A Sole Proprietor and an Individual with No Business Form a Partnership On Apr. 8, 2012,...

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A Sole Proprietor and an Individual with No Business Form a Partnership On Apr. 8, 2012, Pascua who has her own retail business and Dela Cruz, decided to form a partnership wherein they will divide profits in the ratio of 40:60, respectively. The statement of financial position of Pascua is as follows: Pascua Marketing Statement of Financial Position April 8, 2012 Assets -Cash Accounts Receivable. Less: Allowance for Uncollectible Accounts Inventory Equipment Less: Accumulated Depreciation Total Assets Liabilities and Capital Accounts Payable. Pascua, Capital Total Liabilities and Capital P160,000 16,000 P 50,000 10,000 P 4,000 144,000 200,000 40,000 P388,000 P 36,000 352,000 P388,000 Conditions agreed upon before the formation of the partnership: a. The accounts receivable of Pascua is estimated to be 70% realizable. b. The accumulated depreciation of the equipment will be increased by P10,000. c. The accounts payable will be assumed by the partnership. d. The capital of the partnership is based on the adjusted capital balance of Pascua. Dela Cruz is to contribute cash in order to make the partner's capital balances proportionate to the profit and loss ratio. Required: 1. Prepare the necessary journal entries in the books of Pascua. 2. Prepare the opening journal entries in the books of the partnership. A Sole Proprietor and an Individual with No Business Form a Partnership On Apr. 8, 2012, Pascua who has her own retail business and Dela Cruz, decided to form a partnership wherein they will divide profits in the ratio of 40:60, respectively. The statement of financial position of Pascua is as follows: Pascua Marketing Statement of Financial Position April 8, 2012 Assets -Cash Accounts Receivable. Less: Allowance for Uncollectible Accounts Inventory Equipment Less: Accumulated Depreciation Total Assets Liabilities and Capital Accounts Payable. Pascua, Capital Total Liabilities and Capital P160,000 16,000 P 50,000 10,000 P 4,000 144,000 200,000 40,000 P388,000 P 36,000 352,000 P388,000 Conditions agreed upon before the formation of the partnership: a. The accounts receivable of Pascua is estimated to be 70% realizable. b. The accumulated depreciation of the equipment will be increased by P10,000. c. The accounts payable will be assumed by the partnership. d. The capital of the partnership is based on the adjusted capital balance of Pascua. Dela Cruz is to contribute cash in order to make the partner's capital balances proportionate to the profit and loss ratio. Required: 1. Prepare the necessary journal entries in the books of Pascua. 2. Prepare the opening journal entries in the books of the partnership.