AB Partnership

Worksheet
December 31, 202A
Trial Balance Adjustment
Accounts
DEBIT CREDIT DEBIT CREDIT
Cash 200,000
Accounts Receivable 80,000
Allowance for Bad Debts 4,000 4,000
Notes Receivable 60,000
Office Supplies 20,000
Repair Supplies 30,000 25,000
Office Furniture & Equipment 70,000
Accumulated Depreciation - OFE 5,000 7,000
Repair Equipment 120,000
Accumulated Depreciation - RE 6,000 12,000
Accounts Payable 7,000
Notes Payable 10,000
A, Capital 150,000
A, Drawing 10,000
B, Capital 200,000
B, Drawing 20,000
Repair Service Income 378,000
Utilities 54,000 16,000
Salaries and Wages 96,000 14,000
760,000 760,000
Bad Debts 4,000
F Interest Receivable 300
Interest Income 300
Repair Supplies Used 25,000
Depreciation Expense - OFE 7,000
Depreciation Expense - RE 12,000
Interest Expense 100
Interest Payable 100
Utilities Payable 16,000
Salaries and Wages Payable 14,000
78,400 78,400
Net Profits Php 150,200 distributed as follows:
6% interest on beginning capital of each partner
Annual Salaries: A = 40,000; B = 40,000
Balance: equally
 AB Partnership
Worksheet
December 31, 202A
Statement of
Adjusted Trial Balance Income Statement A, Capital B, Capital
Financial Position
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT
200,000 200,000
80,000 80,000
8,000
60,000 60,000
20,000 20,000
5,000 5,000
70,000 70,000
12,000
120,000 120,000
18,000
7,000
10,000
150,000 150,000
10,000 10,000
200,000 200,000
20,000 20,000
378,000 378,000
70,000 70,000
110,000 110,000

4,000 4,000
300 300
300 300
25,000 25,000
7,000 7,000
12,000 12,000
100 100
100
16,000
14,000
813,400 813,400 228,100 378,300

21,000 9,000 12,000

80,000 40,000 40,000
49,200 24,600 24,600
378,300 378,300 10,000 223,600 20,000 276,600 555,300
213,600 256,600
223,600 223,600 276,600 276,600 555,300
 Statement of
Financial Position
CREDIT

8,000

12,000

18,000
7,000
10,000

100
16,000
14,000

85,100
470,200
555,300

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 Adjusting Entries DEBIT CREDIT
1 Bad Debts 4,000
Allowance for Bad Debts 4,000

To reflect the 10% increase in uncollectible

accounts (80,000 x .10 = 8,000)

2 Interest Receivable 300

Interest Income 300
To accrue interest for 30 days note (60,000 x .06
x 30 x 360 = 300)

3 Repair Supplies Used 25,000

Repair Supplies 25,000
To adjust the repair supplies used (30,000 -
5,000 = 25000)

4 Depreciation Expense - OFE 7,000

Accumulated Depreciation - OFE 7,000

To record the depreciation of office furnitures

and equipment (70,000 x .10 = 7,000)

Depreciation Expense - RE 12,000

Accumulated Depreciation - RE 12,000
To record the depreciation of repair equipment
(120,000 x .10 = 12,000)

5 Interest Expense 100

Interest Payable 100
To accrue for interest on note issued to supplier
(10,000 x .06 x 60 x 360 = 100)

6 Utilities Expense 16,000

Utilities Payable 16,000
To record the unpaid utilities

Salaries and Wages 14,000

Salaries and Wages Payable 14,000
To record unpaid salaries and wages
 AB Partnership
Income Statement
For the period endes December 31, 200A
Revenue:
Repair Service Income 378,000
Interest Income 300
Less: Operating Expenses
Utilities 70,000
Salaries and Wages 110,000
Depreciation Expense - OFE 7,000
Depreciation Expense - RE 12,000
Bad Debts Expense 4,000
Repair Supplies Expense 25,000
Interest Expense 100 - 228,100
NET PROFIT 150,200
 AB Partnership
Statement of Changes in Partners' Equity
December 31, 200A
TOTAL A B
Capital Balance on beginning 350,000 150,000 200,000
Less: Drawing - 30,000 - 10,000 - 20,000
Net Capital 320,000 140,000 180,000
Add: Share in Profit 150,200 73,600 76,600
Capital Balance on ending 470,200 213,600 256,600
 AB Partnership
Statement of Financial Position
As of December 31, 200A
ASSETS
Current Assets:
Cash 200,000
Accounts Receivable 80,000
Less: Allowance for Bad Debts - 8,000 72,000
Notes Receivable 60,000
Office Supplies 20,000
Interest Receivable 300
Repair Supplies 5,000
Total current assets 357,300

Noncurrent Assets:
Office Furniture & Equipment 70,000
Less: Accumulated Depreciation - OFE - 12,000 58,000
Repair Equipment 120,000
Less: Accumulated Depreciation - RE - 18,000 102,000
Total noncurrent assets 160,000
TOTAL ASSETS 517,300

LIABILITIES AND PARTNERS' EQUITY

Current liabilities:
Accounts Payable 7,000
Notes Payable 10,000
Interest Payable 100
Utilities Payable 16,000
Salaries and Wages Payable 14,000
Total Current Liabilities 47,100

A, Capital 213,600
B, Capital 256,600
Total Liabilities and Partners' Equity 517,300

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DATE ACCOUNTS AND EXPLANATION DEBIT CREDIT
Closing Entries
1) Repair Service Income 378,000
Interest Income 300
Revenue and Expense Summary 378,300
To close the credit accounts

2) Revenue and Expense Summary 228,100

Utilities 70,000
Salaries and Wages 110,000
Depreciation Expense - OFE 7,000
Depreciation Expense - RE 12,000
Bad Debts Expense 4,000
Repair Supplies Expense 25,000
Interest Expense 100
To close all the debit accounts

3) Revenue and Expense Summary 470,200

A, Capital 213,600
B, Capital 256,600
To close profit to capital

4) A, Capital 203,600
B, Capital 236,600
A, Drawing 203,600
B, Drawing 236,600
To close drawing accounts to capital accounts
 AB Partnership
POST-CLOSING TRIAL BALANCE
December 31, 200A
Cash ₱ 200,000
Accounts Receivable 80,000
Allowance for Bad Debts ₱ 8,000
Notes Receivable 60,000
Office Supplies 20,000
Interest Receivable 300
Repair Supplies 5,000
Office Furniture & Equipment 70,000
Accumulated Depreciation - OFE 12,000
Repair Equipment 120,000
Accumulated Depreciation - RE 18,000
Accounts Payable 7,000
Notes Payable 10,000
Interest Payable 100
Utilities Payable 16,000
Salaries and Wages Payable 14,000
A, Capital 213,600
B, Capital 256,600
₱ 555,300 ₱ 555,300