PARTNERSHIP F

ORMATION

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PARTNERSHIPA CONTRACT WHEREBY TWO OR MORE PERSONS BIND

THEMSELVES TO CONTRIBUTE MONEY, PROPERTY, OR INDUSTRY INTO A COMMON FUND WITH THE INTENTION OF DIVIDING THE PROFITS AMONG THEMSELVES

Article 1767 Civil Code of the Philippines

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CHARACTERISTICS OF A PARTNERSHIP

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ADVANTAGES OF A PARTNERSHIP

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DISADVANTAGES OF A PARTNERSHIP

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KINDS OF PARTN

ERSHIP

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AS TO ACTIVITY

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AS TO OBJECT

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AS TO LIABILITY OF PARTNERS

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AS TO DURATION

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AS TO LEGALITY OF EXISTENCE

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AS TO PUBLICITY

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CLASSES OF PARTN

ERS

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AS TO CONTRIBUTION

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AS TO LIABILITY

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AS TO MANAGEMENT

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OTHER CLASSIFICATIONS

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ARTICLES OF CO-PARTNERSHIP

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ARTICLES OF CO-PARTNERSHIP

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ARTICLES OF CO-PARTNERSHIP

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ARTICLES OF CO-PARTNERSHIP

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PLACE FOR REGISTRATION

REQUIREMENTS FOR REGISTRATION CERTIFICATES

ISSUEDSecurities and Exchange Commission

Articles of Co-PartnershipFilled SEC Registration Form

SEC Certificate

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PLACE FOR REGISTRATION

REQUIREMENTS FOR REGISTRATION CERTIFICATES

ISSUEDSecurities and Exchange Commission

Articles of Co-PartnershipFilled SEC Registration Form

SEC Certificate

Department of Trade and Industry

Articles of Co-PartnershipSEC Certificate

Certificate of Registration of Business name ( renewable every 5 years)

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PLACE FOR REGISTRATION

REQUIREMENTS FOR REGISTRATION CERTIFICATES

ISSUEDSecurities and Exchange Commission

Articles of Co-PartnershipFilled SEC Registration Form

SEC Certificate

Department of Trade and Industry

Articles of Co-PartnershipSEC Certificate

Certificate of Registration of Business name ( renewable every 5 years)

City or Municipal Mayor’s Office

Certificate of Registration of Business Name

Mayor’s Permit and License to Operate (renewable annually)

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PLACE FOR REGISTRATION

REQUIREMENTS FOR REGISTRATION CERTIFICATES ISSUED

Bureau of Internal Revenue

SEC RegistrationArticles of Co-Partnership

BIR Registration No.Tax identification No.Registration of books, invoices, and official receipts

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PLACE FOR REGISTRATION

REQUIREMENTS FOR REGISTRATION CERTIFICATES ISSUED

Bureau of Internal Revenue

SEC RegistrationArticles of Co-Partnership

BIR Registration No.Tax identification No.Registration of books, invoices, and official receipts

Social Security System

Filled SSS Application FormList of Employees

SSS Certificate of MembershipSSS Employee ID Number

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PLACE FOR REGISTRATION

REQUIREMENTS FOR REGISTRATION CERTIFICATES ISSUED

Bureau of Internal Revenue

SEC RegistrationArticles of Co-Partnership

BIR Registration No.Tax identification No.Registration of books, invoices, and official receipts

Social Security System

Filled SSS Application FormList of Employees

SSS Certificate of MembershipSSS Employee ID Number

Philhealth Insurance Corp.

SEC RegistrationEmployee Data Record

Philhealth Employer Number and Certificate of RegistrationPhilhealth Identification Number and member Data Record

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PLACE FOR REGISTRATION

REQUIREMENTS FOR REGISTRATION CERTIFICATES ISSUED

Bureau of Internal Revenue

SEC RegistrationArticles of Co-Partnership

BIR Registration No.Tax identification No.Registration of books, invoices, and official receipts

Social Security System

Filled SSS Application FormList of Employees

SSS Certificate of MembershipSSS Employee ID Number

Philhealth Insurance Corp.

SEC RegistrationEmployee Data Record

Philhealth Employer Number and Certificate of RegistrationPhilhealth Identification Number and member Data Record

PAG_IBIG Fund SEC RegistrationArticles of Co-Partnership

PAG-IBIG Fund Certificate of MembershipPAG-IBIG Fund Employer ID No.

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ASSETSCurrent Assets

Cash P 993,000.00 Trade and other receivables ( note1) 42,000.00 Prepaid expenses ( Note 2) 56,000.00

1,091,000.00 Non- Current Assets

Plant, property and equipment (Note 3) 585,000.00 Total assets P 1,676,000.00

LIABILITIES AND PARTNERS' EQUITYCurrent Liabilities

Trade and other payables (note 4) P 64,000.00 Partners' Equity

Marie, capital P 806,000.00 Rodario, capital 806,000.00 1,612,000.00

TOTAL LIABILITIES & PARTNERS' EQUITY P 1,676,000.00

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Unadjusted Adjusted Increase/(Decrease)Trade and other receivables* 5,000.00 8,000.00 (3,000.00) Supplies inventory 38,000.00 36,000.00 (2,000.00) Building 300,000.00 280,000.00 (20,000.00) Sewing Equipment 225,000.00 220,000.00 (5,000.00) Furniture and fixtures 82,000.00 85,000.00 3,000.00

(27,000.00)

# Trade and other receivables

Accounts receivable 50,000.00 50,000.00 Allowance for doubtfulAccounts 5,000.00 8,000.00 Net realizable value 45,000.00 42,000.00

FORMS OF INVESTMENTCASH – FACE VALUENON- CASH ASSETS – AGREED VALUE / FAIR MARKET VALUUE /

BOOK VALUESERVICES

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EXERCISE 1-4 CASE A

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DR CRCash 500,000.00 Equipment 45,000.00

Rose, capital 545,000.00 Investment of Rose

EXERCISE 1-4

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Furniture and fixtures 100,000.00 Guada, capital 100,000.00

Investment of Guada

EXERCISE 1-4

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Marie, capitalMarie invested her management expertisein the business.

EXERCISE 1-4 CASE B

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Building 1,500,000.00 Office equipment 30,000.00

Mortgage payable 300,000.00 Romy, capital 1,230,000.00

Investment of Romy

CASE B

Cash 550,000 Office equipment 220,000 Furniture and fixtures 50,000

Vic, capital 820,000 Investment of Vic

Computation:Romy, capital 1,230,000.00 Romy's interest 60%Total partners' equity 2,050,000.00 Vic' interest 40%Vic, capital 820,000.00 Vic's investment 270,000.00 Vic's additional investment 550,000.00

EXERCISE 1-4

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CASE CDEBIT CREDIT

Cash 205,000.00 Accounts receivable 95,000.00 Allowance for doubtful accounts 10,000.00 Office supplies 12,000.00 Office equipment 320,000.00 Furniture and fixtures 140,000.00 Rosario, capital 320,000.00 Guadalup, capital 225,000.00 Maria, capital 217,000.00

772,000.00 772,000.00

RGM PARTNERSHIPSTATEMENT OF FINANCIAL POSITION

JULY 4, 2012

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ASSETS

Current AssetsCash P 205,000.00 Trade and other receivables (Note 1) 85,000.00 Office supplies 12,000.00

Total 302,000.00 Non-current assets

Plant property and eequipment note 2) 460,000.00 Total Assets P 762,000.00

PARTNERS' EQUITYRosario, capital P 320,000.00 Guadalupe, capital 225,000.00 Maria, capital 217,000.00

P 762,000.00