Professional Documents
Culture Documents
ANSWER 1 645,000
ANSWER 2 - 500,000
ANSWER 3 924,250
ANSWER 4 2,817,500
ANSWER 5 658,250
ANSWER 6 - 955,000
PROBLEM
Subject: AFAR
Topic: Partnership Dissolution
(Adapted)
D mahirap, Madali, at Easy are partners with capital balance of P1,163,000, P3,295,000, and
P897,000, respectively, sharing profits and losses in the ratio of 2:4:2. Basic is admitted as a new
partner bringing with him expertise and is to invest cash for a 20% interest in the partnership which
includes a credit of P455,000 for bonus upon his admission. The asset of the partnership are
overvalued upon admission of Basic so they adjusted their total agreed capitalization to P5,500,000
On January 1, 2020, X, Y and Z formed a Partnership with original capital contribution of P450k, P
During 2020, X, Y, and Z made additional investment of P400k, 250k, and P350k, respectively. A
respectively. At the end of 2020, the capital balance of Y is reported at P1M. The profit or loss ag
- Bonus of 10% of Net income after interest and salary each to partner X and Z
nd P350k, respectively. At the end of 2020, X, Y, and Z made drawings of P200k, P100k, P400k,
P1M. The profit or loss aggrement of the partners are as follows:
X Y Z TOTAL
BEG. BAL. 450,000 600,000 300,000 1,350,000
ADDITIONAL INVESTMEN 400,000 250,000 350,000 1,000,000
WITHDRAWALS - 200,000 - 100,000 - 400,000 - 700,000
SHARE OF PROFITS 497,000 250,000 373,000 1,120,000
END. BAL. 1,147,000 1,000,000 623,000 2,770,000
X Y Z TOTAL
INTEREST 90,000 120,000 60,000 270,000
SALARY 160,000 - 40,000 200,000
BONUS 65,000 - 65,000 130,000
REMAINDER 182,000 130,000 208,000 520,000
PROFIT DISTRIBUTION 497,000 250,000 373,000 1,120,000