MOUNTAIN VIEW COLLEGE
SCHOOL OF BUSINESS AND ACCOUNTANCY
ACCOUNTING FOR SPECIAL TRANSACTIONS
WORKSHEET#1: PARTNERSHIP FORMATION
INSTRUCTIONS: Answers and all necessary solutions to the requirements must be written in a clean
sheet of paper (all in good form). Submission format must be image file (png or
jpeg).
PROBLEM #1
The following items are being invested by A and B to form AB Partnership:
Agreed Values
Investment by A
Investment by B
Cash
P 120,000
P 120,000
Inventory
100,000
–
Land
–
240,000
Building
–
480,000
Equipment
240,000
–
Totals
P 460,000
P 840,000
–
240,000
P 460,000
P 600,000
