Case Study 7b - Partnerships

Case Study 7b - Partnerships

1.

General Journal Entries

Date

Particulars

Debit

Credit

1

Inventory                   

5000

Cash

5000

(To record the purchase of inventory)

2

Dep Exp. (Studio and Equipment)

33000

Allowance for Depreciation (Studio and Equipment)

33000

(To record the depreciation expense of studio and equipment)

3

Dep Exp. (Motor Vehicles)

4000

Allowance for Depreciation (Motor Vehicles)

4000

(To record the depreciation expense of motor vehicles)

4

Purchase of Building

124000

Cash

124000

(To record the purchase of building)

2.

General Journal Entries

Date

Particulars

Debit

Credit

1

Cash

440000

Capital - Mark

220000

Capital - Sandy

110000

Capital - Mandy

110000

(Mark, Sandy and Mandy contributes to form the partnership)

Calculation

Mark's Capital = Sandy's Capital + Mandy's Capital

50% Share = 25% Share + 25% Share

Mark' Capital = 110000 + 110000

Mark' Capital = 220000

3.

Non-cash assets

Accounts Receivable

29000

Inventory                   

4000

Office Equipment      

8000

Motor ...