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The percentages in parenthesis after the partners' capital balances represent their respective interests in profits and losses. The partners agree to admit Dale as a member of the firm under the following independent situations. From the following, prepare the journal entries needed to record the admission of Dave and the capital balances of the partners in the new partnership. Situation 1. Dave purchases a ¼ interest in the firm. One-fourth of each partner's capital is to be transferred to the new partner. Dave pays the partners P_ proportion to the equities given up. which is divided between them in Situation 2. Dave purchases a ¼ interest in the firm. One-fourth of each partner's capital is to be transferred to the new partner. Dave pays the partners P60,000, which is divided between them in proportion to the equities given up. The assets of the partnership are to be adjusted. Situation 3. Dave purchases a ¼ interest in the firm. One-fourth of the capital of Aron and Ben is to be transferred to the new partner. Dave pays Aron and Ben P45,000. The assets of the partnership are to be adjusted.

The percentages in parenthesis after the partners' capital balances represent their respective interests in profits and losses. The partners agree to admit Dale as a member of the firm under the following independent situations. From the following, prepare the journal entries needed to record the admission of Dave and the capital balances of the partners in the new partnership. Situation 1. Dave purchases a ¼ interest in the firm. One-fourth of each partner's capital is to be transferred to the new partner. Dave pays the partners P_ proportion to the equities given up. which is divided between them in Situation 2. Dave purchases a ¼ interest in the firm. One-fourth of each partner's capital is to be transferred to the new partner. Dave pays the partners P60,000, which is divided between them in proportion to the equities given up. The assets of the partnership are to be adjusted. Situation 3. Dave purchases a ¼ interest in the firm. One-fourth of the capital of Aron and Ben is to be transferred to the new partner. Dave pays Aron and Ben P45,000. The assets of the partnership are to be adjusted.

FINANCIAL ACCOUNTING
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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Problem 1 A partnership had the following condensed balance sheet: Assets Liabilities and Capital Cash P15,000 Liabilities P45,000 Non-cash assets 195,000 Aron, capital(50%) 90,000 Charlie, loan 15,000 Ben, capital(30%) 30,000 Charlie,capital(20%) 60,000 Total P225,000 Total P225,000
Transcribed Image Text:Problem 1 A partnership had the following condensed balance sheet: Assets Liabilities and Capital Cash P15,000 Liabilities P45,000 Non-cash assets 195,000 Aron, capital(50%) 90,000 Charlie, loan 15,000 Ben, capital(30%) 30,000 Charlie,capital(20%) 60,000 Total P225,000 Total P225,000
The percentages in parenthesis after the partners' capital balances represent their respective interests in profits and losses. The partners agree to admit Dale as a member of the firm under the following independent situations. From the following, prepare the journal entries needed to record the admission of Dave and the capital balances of the partners in the new partnership. Situation 1. Dave purchases a ¼ interest in the firm. One-fourth of each partner's capital is to be transferred to the new partner. Dave pays the partners P_ proportion to the equities given up. which is divided between them in Situation 2. Dave purchases a ¼ interest in the firm. One-fourth of each partner's capital is to be transferred to the new partner. Dave pays the partners P60,000, which is divided between them in proportion to the equities given up. The assets of the partnership are to be adjusted. Situation 3. Dave purchases a ¼ interest in the firm. One-fourth of the capital of Aron and Ben is to be transferred to the new partner. Dave pays Aron and Ben P45,000. The assets of the partnership are to be adjusted. Situation 4. Dave invests P75,000 for a ¼ interest in the firm. Situation 5. New partner Dave conveyed a tangible asset with fair value of P82,500 with an assumed mortgage of P15,000 in exchange for a 35% interest in capital. Dave would be acquiring a 4 interest in the profits of the partnership. The total agreed capital after admission is P270,000. The partnership will pay the mortgage.
Transcribed Image Text:The percentages in parenthesis after the partners' capital balances represent their respective interests in profits and losses. The partners agree to admit Dale as a member of the firm under the following independent situations. From the following, prepare the journal entries needed to record the admission of Dave and the capital balances of the partners in the new partnership. Situation 1. Dave purchases a ¼ interest in the firm. One-fourth of each partner's capital is to be transferred to the new partner. Dave pays the partners P_ proportion to the equities given up. which is divided between them in Situation 2. Dave purchases a ¼ interest in the firm. One-fourth of each partner's capital is to be transferred to the new partner. Dave pays the partners P60,000, which is divided between them in proportion to the equities given up. The assets of the partnership are to be adjusted. Situation 3. Dave purchases a ¼ interest in the firm. One-fourth of the capital of Aron and Ben is to be transferred to the new partner. Dave pays Aron and Ben P45,000. The assets of the partnership are to be adjusted. Situation 4. Dave invests P75,000 for a ¼ interest in the firm. Situation 5. New partner Dave conveyed a tangible asset with fair value of P82,500 with an assumed mortgage of P15,000 in exchange for a 35% interest in capital. Dave would be acquiring a 4 interest in the profits of the partnership. The total agreed capital after admission is P270,000. The partnership will pay the mortgage.
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