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Question - Gogola and Paglinawan have just formed a partnership. Gogola contributed cash of P1,260,000 and computer equipment that cost P540,000. The fair value of the computer is P360,000. Gogola has notes payable on the computer of P120,000 to be assumed by the partnership. Gogola is to have 60% capital interest in the partnership. Paglinawan contributed only P900,000. The partners agreed to share profit and loss equally.
Required -
1. Prepare Journal Entry to record Gogola and Paglinawan initial investment
2. Compute for Gogola's additional investment or (withdrawal) knowing he should have 60% capital interest in the partnership.
3. Prepare the Statement of Financial Position as at the date of formation of the partnership.
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