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Problem 10 (Chapter 3)

The document discusses different scenarios for admitting a new partner or an existing partner withdrawing from a partnership. It provides the capital account balances of existing partners Aguilar, Sustrina and Bigalbal. Then it lists 6 scenarios involving the admission of partner Pascual or withdrawal of partner Aguilar and the journal entries required under each scenario.

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391 views9 pages

Problem 10 (Chapter 3)

The document discusses different scenarios for admitting a new partner or an existing partner withdrawing from a partnership. It provides the capital account balances of existing partners Aguilar, Sustrina and Bigalbal. Then it lists 6 scenarios involving the admission of partner Pascual or withdrawal of partner Aguilar and the journal entries required under each scenario.

Uploaded by

jerhellenfigueroa915
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Problem

10
Presented by :
Jerhellen Figueroa
Jezamy Sampayan
Admission by Purchase of Interest or
Investment of Assets
Dolores Aguilar, Isolde Sustrina, and Beth Bigalbal are partners in
Cavite Realty Company. Their capital balances as at July 31, 2019, are
as follows:

Aguilar,Capital Sustrina,Capital Bigalbal,Capital


| 450,000 | 150,000 | 300,000

Each 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 under each of the following conditions :
A. Pascual paid Aguilar P125,000 for 20% of Aguilar’s
interest in the partnership.
TOTAL :

Aguilar, Capital 360,000


Sustrina, Capital 150,000
Bigalbal, Capital 300,000
Pascual, Capital 90,000
Total : 900,000

Aguilar, Capital 90,000


Pascual, Capital 90,000
B. Pascual invested P200,000 cash in the partnership and
received an interest equal to her investment.
TOTAL :

Aguilar, Capital 450, 000


Sustrina, Capital 150,000
Bigalbal, Capital 300,000
Pascual, Capital 200,000
Total : 1,100,000

Cash 200,000
Pascual, Capital 200,000
C. Pascual invested P300,000 cash in the partnership for a
20% interest in the business.

Cash 300,000
Pascual, Capital 240,000
Aguilar, Capital 30,000
Sustrina, Capital 10,000
Bigalbal, Capital 20,000
D. Pascual invested P300,000 cash in the partnership for a
40% interest in the business.

Cash 300,000
Aguilar, Capital 90,000
Sustrina, Capital 30,000
Bigalbal, Capital 60,000
Pascual, Capital 480,000
E. Aguilar withdrew from the partnership, taking P525,000.
The excess of withdrawn assets over Aguilar’s partnership
interest is distributed according to the balances of the Capital
accounts.

Aguilar, Capital 450,000


Sustrina, Capital 25,000
Bigalbal, Capital 50,000
Cash 525,000
F. Aguilar withdrew by selling her interest directly to Pascual
for P600,000.

Aguilar, Capital 450,000


Pascual, Capital 450,000
Thank
You

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