FUNDAMENTALS OF ACCOUNTING 2

MIDTERM IST ASSIGNMENT

PROBLEM1
Chelse and Rhianne are partners sharing profits
and losses in the ratio of 3:1 respectively. Their
capital balance are:
Chelse P400,000
Rhianne 200,000
They agreed to admit Nicole into the partnership
under the following independent cases:

A. Nicole;purchases 1/3 interest from the old

partners. Pink pays the partners P32,500.
B. Pink invest P60,000 for 1/3 interest in the
partnerhip.
C. Pink invest P50,000 for 1/4 interest in a new
capital of P140,000.

Requirement:
1. Prepare the journal entries for the
admission of a new partner.
2. Compute the capital balances after the
admission of Pink

PROBLEM2
Ram, Ulie, and Rocco have been partners sharing
net income and losses in 3:5:2 ratio.On October
31, the date Rocco retires from the partnership,
the equities of the partners are Ram, P104,000;
Ulie P160,000; Rocoo, P40,000.

The following are the independent cases.

A. Rocco paid P56,000 in partnership cash for his
equity.
B. Rocco is paid P68,000 in partnership cash for
his equity.

Requirement.
1. P]repare Journal entries to record the
retirement of Rocco,
2. The amount of new capital balances of
each partners,