BC qpLAN BAKERY JOURNAL ENTRIES

Account names Debit Credit

Beg. Cash 700,000
Beg. Inventory 400,000
Building/property 500,000
Cantaros, Capital 500,000
Labonog, Capital 600,000
Paluga, Capital 400,000
Peñalver, Capital 100,000
To record the initial investment of the partnership
I. Supplies 20,000
Cash 20,000
To record purchased supplies
II. Supplies 10,000
Accounts payable 10,000
To record purchased supplies on account
III. Purchases 20,000
Cash 20,000
To record purchased inventory on cash
IV. Purchases 30,000
Accounts Payable 30,000
To record purchased inventory on account
V. Equipment 90,000
Accounts Payable 90,000
To record purchased equipment on account
VI. Furniture and Fixture 50,000
Accounts Payable 50,000
To record furniture and fixture purchased on account
VII. Cash 20,000
Sale 20,000
To record sale on cash
VIII. Accounts receivable 30,000
Sale 30,000
To record sale on account
IX. Cash 50,000
Sale 50,000
To record sale on cash
X. Accounts receivable 40,000
Sale 40,000
To record sale on account
XI. Accounts Payable 10,000
Cash 10,000
To record Payment in full of the account in number ii
 XII. Accounts payable 15,000
Cash 15,000
To record Payment of half of the account in number iv
XIII. Accounts Payable 30,000
Cash 30,000
To record Payment of 1/3 of the account in number v
XIV. Accounts Payable 60,000
Cash 60,000
To record Payment of 2/3 of the account in number v
XV. Cash 40,000
Accounts Receivable 40,000
To record Received in full, the account in number x
XVI. Salaries Expense 30,000
Cash 30,000
To record payment of salaries expense
XVII. Utilities expense 20,000
Cash 20,000
To record payment of utilities expense
XVIII. Income tax 0
Cash 0
To record income taxes
XIX. Unclassified, petty expenses 2,000
Cash 2,000
To record unclassified, petty expenses
XX. Cantaros Drawings 250,000
Cash 250,000
To record Cantaros Temporary Drawing ½ of his investment
T- ACCOUNTS LEDGER ENTRIES

ASSETS

Cash Inventory Supplies

Beg. 700,000 20,000 I. Beg. 400,000 I. 20,000
20,000 III. 400,000 II. 10,000
VII. 20,000 10,000 XI. 30,000
IX. 50,000 15,000 XII.
XV. 40,000 30,000 XIII.
60,000 XIV.
30,000 XVI.
20,000 XVII.
2,000 XIX.
250,000 XX.
810,000 457,000
353,000

Equipment Building/ property Furniture and fixture

V. 90,000 Beg. 500,000 VI. 50,000
90,000 receivable 500,000 50,000
Accounts
VIII. 30,000 40,000 XV.
x. 40,000
70,000 40,000
30,000
LIABILITIES

Accounts Payable
XI. 10,000 10,000 II.
XII. 15,000 30,000 IV.
XIII. 30,000 90,000 V.
XIV. 60,000 50,000 VI.
115,000 180,000
65,000
PARTNERS EQUITY

Cantaros, Capital Labonog, Capital Paluga, Capital

500,000 Beg. 600,000 Beg. 400,000 Beg.
4,500 End 4,500 End 4,500 End
504,500 604,500 404,500

Peñalver, Capital Cantaros Drawings

100,000 Beg. XX. 250,000
4,500 End. 250,000
104,500

EXPENSES
BC qpLAN BAKERY

Salaries Expense Utilities expense

UN-ADJUSTED TRIAL BALANCE Unclassified, petty expenses
XVI. 30,000 XVII. 20,000 XIX. 2,000
20,000 Debit Credit
2,000
30,000
Cash 353,000

Inventory 400,000

Supplies
Purchases 30,000
III. 20,000
Equipment 90,000
IV. 30,000
50,000 Building/ property 500,000

Furniture and fixture 50,000

SALES
Accounts receivable 30,000
Sales
AccountsVII.
20,000 Payable 65,000
30,000 VIII.
Cantaros,IX.
50,000 Capital 500,000
40,000 X.
Labonog, Capital 600,000
140,000
Paluga, Capital 400,000

Peñalver, Capital 100,000

Cantaros Drawings 250,000

Sales 140,000

Purchases 50,000

Salaries Expense 30,000

Utilities expense 20,000

Unclassified, petty expenses __2,000__ ________

1,805,000 1,805,000
 Partnership Profit/Loss

Sales 140,000

Less: cost of goods sold

Beg, inventory 400,000

Add: Purchases 50,000
Cost of sales 450,000

Less: ending inventory 380,000 70,000

Gross Profit: 70,000

EXPENSES

Salaries Expense 30,000

Utilities expense
Unclassified, petty expenses 20,000

TOTAL EXPENSES 2,000

52,000

Net Profit 18,000

Profit/loss share

Cantaros, Profit/Loss (18,000 x 25%) 4,500

Labonog, Profit/Loss (18,000 x 25%) 4,500

Paluga, Profit/Loss (18,000 x 25%) 4,500

Peñalver, Profit/Loss (18,000 x 25%) 4,500

TOTAL 18,000

JOURNAL ENTRY

End. Net Profit 18,000

4,500
Cantaros, Capital 4,500
Labonog, Capital 4,500
Paluga, Capital 4,500
 Peñalver, Capital

To record the division of net profit of the partnership

Kee Marc. purchases proportionate interest from Cantaros, Labonog, Paluga, and Peñalver representing
10% interest in the partnership for P400,000. The net assets of the firm as of this date approximate their
fair values.

Cantaros, Capital (1,618,000 x10% x25%) 40,450

40,450
Labonog, Capital (1,618,000 x10% x25%) 40,450
Paluga, Capital (1,618,000 x10% x25%) 40,450
161,800
Peñalver, Capital (1,618,000 x10% x25%)

Kee Marc, Capital (1,618,000 x10%)

to record the admission of Kee Marc to the partnership

Cantaros Labonog Paluga Peñalver Kee Marc Total

Capital, Beg. 504,500 604,500 404,500 104,500 1,618,000

Credit 161,800 161,800

Debit (40,450) (40,450) (40,450) (40,450) (161,800)

Capital, End 464,050 564,050 364,050 64,050 161,800 1,618,000

Partnership Liquidation

a) Collection on accounts receivable 30,000

b) Sale of inventory 300,000
c) Sale of equipment 90,000
d) Estimated liquidation expenses (3,000)
e) Cash retained for future expenses (10,000)
Net cash proceeds 407,000
Less: Carrying amount of all non-cash assets (500,000)
(30,000 Accounts receivable+ 380,000 Inventory + 90,000 Equipment)
Total loss (93,000)

Cantaros Labonog Paluga Peñalver Kee Marc Total

(23%) (23%) (23%) (23%) (10%)

Capital balance 464,050 564,050 364,050 64,050 161,800 1,618,000

Allocation of
loss
[93,000 x (23%; (21,390) (21,390) (21,390) (21,390) (9,300) (93,000)
23%;23%;23% &
10%)]

Amts. received 442,660 542,660 352,660 52,660 152,500 1,525,000

by the partners

Liquidation of the Partnership- Allocation of loss on sale journal

Cash 407,000
Loss on Sale 93,000
None Cash 500,000
To record Allocation of loss on sale

Liquidation of the Partnership- Allocation of loss on sale journal

Cantaros, Capital 21,390
Labonog, Capital 21,390
Paluga, Capital 21,390
Peñalver, Capital 21,390
Kee Marc, Capital 9,300
Loss on Sale 93,000
To record Allocation of loss on sale

Liquidation of the Partnership- payment of liabilities journal

Liabilities 65,000
Cash 65,000
To record payment of liabilities
 Liquidation of the Partnership- Distribution of Remaining Cash
Cantaros Labonog Paluga Peñalver Kee Marc Total
(23%) (23%) (23%) (23%) (10%)
Opening 159,850 159,850 159,850 159,850 69,500 695,000
Balance
Remaining Cash (159,850) (159,850) (159,850) (159,850) (69,500) (695,000)
Total 0 0 0 0 0 0

Liquidation of the Partnership- Distribution of Remaining Cash journal

Cantaros, Capital 81,190

Labonog, Capital 81,190
Paluga, Capital 81,190
Peñalver, Capital 81,190
Kee Marc, Capital 35,300
Cash 353,000
To record Distribution of Remaining Cash

Liquidation of the Partnership- Summary Allocation

Cash Non- Liabilities Cantaros Labonog Paluga Peñalver Kee Marc
Cash
Opening 353,000 500,000 (65,000) 196,190 196,190 196,190 196,190 85,300
Balance
Sell None 407,000 (500,000) (21,390) (21,390) (21,390) (21,390) (21,390)
Cash
Pay (65,000) 65,000
Liabilities
Remaining (695,000) (159,850) (159,850) (159,850) (159,850) (159,850)
Cash
Total 0 0 0 0 0 0 0 0