#1 Admission by Purchase of InterestThe capital accounts of the Maniquiz and Monte Partnership on Sept 30, 2018 were:Maniquiz Capital (75% Profit Percentage)Monte, Capital (25% profit percentage)TotalP 140,00056,000P 196,000On Oct 1. Galang was admitted to a 35% interest in the partnership when he purchased35% of each existing partner's capital for P 100,000, paid directly to Maniquez andMonte.Required:Determine the capital balances of Maniquiz, Monte and Galang after Galang'sadmission to the partnership.# 2 Admission by purchase of Interest and Investment of AssetsThe capital accounts of Loida Cardenas and Cristina San Jose have balances of P150,000 and P 110,000 respectively. Daria Labalan and Helen Magada are to beadmitted to the partnership. Labalan buys one-fifth of Cardenas interest for P 35,000and one fourth of San Jose's interest for P 25,000. Magada contributes P 70,000 cashto the partnership, for which she is to receive an ownership equity of P 70,000.Required:1. Journalize the entries to record the admission of Labalan and Magada.2. What are the capital balances of each partner after the admission of the newpartners?# 3 Admission by investment of assetsPartners Gonzaga and Magada have capital balances of P 30,000 and P 20,000respectively, and they share profits and losses in a 3:1 ratio.Required: Prepared the journal entries to record the admission of Padilla undereach of the following conditions:1. Padilla invested P 30,000 for a one fourth interest in net assets, total partnershipcapital after Padilla's admission will be P 80,000.2. Padilla invested P 30,000 of which P 10,000 is a bonus to Gonzaga and Magada. Inconjunction with the admission of Padilla, the carrying amount of the inventories isincreased by P 16,000. Padilla's capital account is credited for P 20,000.

Galangs' partnership Interest in Maniquizs' capital=Maniquizs' capital × Galangs'…

# 1 Admission by Purchase of Interest The capital accounts of the Maniquiz and Monte Partnership on Sept 30, 2018 were: Maniquiz Capital (75% Profit Percentage) Monte, Capital (25% profit percentage) Total P 140,000 56,000 P 196,000 On Oct 1. Galang was admitted to a 35% interest in the partnership when he purchased 35% of each existing partner's capital for P 100,000, paid directly to Maniquez and Monte. Required: Determine the capital balances of Maniquiz, Monte and Galang after Galang's admission to the partnership.

# 1 Admission by Purchase of Interest The capital accounts of the Maniquiz and Monte Partnership on Sept 30, 2018 were: Maniquiz Capital (75% Profit Percentage) Monte, Capital (25% profit percentage) Total P 140,000 56,000 P 196,000 On Oct 1. Galang was admitted to a 35% interest in the partnership when he purchased 35% of each existing partner's capital for P 100,000, paid directly to Maniquez and Monte. Required: Determine the capital balances of Maniquiz, Monte and Galang after Galang's admission to the partnership.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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