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: 1. 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. 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. 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. 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.

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: 1. 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. 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. 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. 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.

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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