Miguel, Neri, and Orlando are partners whose capital balances and shares in profits as of January 1, 2019, are as follows: Capital Balance P/L Ratio Miguel P10,000 30% Neri 20,000 20 Orlando 30,000 50 Pobre is being admitted into the partnership. Make the entries incidental to his admission under each of the following cases: Pobre buys one-half of the interest of Orlando for P16,000. Pobre buys one-half of the interest of Neri for P13,000. The additional amount paid is considered for asset revaluation. Pobre pays P10,000 for two-fifths of the capital of Orlando. The partnership assets are overstated. Pobre acquires one-fourth interest in the partnership paying P20,000 to Neri and Orlando. The asset revaluation is not to be recorded and capital transfers are in proportion to the capital balances of the selling partners.
Miguel, Neri, and Orlando are partners whose capital balances and shares in profits as of January 1, 2019, are as follows: Capital Balance P/L Ratio Miguel P10,000 30% Neri 20,000 20 Orlando 30,000 50 Pobre is being admitted into the partnership. Make the entries incidental to his admission under each of the following cases: Pobre buys one-half of the interest of Orlando for P16,000. Pobre buys one-half of the interest of Neri for P13,000. The additional amount paid is considered for asset revaluation. Pobre pays P10,000 for two-fifths of the capital of Orlando. The partnership assets are overstated. Pobre acquires one-fourth interest in the partnership paying P20,000 to Neri and Orlando. The asset revaluation is not to be recorded and capital transfers are in proportion to the capital balances of the selling partners.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Miguel, Neri, and Orlando are partners whose capital balances and shares in profits as of January 1, 2019, are as follows:
|
|
|
Capital Balance |
P/L Ratio |
|
|
|
Miguel |
P10,000 |
30% |
|
|
|
Neri |
20,000 |
20 |
|
|
|
Orlando |
30,000 |
50 |
|
Pobre is being admitted into the partnership. Make the entries incidental to his admission under each of the following cases:
- Pobre buys one-half of the interest of Orlando for P16,000.
- Pobre buys one-half of the interest of Neri for P13,000. The additional amount paid is considered for asset revaluation.
- Pobre pays P10,000 for two-fifths of the capital of Orlando. The partnership assets are overstated.
- Pobre acquires one-fourth interest in the partnership paying P20,000 to Neri and Orlando. The asset revaluation is not to be recorded and capital transfers are in proportion to the capital balances of the selling partners.
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