Accounting for Partnership - Practice

2. Mont, Meaw, and Maew joined to form Saam Mhum Partnership, the profit and loss to be
shared equally. The partnership agreement described that on the death of any partner, the
partnership not to be dissolved. The average profit sharing to the dead partner will be
calculated from the beginning date to the date of death, using the last 3 years average net
profit. Mont died on March 31, 2014. He had capital balance at January 1, 2014 of 80,000
baht. Net profit of the partnership for the last 3 years were:
25x1 48,000 baht
25x2 55,000 baht
25x3 50,000 baht
Total 153,000 Baht

The partnership would make the capital repayment to Mont’s heir on June 30, 25x4

Requirement 1. Calculate the average profit sharing to Mont
2. Calculate the payable to Mont’s heir
3. Make the entries regarding Mont’s death during March 31-December 1,

25x4

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3. Gai, Gung and Pla were partners with capital of 300,000 baht, 300,000 baht and 400,000 baht

respectively. The profit and loss to be shared by the capital ratios. The partnership agreement

described that on the death of a partner, the partnership not to be dissolved. The last 5 years average

profit to be calculated, assets and liabilities to be adjusted to the real values. The total profit of the last

5 years was 600,000 baht. On September 30, Pla died. Gai and Gung agreed to make the adjusting

entries of assets and liabilities before making capital repayment of cash to Pla’s heir as follow:

1. Transfer account payables to bad debt 500 Baht

2. Deferred office rental 3,000 Baht

3. Purchase office material in credit, not yet booking 1,000 Baht

4. Increase Office Equipment - Accumulated 2,000 Baht

Depreciation

Requirement 1. Calculate the average profit sharing to Pla

2. Calculate the amount of capital repayment to Pla’s heir

3. Make the adjusting entries before Pla’s death and capital repayment

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4. Ped, Poo and Pui were partners. The profit and loss to be shared equally. All partners had life
insurance with total compensation of 150,000 baht, the premium and compensation was liable and
received by the partnership. The partnership agreement described that on the death of any partner,
the partnership not to be dissolved, no book closing required but to continue the operation as usual.
The average profit sharing to the dead partner based on net profit of the last 3 year. Provision of
goodwill to the dead partner at 10% of capital after the profit sharing and draws. The capital
repayment of cash to the heir should be done accordingly. On June 30, 2014, Poo died. He had the
capital at January 1, 2014 of 70,000 baht, and draws during 2014 of 10,00 baht. Net profit of the
last 3 years were:
25x1 110,000 baht
25x2 150,000 baht
25x3 100,000 baht

Requirement 1. Calculate the amount to be paid to Poo’s heir
2. Make the relevant entries in the general journal

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Practice Chapter 8

1. Pat, Nuj and Nok joined as partners to form Sam Saaw Partnership. They shared the profit and loss at

1 : 1 : 2. The trial balance before the date of dissolution, December 31, 25x1 was as follow:

Cash 6,400

Other Assets 96,000

Account Payables 8,400

Note Payable 14,000

Capital – Pat 20,000

Capital – Nuj 20,000

Capital – Nok 40,000

102,400 102,400

For liquidation on June 1, 25x1, the realisation of other assets was 100,000 baht

Requirements 1. Prepare the statement of partnership liquidation
2. Make the entries of liquidation in the general journal

Sam Saw Partnership

statement of partnership liquidation

As at 1 June 25x1

Assets Equities

List Cash Other Liabilities Pat Nui Nok
Assets
Profit ratio 1/4 2/4
ยอดก่อนการชาระบญั ชี 1/4 20,000 40,000
จาหน่ายสินทรัพยอ์ ่ืนแบง่ กาไร 1,000 2,000
คงเหลือ 6,400 96,000 22,400 20,000 21,000 42,000
จ่ายชาระหน้ีสิน
คงเหลือ 100,000 (-96,000) 1,000 21,000 42,000
จ่ายคืนทุน (21,000) (42,000)
106,400 22,400 21,000

(22,400) (22,400)

84,000 21,000

(84,000) (21,000)

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2. Toom, Toi and Tangmo were partners. They shared the profit and loss at 2 : 1 : 3. They agreed to
dissolve the partnership. The statement of financial position before the liquidation was as follow:

Toom Toi Tangmo Partnership
Statement of Financial Position

As of December 31, 2013

Assets Liquidities and Partners’ Equity
Cash
Account Receivables 42,500 Account Payables 540,900
Inventories 16,800
Car 37,600 Capital - Toom 890,000
Building (net) 465,000
Land 1,390,000 Capital – Toi 597,500
980,000
Total Assets 2,931,900 Capital – Tangmo 903,500

Total Liabilities and Partners’ Equity 2,931,900

For the liquidation on January 1, 2014, the date of dissolution, details of sale of other assets were as

follow:

Receivables Collected 16,200 baht

Sale of Inventories 27,200 baht

Sale of Car 386,000 baht

Sale of Building 1,200,000 baht

Sale of Land 1,380,000 baht

After sale of other assets and paying liabilities, the partnership made capital repayment of cash to the

partners.

Requirements 1. Calculate the sharing of profit and loss from the sale of other assets
2. Prepare the statement of partnership liquidation
3. Make the entries of liquidation in the general journal

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1. Calculate the sharing of profit and loss from the sale of other assets
Assets

Total
2. Prepare the statement of partnership liquidation

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3. Make the entries of liquidation in the general journal Page…..…..
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3. Nong and Nan were partners. The profit and loss sharing ratios were 5 : 4. The statement of financial
position of the partnership was

Nong Nan Partnership
Statement of Financial Position

As of December 31, 2013

Assets Liquidities and Partners’ Equity
Cash
Account Receivables 11,500 Account Payables 129,800
Inventories 50,000
Office Equipment 84,700 Note Payable 300,000
Building 37,000
Land 678,000 Loan - Nan 70,000
469,000
1,330,200 Capital – Nong 530,400

Capital – Nan 300,000

1,330,200

The two partners agreed to dissolve the partnership on January 31, 2014. Realisation of other assets
was 598,7000 baht. In case any partner had debit balance in capital and also loan account, the partner
might transfer the loan to absorb the debit balance in capital. Detail of the sale of other assets were:

Receivables Collected 48,400 baht
Sale of Inventories 40,000 baht
Sale of Office Equipment 20,300 baht
Sale of Building and Land 490,000 baht

Requirements 1. Calculate the sharing of profit and loss from the sale of other assets
2. Prepare the statement of partnership liquidation
3. Make the entries of liquidation in the general journal

Accounting for Partnership Page 107

1. Calculate the sharing of profit and loss from the sale of other assets
Assets

Total

2. Prepare the statement of partnership liquidation

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3. Make the entries of liquidation in the general journal Page…..…..
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4. Joom, Eed and Add were partners and shared the profit and loss at 3 : 2 : 2. The statement of
financial position as of April 1, 2014 before the liquidation was:

Joom Eed Add Partnership
Statement of Financial Position

As of April 1, 25x1

Assets Liquidities and Partners’ Equity

Cash 5,000 Account Payables 244,400
Other Assets 700,000
Capital – Joom 173,000
705,000
Capital – Eed 156,600

Capital – Add 131,000

705,000

For the liquidation on April 30, 2014. Realisation of other assets was 203,000 baht. If any partner
had debit balance in capital, the partner might contribute more cash to the partnership. If the partner
was insolvent, all partners should be liable to the remaining liabilities.

Requirements 1. Calculate the sharing of profit and loss from the sale of other assets
2. Prepare the statement of partnership liquidation as of April 30, 25x1
3. Make the entries of liquidation in the general journal

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1. Calculate the sharing of profit and loss from the sale of other assets
2. Prepare the statement of partnership liquidation

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3. Make the entries of liquidation in the general journal Page…..…..
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5. Duan, Tiw, Rin formed a partnership. They agreed to dissolve the entity on March 18, 2014. The

trial balance of the partnership as of March 1, 2014 before the liquidation was:

Cash 9,200

Other Assets 129,000

Account Payables 18,000

Capital – Duan 39,400

Capital – Tiw 16,600

Capital – Rin 64,200

138,200 138,200

The partners shared the profit and loss at 3 : 2 : 4. Realisation of other assets was 37,200 baht.
After paying liabilities, the partnership made partial capital repayment to the partners. Later, a partner
with debit balance in capital could not contribute more cash to cover the deficit.

Requirements 1. Calculate the sharing of profit and loss from the sale of other assets
2. Prepare the statement of partnership liquidation as of March 18, 2014
3. Make the entries of liquidation in the general journal

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1. Calculate the sharing of profit and loss from the sale of other assets
2. Prepare the statement of partnership liquidation

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3. Make the entries of liquidation in the general journal Page…..…..
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6. Oh, Eh and Ann were partners, they equally shared the profit and loss. The partnership agreed to
dissolve. The accounts of Saam Or Partnership as of January 1, 2014 were as follow:

Cash 3,000
Other Assets 49,000
Account Payables 12,500
Capital – Oh 10,000
Capital – Eh 11,900
Capital – Ann 17,600

For the liquidation on January 15, 2014, other assets sold for 13,300 baht. The partners with capital
deficit had compensated their debit balance in capital as follow:

Oh could compensate 50% of debit balance in capital
Eh could not compensate at all
Ann could compensate 100% of the debit balance in capital

Requirements 1. Calculate the sharing of profit and loss from the sale of other assets
2. Prepare the statement of partnership
3. Make the entries of liquidation in the general journal

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1. Calculate the sharing of profit and loss from the sale of other assets
2. Prepare the statement of partnership liquidation

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3. Make the entries of liquidation in the general journal Page…..…..
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7. Ohn, Whan and Aom were partners, they shared the profit and loss at 2 : 3 : 3. The trial balance as of
June 1, 2014 before the liquidation was:

Cash 9,300 16,700
Other Assets 375,000 108,500
Account Payables 136,500
Capital – Ohn 384,300 122,600
Capital – Whan 384,300
Capital – Aom

During the liquidation, the partners sold the other assets – arranged into 3 installments:

June Other assets, with book value of 129,000 baht, sold for 86,600 baht
July Other assets, with book value of 123,000 baht, sold for 69,000 baht
August The remaining other assets sold for 69,600 baht

The partnership would make capital repayment by installment after payment of liabilities.

Requirements 1. Calculate the sharing of profit and loss from the sale of other assets
2. Calculate the installments
3. Prepare the statement of partnership during June 1 – August 31, 2014
4. Make the entries of liquidation in the general journal

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1. Calculate the sharing of profit and loss from the sale of other assets

Item Book Value Received cash Less from

Other Assets from sale sales

2. Calculate the installments

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8. Som, Oye and Lek were partners, they shared the profit and loss at 1 : 1 : 3. The statement of
financial position before the liquidation as of August 31, 2014 was:

Oye Som Lek Partnership
Statement of Financial Position

As of August 31, 2014

Assets Liquidities and Partners’ Equity

Cash 41,900 Account Payables 89,100
Other Assets 614,500
Capital – Som 163,300
656,400
Capital – Oye 182,000

Capital – Lek 222,000

656,400

During the liquidation, the partners agreed to sell other assets by installment, with the following
details:

Month Book Value Realisation
September 103,700.- 26,900.-
October 286,300.- 177,000.-
November 224,500.- 149,300.-

The partnership would make capital repayment by installment after paying all liabilities.

Requirements 1. Calculate the sharing of profit and loss from the sale of other assets
2. Calculate the installments
3. Prepare the statement of partnership during September 1 – November 30,

25x1
4. Make the entries of liquidation in the general journal

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1. Calculate the sharing of profit and loss from the sale of other assets

period Book Value of Cash from ผลขาดทนุ จากการ รายละเอยี ดการแบ่งขาดทนุ ให้หุ้นส่วน
Other Assets Sales จาหน่ายสินทรัพย์อ่นื ส้ม (1/5) อ้อย (1/5) เล็ก (3/5)
26,900 15,360 15,360 46,080
1 103,700 177,000 76,800 21,860 21,860 65,580
149,300 109,300 15,040 15,040 45,120
2 286,300 353,200 75,200 52,260 52,260 156,780
261,300
3 224,500

614,500

รายการ ส้ม อ้อย เลก็
อตั ราส่วนแบ่งกาไรขาดทนุ 1/5 1/5 3/5
ยอดก่อนจ่ายคืนทุน 126,080
หัก ผลขาดทุน สมมติสินทรพั ยอ์ ่ืน 144,780 110,340
(44,900) (44,900) (134,700)
224,500 บาท จาหน่ายไม่ได้
81,180 99,880 (24,360)
หกั สมมติไม่สามารถชดใชย้ อดทุนเดบิตได้ (12,180) (12,180) 24,360
เงนิ จ่ายคืนทนุ งวดท่ี 1 บางส่วน 69,000 87,700

Accounting for Partnership Page 124

2) Calculate the installments

หา้ งหุน้ ส่วนสม้ ออ้ ย เลก็

งบแสดงการชาระบญั ชี

วนั ที่ 31 ธนั วาคม 2550

รายการ สินทรพั ย์ หนี้สิน ทุนของผ้เู ป็นห้นุ ส่วน
อตั ราส่วนแบง่ กาไรขาดทุน เงินสด สินทรพั ยอ์ ่ืน ส้ม อ้อย เลก็
ยอดก่อนการชาระบญั ชี 1/5 1/5 3/9
จาหน่ายสินทรัพยอ์ ื่นแบ่ง 41,900 614,500 89,100 163,300 182,000 222,000
ขาดทนุ งวดท่ี 1 26,900 (103,700) (15,360) (15,360) (46,080)

จ่ายชาระหน้ีสิน 68,800 510,800 89,100 147,940 166,640 175,920
(68,800) (68,800)
จาหน่ายสินทรัพยอ์ ื่นแบง่ 510,800 20,300 147,940 166,640 175,920
ขาดทุน งวดที่ 2 177,000 (286,300) (21,860) (21,860) (65,580)

ชาระหน้ีสิน 177,000 224,500 20,300 126,080 144,780 110,340
(20,300) 224,500 (20,300)
จ่ายคืนทนุ งวดท่ี 1 (งบ 156,700
ประกอบ) (156,700) 126,080 144,780 110,340
(69,000) (87,700)
จาหน่ายสินทรัพยอ์ ื่นแบ่ง
ขาดทุน งวดท่ี 3 149,300 224,500 57,080 57,080 110,340
(224,500) (15,040) (15,040) (45,120)
จ่ายคืนทุนใหห้ ุน้ ส่วน
149,300 42,040 42,040 65,220
(-149,300) (42,040) (42,040) (65,220)

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Practice A/C for Partnership

Mini English Program
A business entity can be formed in several formats such as a sole
proprietorship – a small business with one owner, easy to form but with limitations
i.e. small capital, business expansion is difficult, lack of competent personnel.
These may cease the operation of the entity. Formation as partnership shall solve
the aforesaid problems. A partnership is larger than a sole proprietorship, having 2
investors or more called partners. The operation of a partnership shall comply with
relevant laws such as the Civil and Commercial Code, the Revenue Code, the
Accounting Act B.E.2543, and Thai Accounting Standards, etc.

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