1. A& B formed a Professional Partnership. sharing of Profits,Losses and Capital is A 1/3 ,B 2/3 , Total capital P1,500,000
2. A& B formed a Trading Partnership, sharing of Profits , Losses and capital A 60-B40 Total capital 2,000,000
3. A&B formed a Merchandising business, sharing of profits and capital A55% B45%, total capital 3 Million

REQUIREMENTS:

Prepare balance sheet

current asset 140% of A's capital ,non current asset 120% of B capital

Current liability 60%of A capital , Non current liability 40% of B capital

DISTRIBUTION:

# 1. Current asset at least 5 items with contra asset account.

# 2. Non current asset at least 2 items tangible asset with depreciation, and 2 items of intangible asset with amortization.

# 3. Current liability 5 items and Non current liability 2 items.

Difference in equity or residual value should be divided based on their capital ratio.*