Admission by Purchase of Interest or Investment of AssetsCastro and Falceso are partners who share profits and losses in a ratio of 2:3, respectively, and have thefollowing capital balances on Sept. 30, 2020: Castro, Capital, P100,000 Cr. and Falceso, Capital, P150,000Cr. The partners agreed to admit Garachico to the partnership.wwwwRequired: Calculate the capital balances of each partner after the admission of Garachico, assuming thatbonuses are recorded when appropriate for each of the following assumptions:1. Garachicho paid Castro P50,000 for 40% of his interest.2. Garachico invested P50,000 for a one-sixth interest in the partnership.3. Garachico invested P50,000 for a 25% interest in the partnership.4. Garachico invested P50,000 for a 15% interest in the partnership. Admission by Purchase of Interest or Investment of AssetsDolores Aguilar, Işolde Sustrina, and Beth Bigalbal are partners in Cavite Realty Company. Their capitalbalances as at July 31, 2019, are as follows:Aguilar, CapitalSustrina, CapitalBigalbal, Capital450,000150,000300,000Each partner has agreed to admit Nelia Pascual to the partnership.Required:Prepare the entries to record Pascual's admission to or Aguilar's withdrawal from the partnership undereach of the following conditions:a. Pascual paid Aguilar P125,000 for 20% of Aguilar's interest in the partnership.b. Pascual invested P200,000 cash in the partnership and received an interest equal to her investment.c. Pascual invested P300,000 cash in the partnership for a 20% interest in the business. A bonus is to berecorded for the original partners on the basis of their capital balances.d. Pascual invested P300,000 cash in the partnership for a 40% interest in the business. The originalpartners gave Pascual a bonus according to the ratio of their capital balances on July 31, 2019.e. Aguilar withdrew from the partnership, taking P525,000. The excess of withdrawn assets overAguilar's partnership interest is distributed according to the balances of the Capital accounts.f. Aguilar withdrew by selling her interest directly to Pascual for P600,000.

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Required: Calculate the capital balances of each partner after the admission of Garachico, assuming that bonuses are recorded when appropriate for each of the following assumptions: 1. Garachicho paid Castro P50,000 for 40% of his interest. 2. Garachico invested P50,000 for a one-sixth interest in the partnership. 3. Garachico invested P50,000 for a 25% interest in the partnership.

Required: Calculate the capital balances of each partner after the admission of Garachico, assuming that bonuses are recorded when appropriate for each of the following assumptions: 1. Garachicho paid Castro P50,000 for 40% of his interest. 2. Garachico invested P50,000 for a one-sixth interest in the partnership. 3. Garachico invested P50,000 for a 25% interest in the partnership.

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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