A sole proprietor and an Individual with No business Form a Partnership On Apr. 8, 2020, Tolen tino who has her own retail business and Tan, decided to form a partnership wherein they will divide...

Extracted text: A sole proprietor and an Individual with No business Form a Partnership On Apr. 8, 2020, Tolen tino who has her own retail business and Tan, decided to form a partnership wherein they will divide profits in the ratio of 40:60, respectively. The statement of financial position of Tolentino is as follows: Tolentino Marketing Statement of Financial Position April 8, 2020 A ssets Cash Accounts Receivable Less: Allowance for Uncollectible Accounts P 4,000 P 160,000 16,000 144,000 Inventory Equipment Less: Accumulated Depreciation Total Assets 200,000 P 50,000 10,000 40,000 P388,000 Liabilities and Capital Accounts Payable Tolentino, Capital Total Liabilities and Capital P 36,000 352,000 P388,000 Conditions agreed upon before the formation of the partnership: a. The accoun ts receivable of Tolentino is estimated to be 70% realizable b. The accumulated depreciation of the equipment will be increased by P10,000 c. The accounts payable will be assumed by the partnership. d. The capital of the partnership is based on the adjusted capital balan ce of Tolen tino. Tan is to contribute cash in order to make the partner's capital balan ces proportion ate to the profit and loss ratio. Required: 1. Prepare the necessary journal entries in the books of Tolen tino. 2. Prepare the opening journal entries in the books of the partnership.