Allyna and Allysa are partners with capital balances of P 480,000 and P 240,000. Their profit and loss agreement is 75% and 25%, respectively. They agree to admit Allen as a partner of firm. Give the required journal entries to record the admission of Allen under each of the following independent cases: Allen purchases 25% interest in the firm. Allen pays the partners P 180,000 which is divided between Allyna and Allysa in proportion to the equities given up. 1. Allen purchases a 1/3 interest in the fim. Allen pays the partners P 360,000. Asset revaluation is undertaken before Allen's admission so that his 1/3 interest will be equal to the amount of his payment. 3. Allen invests P 360,000 for a 25% interest in the firm. Asset revaluation is recorded on the firm books prior to Allen's admission. 4. Allen invests P 360,000 for a % interest in the firm. Allyna and Allysa transfer part of their capital to Allen as bonus.

Allyna and Allysa are partners with capital balances of P 480,000 and P 240,000. Their profit and loss agreement is 75% and 25%, respectively. They agree to admit Allen as a partner of firm. Give the required journal entries to record the admission of Allen under each of the following independent cases: Allen purchases 25% interest in the firm. Allen pays the partners P 180,000 which is divided between Allyna and Allysa in proportion to the equities given up. 1. Allen purchases a 1/3 interest in the fim. Allen pays the partners P 360,000. Asset revaluation is undertaken before Allen's admission so that his 1/3 interest will be equal to the amount of his payment. 3. Allen invests P 360,000 for a 25% interest in the firm. Asset revaluation is recorded on the firm books prior to Allen's admission. 4. Allen invests P 360,000 for a % interest in the firm. Allyna and Allysa transfer part of their capital to Allen as bonus.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 2BD

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Question

Allyna and Allysa are partners with capital balances of P 480,000 and P 240,000. Their
profit and loss agreement is 75% and 25%, respectively. They agree to admit Allen as a
partner of firm.
Give the required journal entries to record the admission of Allen under each of the
following independent cases:
Allen purchases 25% interest in the firm. Allen pays the partners P 180,000 which
Is divided between Allyna and Allysa in proportion to the equities given up.
1.
2.
Allen purchases a 1/3 interest in the fim. Allen pays the partners P 360,000.
Asset revaluation is undertaken before Allen's admission so that his 1/3 interest
will be equal to the amount of his payment.
Allen invests P 360,000 for a 25% interest in the firm. Asset revaluation is
recorded on the firm books prior to Allen's admission.
3.
Allen invests P 360,000 for a % interest in the firm. Allyna and Allysa transfer part
of their capital to Allen as bonus.
4.
5.
Allen invests P 480,000 in the firm. Bonus of P 120,000 is considered to partners
Allyna and Allysa.
6.
Allen invests P 480,000 in the firm with P 20,000 bonus allowed to Allysa and
Allyna upon his admission.
7.
Allen invests P 300,000 for a % interest in the firm. Total capital of the new
partnership is P 1.020,000.
8.
Allen invests P 330,000 for a 25% interest in the firm. The total firm capital after
his admission is P 1,320,000.
9.
Allen invests P 288,000 for a 1/3 interest in the firm. The total firm capital after his
admission is P 1,008,000.
10. Allen invests sufficient cash for a 1/5 interest in the firm.

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4. Allen invests P 360,000 for a ½ interest in the firm. Allyna and Allysa transfer part of their capital to Allen as bonus.

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