Scribd
Upload
52 views1 page

06 Task Performance 1

The partnership of Red and White admits Blue as a new partner. Blue either buys out White's share for $1.5 million or invests $1.55 million for a 1/4 interest. The document provides accounting tasks to record these transactions and the partnership's liquidation. It will score the solutions based on correct accounting, balances, and completion.

Uploaded by

Richmon Rabe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
52 views1 page

06 Task Performance 1

The partnership of Red and White admits Blue as a new partner. Blue either buys out White's share for $1.5 million or invests $1.55 million for a 1/4 interest. The document provides accounting tasks to record these transactions and the partnership's liquidation. It will score the solutions based on correct accounting, balances, and completion.

Uploaded by

Richmon Rabe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

BM1705

Name: DATE: SCORE:

Accounting for Partnership (70 points)

The partnership of Red and White admits Blue as a partner on January 1, 20CY. The partnership has the following
balances on December 31, 20PY:

Red and White Partnership


Balance Sheet
December 31, 20PY
Assets Liabilities and Owner’s Equity
Cash P 450,000 Accounts Payable P 2,500,000
Other Assets 5,500,000 Red, Capital 2,250,000
White, Capital 1,200,000
Total Assets P 5,950,000 Total Liabilities and Owner’s Equity P 5,950,000

Profits and losses for Red is 60% and 40% for White, respectively.

Requirements:
1. Suppose Blue pays White P1,500,000 to buy out White. Red approves Blue as a partner.
a. Record the transfer of equity on the partnership books on January 1, 20CY. (2 points: 1 point for each
correct account and amount used)
b. Prepare the partnership balance sheet immediately after Blue is admitted as a partner. (25 points)
2. Suppose Blue becomes a partner by investing P1,550,000 cash on January 1, 20CY to acquire a 1/4 interest in
the business.
a. Compute Blue’s capital balance, and determine whether there’s any bonus. If so, who gets the bonus? (5
points)
b. Journalize Blue’s investment in the business. (4 points: 1 point for each correct account and
amount used)
c. Prepare the partnership balance sheet immediately after Blue is admitted as a partner. Include the heading.
(25 points)
3. Assume that Red and White partnership liquidates by selling its other assets for P5,000,000. Prepare the entries
to liquidate the partnership on January 1, 20CY. (9 points: 1 point for each correct account and
amount used)
Rubrics for scoring:
CRITERIA PERFORMANCE INDICATORS POINTS CRITERIA POINTS
Content Correct accounts and amounts used 15 Complete solution with correct answer 5
Heading Financial report is properly identified and Last two (2) major steps of the solution are
dated 5 incorrect 4
Sums Computed final amounts are Half of the solution is correct
5 3
correct/balanced
Total First two (2) major steps of the solution are
25 correct 2
First major step of the solution is correct 1

06 Task Performance 1 *Property of STI


Page 1 of 1

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy