Premium Essay

Partnership Dissolution

In: Business and Management

Submitted By unabiadominic
Words 800
Pages 4
University of San Jose – Recoletos
Junior Philippine Institute of Accountants
Quizbowlers’ Society 2014-2015

TUTORIALS IN ACCOUNTING 2
PARTNERSHIP DISSOLUTION

1. Once and Twice are partners with a capital balances of P250,000 and P200,000, sharing profits and losses 70:30. The partners are admitting Thrice as a new partner with a 25% interest for his investment of P180,000. Before admission, Once and Twice will revalue the partnership’s assets. If the net increase in the partnership’s assets is P125,000, what will be the balance in Once’s capital account immediately before Thrice’s admission?

2. Cheer, Glad, and Joy are partners with capital balances of P300,000, P480,000, and P420,000 respectively. They share profits and losses 40:40:20 and have agreed to admit Gay as a new partner, with Gay paying Joy P225,000 for his interest. Compute for the revised capital balances of the partners after admission of Gay.

3. The capital balance of Isa and Dalawa is P210,000 and P140,000 respectively. These two partners share profits and losses in the ratio of 6:4. Tatlo invests P100,000 cash in the partnership for a 20% ownership. The bonus method will be used. What are the capital balances of Isa, Dalawa, and Tatlo after the investment is recorded?

4. At December 31, One and Two are partners with capital balances of P40,000 and P20,000, sharing profits and losses in the ratio of 2:1, respectively. On this date, Three invests P17,000 cash for a one fifth interest in the capital and profit of the new partnership. Assuming the bonus method is used, how much should be credited to Three capital account?

5. Eleven, Twelve, Thirteen are partners who share profits and losses 35:40:25. The partners have capital balances of P80,000, P110,000 and P55,000. Eleven is withdrawing from the partnership. At the date of the withdrawal, the partners revalued all the assets and…...

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