The capital accounts and profit and loss ratio of A and B are shownbelow:CapitalProfit and Loss ratioP 60,00040,000P 100,00050%50%100%AвGive the journal entries under the following cases:1. C purchases one-half interest of A for P35,000.2. B sells one-fourth of his interest to C for P12,000.3. C purchases one-half interest of both A and B for P55,000 (use twomethods)4. C invests P20,000 for a one-sixth interest in the new firm. Theagreeed new capital is p120,000.5. C invests P40,000 for a one-fourth interest in the new firm.6. C invests P35,000 for a one-fourth interest in the new firm withagreed capitalization of *135,000.7. Cinvests P35,000 for a one-fourth interest in the firm. The agreednew capital is P140,000. After the admission of C, the capital con-tributions must be made equal to the new profit and loss ratio.8. Cinvests P40,000 for a one-third interest in the firm with a totalnew capital of P150,000.

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Give the journal entries under the following cases: 1. C purchases one-half interest of A for P35,000. 2. B sells one-fourth of his interest to C for P12,000. 3. C purchases one-half interest of both A and B for P55,000 (use two methods)

Give the journal entries under the following cases: 1. C purchases one-half interest of A for P35,000. 2. B sells one-fourth of his interest to C for P12,000. 3. C purchases one-half interest of both A and B for P55,000 (use two methods)

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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