ABCD Partnership

Adams, Capital 26,000.00

Barnes, Capital 52,000.00
Cordas, Capital 117,000.00
Davis, Capital 156,000.00

Eden contributes $49,000 into the ABCD partnership for a 25% interest. The four original partners share
profits and losses equally. Using the bonus method, determine the balances for each of the five partners
after Eden joins the partnership.

Contributed Capital Bonus Agreed Capital

Adam 26,000.00 - 12,750.00 13,250.00
Barnes 52,000.00 - 12,750.00 39,250.00
Cordas 117,000.00 - 12,750.00 104,250.00
Davis 156,000.00 - 12,750.00 143,250.00
Total (75%) 351,000.00 - 51,000.00 300,000.00
Eden (25%) 49,000.00 51,000.00 100,000.00
Total 400,000.00 - 400,000.00

Cash 49,000.00
Adams, Capital 12,750.00
Barnes, Capital 12,750.00
Cordas, Capital 12,750.00
Davis, Capital 12,750.00
Eden, Capital 100,000.00
original partners share
ach of the five partners
Eden acquired a 20% interest in the partnership by contributing a total of $71,500 directly to the other
four partners. No goodwill is to be recorded. Profits and losses have previously been split according to
the following percentages: Adams, 15%, Barnes, 35%, Cordas, 30%, and Davis, 20%. After Eden made
his investment, what were the individual capital balances?

Contributed Capital Bonus Agreed Capital

Adam 26,000.00 - 10,530.00 15,470.00
Barnes 52,000.00 - 24,570.00 27,430.00
Cordas 117,000.00 - 21,060.00 95,940.00
Davis 156,000.00 - 14,040.00 141,960.00
Total (80%) 351,000.00 - 70,200.00 280,800.00
Eden (20%) - 70,200.00 70,200.00
Total (100%) 351,000.00 - 351,000.00

Adams, Capital - 10,530.00

Barnes, Capital - 24,570.00
Cordas, Capital - 21,060.00
Davis, Capital - 14,040.00
Eden, Capital
 ectly to the other
split according to
After Eden made
On June 30, 2015, the statement of financial position for the partnership of Villon, Obrero
and Bernal, together with their respective profit and loss ratio were as folllows:
Fair Value
Assets, at cost 180,000.00 216,000.00

Villon, Loan 9,000.00 9,000.00

Villon, Capital (20%) 42,000.00 7,200.00 49,200.00 58,200.00
Obrero, Capital (20%) 39,000.00 7,200.00 46,200.00 - 750.00
Bernal, Capital (60%) 90,000.00 21,600.00 111,600.00
Total 180,000.00 216,000.00

Villon had decided to retire from the partnership. By mutual agreement, the assets
are to be adjusted to their fair value of 216,000 at June 30, 2015. It was agreed
that the partnership would pay Villon 61,200 cash for Villon's partnership interest,
including Villon's loan which is to be repaid in full. No goodwill is to be recorded.
After Villon's retirement, what is the balance of Obrero's capital account?

216,000.00
180,000.00 Villon 7,200.00 61,200.00
36,000.00 Obrero 7,200.00 58,200.00
Bernal 21,600.00 3,000.00
36,000.00

Assets 36,000.00
Villon 7,200.00
Obrero 7,200.00
Bernal 21,600.00

Villon 58,200.00
Obrero 750.00
Bernal 2,250.00
Cash 61,200.00
 45,450.00

Obrero 750.00
Bernal 2,250.00
3,000.00