PROBLEM 1 Melvin Tan Jr. and Edgar Esparaguera are partners who have capital balances and profit and loss ratio to be shared as follows: Capital Balances P350,000 P400,000 P/L Ratio 3/5 M. Tan Jr. 2/15 E. Esparaguera Mr. Wilfredo Carreon was admitted in the partnership by buying 2 of the interest of Esparaguera for P300,000. Required: Prepare a journal entry to record the admission of Mr. Carreon in the partnership.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
PROBLEM 1
Melvin Tan Jr. and Edgar Esparaguera are partners who have capital balances and profit and loss ratio to be shared
as follows:
P/L Ratio
Capital Balances
P350,000
P400,000
3/5
М. Tan Jr.
E. Esparaguera
2/15
Mr. Wilfredo Carreon was admitted in the partnership by buying 2 of the interest of Esparaguera for P300,000.
Required: Prepare a journal entry to record the admission of Mr. Carreon in the partnership.
Solution:
Transcribed Image Text:PROBLEM 1 Melvin Tan Jr. and Edgar Esparaguera are partners who have capital balances and profit and loss ratio to be shared as follows: P/L Ratio Capital Balances P350,000 P400,000 3/5 М. Tan Jr. E. Esparaguera 2/15 Mr. Wilfredo Carreon was admitted in the partnership by buying 2 of the interest of Esparaguera for P300,000. Required: Prepare a journal entry to record the admission of Mr. Carreon in the partnership. Solution:
PROBLEM 2
lan Abuzo and Charles Edulan were partners who shared profits and losses in the ratio of 1:3. Their respective
capital balances were as follows:
Abuzo - P250,000
Edulan - P300,000
Evangeline Jamili joins the partnership by buying % interest from Abuzo.
Required: Answer the following questions:
1. How much is the book value of the interest purchased by Jamili.
Answer:
Transcribed Image Text:PROBLEM 2 lan Abuzo and Charles Edulan were partners who shared profits and losses in the ratio of 1:3. Their respective capital balances were as follows: Abuzo - P250,000 Edulan - P300,000 Evangeline Jamili joins the partnership by buying % interest from Abuzo. Required: Answer the following questions: 1. How much is the book value of the interest purchased by Jamili. Answer:
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Partnership Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education