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# 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
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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#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. # 2 Admission by purchase of Interest and Investment of Assets The capital accounts of Loida Cardenas and Cristina San Jose have balances of P 150,000 and P 110,000 respectively. Daria Labalan and Helen Magada are to be admitted to the partnership. Labalan buys one-fifth of Cardenas interest for P 35,000 and one fourth of San Jose's interest for P 25,000. Magada contributes P 70,000 cash to 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 new partners? # 3 Admission by investment of assets Partners Gonzaga and Magada have capital balances of P 30,000 and P 20,000 respectively, and they share profits and losses in a 3:1 ratio. Required: Prepared the journal entries to record the admission of Padilla under each of the following conditions: 1. Padilla invested P 30,000 for a one fourth interest in net assets, total partnership capital 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. In conjunction with the admission of Padilla, the carrying amount of the inventories is increased by P 16,000. Padilla's capital account is credited for P 20,000.
Transcribed Image Text:#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. # 2 Admission by purchase of Interest and Investment of Assets The capital accounts of Loida Cardenas and Cristina San Jose have balances of P 150,000 and P 110,000 respectively. Daria Labalan and Helen Magada are to be admitted to the partnership. Labalan buys one-fifth of Cardenas interest for P 35,000 and one fourth of San Jose's interest for P 25,000. Magada contributes P 70,000 cash to 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 new partners? # 3 Admission by investment of assets Partners Gonzaga and Magada have capital balances of P 30,000 and P 20,000 respectively, and they share profits and losses in a 3:1 ratio. Required: Prepared the journal entries to record the admission of Padilla under each of the following conditions: 1. Padilla invested P 30,000 for a one fourth interest in net assets, total partnership capital 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. In conjunction with the admission of Padilla, the carrying amount of the inventories is increased by P 16,000. Padilla's capital account is credited for P 20,000.
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