Exercise 1. 4There was a net income of P200,000 for the year, to be distributed between Partner Aand Partner B on an agreed equal sharing.Journalize the income distribution:(a) Using the Capital account only;(b) Using the Drawing account and the Capital account.Exercise 2. 5There was a net loss of P150,000 for the year, to be distributed between Partner C andPartner D on an agreed equal sharing.Journalize the income distribution:(a) Using the Capital account only;(b) Using the Drawing account and the Capital account. On Oct. 31, 2019, Apalisoc and Tuddao agreed to combine their proprietorships as a3partnership. Their statements of financial position are as follows:Apalisoc's BusinessTuddao's BusinessВokCurrentВookCurrentAssetsValueMarket ValueValueMarketValueP 37,000P 37,000P 80,000P 80,00080,000340,000535,000CashAccounts Receivable (net)InventoryProperty and Equipment (net)220,000510,000202,000460,0001,235,00063,000351,0001,218,000574,000P1,985,000P1,934,000 P1,035,000P1,068,000Total AssetsLiabilities and CapitalP 236,000P 91,000P 236,00022,000P91,000Accounts PayableAccrued ExpensesNotes PayableApalisoc, CapitalTuddao, CapitalTotal Liabilities & Capital22,000750,00014,00014,000750,000977,000930,000P1,985,000P1,934,000 P1,035,000P1,068,000Required:1. Record the partnership formation.2. Prepare the partnership's statement of financial position as at Oct. 31, 2019.

Capital Account-: In accountancy, a capital account is made to maintain the partner's contributions…

There was a net income of P200,000 for the year, to be distributed between Partner A and Partner B on an agreed equal sharing. Journalize the income distribution: (a) Using the Capital account only; (b) Using the Drawing account and the Capital account.

There was a net income of P200,000 for the year, to be distributed between Partner A and Partner B on an agreed equal sharing. Journalize the income distribution: (a) Using the Capital account only; (b) Using the Drawing account and the Capital account.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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