31, 2022, is as follows:
Balance, Jan.1 P420,000
Additional Investment, Jul. 1 120,000
Withdrawal, Aug. 1 45,000
Balance, Dec. 31 495,000
What amount of interest should be credited to SS’s capital account for 2022? P46,125

SS Capital (a) (b) Months Outstanding c = a/12 c*b

Balance, Jan.1 420,000 12 35,000 420,000
Additional Investment, Jul. 1 120,000 6 10,000 60,000
Withdrawal, Aug. 1 - 45,000 5 - 3,750 - 18,750
Weighted average capital balance 461,250

Interest on WA of SS Capital: 461,250 * 10% = 46,125

5. AA. BB, and CC are partners with average capital balances during 2019 of P360,000,
P180,000, and P120,000, respectively. Partners receive 10% interest on their average
capital balances. After deducting salaries of P90,000 to AA and P60,000 to CC the
residual profit or loss is divided equally. In 2019 the partnership sustained a P99,000
losses before interest and salaries to partners. By what amount should AA’s capital
account change? P21,000
 23
AA BB CC -99,000
Interest 36,000 18,000 12,000 66,000
Salaries 90,000 60,000 150,000
Allocation of remaining loss -105,000 -105,000 -105,000 -315,000
As allocated 21,000 -87,000 -33,000 -99,000

6. Capital balances and profit and loss sharing ratios of the partners in the BIG
Entertainment Gallery are as follows:
Betty, Capital 50% ₱ 140,000
Iggy, Capital 30% 160,000
Grabby, Capital 20% 100,000
Total 400,000

Betty needs money and agrees to assign half of her interest in the partnership of Yessir for
P90,000 cash. Yessir pays directly to Betty. Yessir does not become a partner.
What is the total capital of the BIG Partnership immediately after the assignment to Yessir?

Still P400,000 regardless if the interest was paid in full or not, as a general rule, purchasing of
interest when joining the partnership does not change the total capital of the partnership.

7. MM, and OO are partners with capital balances of P50,000 and P70,000, respectively, and
they share profits and losses equally. The partners agree to take PP into the partnership for
a 40% interest in capital and profits, while MM and OO each retain a 30% interest. PP
pays P60,000 cash directly to MM and OO for his 40% interest, and goodwill implied by
PP’s payment is recognized on the partnership books. If MM and OO transfer equal
amounts of capital to PP, the capital balances of MM, OO, and PP after PP’s admittance
will be: P35,000; P55,000; P60,000

30% 30% 40%

MM OO PP
Capital Beg. 50,000 70,000 120,000
Goodwill 15,000 15,000 30,000
Revaluation adjustment 65,000 85,000 150,000
Transfer of Capital -30,000 -30,000 60,000 -
Adjusted Balance 35,000 55,000 60,000 150,000

Goodwill (Solution)
Amount paid 60,000
Less: Book value of interest acquired:
(50,000 + 70,000) * 40% -48,000
Excess 12,000
Divided by: PP's Interest 20%
Goodwill 30,000

Note:
Goodwill is a revaluation to the asset (gain)
Transfer of capital in this problem should be based on the 60% of total interest but it was stipulated that partners pay capital to PP equally
Unless otherwise stipulated, no good will is to be recognized in cases of admission of a new partner
 24
8. On June 30, 2019, the financial position for the partnership of CC, MM, and PP, together
with their respective profit and loss ratios, were as follows:

Assets, at cost P180,000

CC, Loan 9,000
CC, Capital (20%) 42,000
MM, Capital (20%) 39,000
PP, Capital (60%) 90,000
Total P180,000

CC decided to retire from the partnership. By mutual agreement, the assets are to be adjusted
to their fair value of P216,000 at June 30, 2015. It was agreed that the partnership would pay
CC P61,200 cash for CC’s partnership interest, including CC’s loan which is to be repaid in
full. No goodwill is to be recorded. After CC’s retirement, what is the balance of MM’s capital
account? P45,450
20% 60% 20%
MM PP CC Pro-rate
Capital, Beg. 39,000 90,000 42,000
Increase due to asset adjustment 7,200 21,600 7,200 36,000 (P/L Ratio)
Revaluation adjustment 46,200 111,600 49,200
CC, Loan 9,000
46,200 111,600 58,200
Payment to CC -61,200
Bonus to CC (2:6) -750 -2,250 3,000 (MM; 2/8, PP; 6/8)
Balance after retirement 45,450 109,350 0

9. Larry, Masha, and Natalia are partners in a company that is being liquidated. They share
profits and losses 55%, 20%, and 25%, respectively. When the liquidation begins they
have capital account balances of P108,000, P62,000, and P56,000, respectively. The
partnership just sold equipment with a historical cost and accumulated depreciation of
P25,000 and P18,000, respectively for P10,000. What is the balance of Masha’s capital
account after the transaction is completed? P62,600
55% 20% 25%
Larry Masha Natalia
Capital, Beg. 108,000 62,000 56,000
Gain on sale of equipment 1,650 600 750 3,000
Amounts received by the partners 109,650 62,600 56,750

Gain on sale of equipment (Profit - Carrying Amount)

Historical cost ₱ 25,000
Less: Accumulated Depreciation 18,000
Carrying Amount 7,000
 25
10. PP, QQ, and RR, partners to a firm, have capital balances of P11,200, P13,000, and
P5,800, respectively, and share profits in the ratio of 4:2:1. Who among the partners shall
be paid first with an available cash of P1,400? Partner QQ
Cash Priority Program
STEP 1: MLAC
4 2 1
PP QQ RR
Total Interst in the Partnership 11,200 13,000 5,800
Divide by: P/L percentage 0.571428571 0.285714286 0.142857143
Max. loss absorption capacity 19,600 45,500 40,600

Rank of payment 3rd 1st 2nd

STEP 2: MLAC Equalizing

MLAC 19,600 45,500 40,600
First - Second -4,900
Balance 19,600 40,600 40,600
First, Second - Third -21,000 -21,000
Equal balance of MLAC 19,600 19,600 19,600

STEP 3: Cash priority program

Cash priority program
PP QQ RR
Rank of Payment 3rd 1st 2nd
1st Priority (4,900 x 2/7) 1,400
2nd Priority (21,000 x 1/7 & 2/7) 3,000 6,000
Totals 3,000 7,400

11. Khufra, Inc. has forced into bankruptcy and has begun to liquidate. Unsecured claims will
be paid at the rate of 40 cents in the peso. Atlas Co. holds a collateralized machinery by
Khufra, Inc. with a liquidation value of P25,000. The total amount to be realized by Atlas
on this note receivable is:

Still P25,000. Atlas is one of Khufra’s secured creditors since he already gave Atlas a
collateral on his claim. The total claim was not specified thus presuming that regardless if the
P25,000 is partially secured or fully secured, the liquidation value of P25,000 will still be
received. All other unsecured liabilities of Khufra will be paid 40% of its amount – that is 40
cents in the peso.

12. On December 25, 2020, the statement of affairs of Nah Lugi Company, which is
bankruptcy liquidation, included the following:
Assets pledged for fully secured liabilities ₱ 100,000
Assets pledged for partially secured liabilities 40,000
Free assets 120,000
Fully secured liabilities 80,000
Partially secured liabilities 50,000
Unsecured liabilities with priority 60,000
Unsecured liabilities without priority 90,000
 26
Compute the estimated amount to be paid to:
Fully Secured Liabilities 80,000

Partially Secured Liabilities 50,000

Less: Assets pledged for partially secured liabilities -40,000
10,000

Unsecured liabilities with priority 60,000

Unsecured liabilities without priority 90,000

Add: Excess on partially secured liabilities 10,000
100,000

13. Najugsak Co. is insolvent and its statement of affairs show the following information:
Estimated gains on realization of assets ₱ 1,440,000
Estimated losses on realization of assets 2,000,000
Additional assets 1,280,000
Additional liabilities 960,000
Capital stock 2,000,000
Deficit 1,200,000
The pro-rate payment on the peso to stockholders (estimated amount to be recovered by
stockholders) is: 58%
To solve for Assets less Liabilities at bookvalue
A-L=E

Where E (Bookvalue of shareholder's equity)

Capital Stock (Share Capital) ₱ 2,000,000
Less: Deficit (Retained Earnings) 1,200,000
Assets less Liabilities at bookvalue 800,000

Assets less Liabilities at bookvalue ₱ 800,000

Estimated gains on realization of assets 1,440,000
Additional assets 1,280,000
Estimated losses on realization of assets - 2,000,000
Additional liabilities - 960,000
Net assets available to shareholders ₱ 560,000
Divide by: Bookvalue of shareholder's Equity 960,000
Recovery percentage of Shareholders 58%

Note:
The goal on finding the recovery percentage of shareholders is based on
Net assets/Shareholder's Equity both calculated in its bookvalues.

This measures the percentage of assets that comprises the equity that
can still be recovered by the stock holders on liquidation.
 27
14. A branch store in Cagayan was established by Badang Company on March 1.
Merchandise was billed to the branch at 125% of cost. Shipments of merchandise were as
follows:

March 5 (at billed price) 120,000

March 10 (at billed price) 50,000
March 20 (at billed price) 35,000
On March 22 the branch returned defective merchandise worth P3,050.
On March 31, the branch reported a net loss of (P6,200) and merchandise inventory of P85,000.
In the home office books, the cost of merchandise sold by branch was: P93,560

AOI at cost (at billed) 25% 20%

Cost Billed Mark-up (AOI)
Beginning Inventory - - -
Shipments from HO 164,000 205,000 41,000
Less: Shipments returned to HO 2,440 3,050 610
Goods Available for Sale 161,560 201,950 40,390
Less: Ending Inventory 68,000 85,000 17,000
Cost of Goods Sold 93,560 116,950 23,390

15. Lapu-lapu Corporation’s shipments to and from its Bislig City branch are billed at 120%
of cost. On December 31, Bislig Branch reported the following data, at billed prices:
inventory, January 1, of P33,600; shipments received from home office of P840,000;
shipments returned of P48,000; and inventory, December 31, of P36,000. What is the
balance of the allowance for over valuation of branch inventory on December 31 before
adjustments? P6,000

Allowance for overvaluation also known as unrealized mark-ups is solved using the formula:
Bill price x (above % / (100 + above %))
Solution for the Allowance for overvaluation in the ending inventory:
P36,000 x (20/120) = P6,000

16. The Harley branch of Faramis Corporation submitted the following trial balance as of 30
June 2016:
Debit Credit
Cash 28,600
Accounts Receivable 173,800
Shipments from home office 462,000
Home office - current 324,500
Sales 369,600
Expenses 29,700
Total 694,100 694,100

Harley reported an ending inventory of P138,600.

Shipments are billed at a mark-up of 40% on cost.
What is the real net income of Harley branch? P108,900
 28
AOI at cost (at billed) 40% 20%
Cost Billed Mark-up (AOI)
Beginning Inventory - - -
Shipments from HO 330,000 462,000 132,000
Goods Available for Sale 330,000 462,000 132,000
Less: Ending Inventory 99,000 138,600 39,600
Cost of Goods Sold 231,000 323,400 92,400

Sales 369,600
Less: Cost of Goods Sold 231,000 Non-Mark-up cost
Gross profit 138,600
Less: Expenses 29,700
True Net Income 108,900

17. The Vale Sales Company established a branch in Valir City early last year. It shipped
merchandise and billed the branch for P300,000 prior to its opening. For the year, it made
additional shipments at billed price of P120,000. Within the year, the branch shipped back
P7,500 inventory and got the credit memo for said returns. On the last working day of the
year, an inventory count was made. Ending inventory of P185,000 was established
consisting of purchases from third parties at P20,000, with the balance coming from home
office shipments at billed price. The home office billed the branch at 20% above cost. The
total purchases of the branch from outside suppliers amounted to P72,500. The total cost
of goods available for sale by the branch at cost (net of overvaluation and returns)
amounted to: P416,250
AOI at cost (at billed) 20% 17%
Cost Billed Mark-up (AOI) Suppliers
Beginning Inventory - - - Purchases 72,500
Shipments from HO 350,000 420,000 70,000
Less: Shipments returned to HO 6,250 7,500 1,250
Goods Available for Sale 343,750 412,500 68,750
Less: Ending Inventory 137,500 165,000 27,500 Ending Inventory 20,000
Cost of Goods Sold 206,250 247,500 41,250

Goods Available for Sale at cost

Beginning Inventory -
Purchases 72,500
Shipments from HO 350,000
Less: Shipments returned to HO 6,250
Goods Available for Sale 416,250
 29

Use the following information for questions 18 to 20:

Harith, Lylia, and Nana sign an agreement to collectively purchase a yacht and to hire a
company to manage and operate the yacht in their behalf. The costs involved in running and
operating the yacht business and the revenue earned from the pipeline are shared by the three
parties based on their ownership percentage. All major operating and financing decisions
related to the yacht business must be agreed to by the three companies. The cost of purchasing
the yacht was P56,000,000. The yacht has an estimated 20-year useful life with no residual
value. The management fee for operating the yacht business for 2019 was P11,200,000.
Revenue earned from the yacht business in 2019 was P18,480,000. Harith invested
P16,800,000 for a 30% interest.

18. Compute the share of Harith in the revenue of the joint operation for 2019:
P18,480,000 * 30% = P5,544,000
Note: Harith’s ownership interest is already given by dividing his portion of investment to
the total cost of purchasing of the yacht.
19. Compute the share of Harith in the expenses of the joint operation for 2019:
(P11,200,000 + 2,800,000) * 30% = P4,200,000
Note: Since Harith’s ownership interest was already determined, we only need to check
the total expenses incurred. Total expenses for 2019 was given, but we still need to
calculate for the depreciation expense that is 56,000,000 divided by 20-year useful life
which is equal to 2,800,000 before we totally multiply the expenses by 30%.
20. Compute the share of Harith in the gross profit/net income of the joint operation for 2019:
P1,344,000
Revenue ₱ 18,480,000
Less: Cost of Goods Sold 0
Gross profit 18,480,000
Less:
Management Fee 11,200,000
Depreciation Expense 2,800,000
Net income of the Joint Operation 4,480,000
Harith's Ownership Interest 30%
Harith's Net Income ₱ 1,344,000

Note: There was no cost of goods sold recorded because the Joint operations just hired a
company to manage and operate the yacht. They did not establish a business with operations
involving selling/manufacturing of inventory assets.
 30
REINFORCEMENT ACTIVITY: Give at least 3 examples of a
business organization that have a home office and a branch. Provide the location of the
home office and its branches.

(1) Pinutos sa Kanto

(Restaurant – Sole Proprietorship owned by Roroy Minoza)

Main office:
San Miguel, Manolo Fortich, Bukidnon

Branch:
Dahilayan, Manolo Fortich Bukidnon

Source:http://www.cdodev.com/2019/09/01/pinutos-sa-kanto-still-serving-the-
best-affordable-roast-beef/

(2) SyCip Gorres Velayo & Co.

Head Office:
Makati
6760 Ayala Avenue, Makati City,
1226 Metro Manila, Philippines

Branches:
Bacolod
No. 5 & 17 2nd floor MC Metroplex B.S.
Aquino Drive, Villamonte, Bacolod City,
6100, Negros Occidental, Philippines

Baguio
3F Insular Life Bldg.,
Legarda Road corner Abanao St.,
Baguio City 2600
Tel: (074) 443-9858
Fax: (074) 442-6509

Cagayan de Oro
Suites 4 & 5, Fourth Level
Gateway Tower 1, Limketkai Center
Lapasan, Cagayan de Oro City
Tel: (08822) 726-555,
(08822) 725-078
Fax: (088) 856-4415

Cavite
Metrobank Rosario Branch Gen Trias Drive,
Tejero Rosario, Cavite
Tel: (046) 437 7780
 31
(02) 845 2065
Fax: (02) 741 1375
(046) 437 8059

Cebu
Unit 1003 & 1004, Insular Life Cebu Business Centre
Mindanao Avenue corner Biliran Road
Cebu Business Park, Cebu City

Clark
2nd Floor, 2 WorkPlus Building
Mimosa Drive, Filinvest Mimosa Leisure City
Clark Freeport Zone, Philippines, 2023

Davao
5th floor Topaz Tower, Damosa IT Park
J. P Laurel Avenue, Lanang
8000 Davao City, Philippines

General Santos
2F Elan 3 Building
Roxas Avenue, Dadiangas East
General Santos City
9500 South Cotabato

Source: http://www.sgv.ph/sgv-branches/

(3) Midtown Printing Co. Inc.

Main Office & Plant:

Km. 14, MacArthur Highway, Toril, Davao City

Branches:
Sales & Design Office
MPCI Building, Bonifacio Street, Davao City

Photography & Print Center

Martin Hall Building 2 Ateneo de Davao University, Jacinto Street, Davao City

Print Center (Matina)

Ateneo De Davao Grade School Parking Lot, Acacia Cor. Camachili, Juna Subd.,
Davao City

Manila Satellite Office

Unit 2807 EGI Taft Tower, Taft Avenue, Malate, Manila

Source: https://midtown.com.ph/contact-us