Problem #20

Withdrawal of a Partner

On July 10, 2019, Partner Ibrahi, decided to wthdraw from Cebedo, Basa and Ibrahim Partnership. Their profit and loss ratio is
Partnership assets are to be used to acquire Ibrahim's partnership interest. The statement of Finanacial Position for the partn

Required: Prepare the journal entries to record Ibrahim's withdrawal under each of the following assumptions.

Account Title
1 Ibrahim, Capital
Cebedo, Capital
Basa, Capital
Cash

2 Ibrahim, Capital
Cebedo, Capital
Basa Capital
Cash

3 Ibrahim, Capital
Equipment
Cash

Problem #21
Withdrawal and Admission of Partners

The partner's capital (income-sharing ratio in parentheses) of Rivedelo, Del Mundo, Galvan and Samson on May 31, 2019, was

Required: Prepare the journal entries to record the foregoing events

Account Title
a Galvan, Capital
Rivadelo, Capital
Del Mundo, Capital
Samson, Capital
Cash
To record retirement of Galvan, paid 50,000 cash.

b Cash
Rivadelo, Capital
Del Mundo, Capital
Samson, Capital
Mamitag, Capital
To record the investment of Mamitag in the partnership

Problem# 22
 Burgos and Albao Wrecking Company, a partnership, is operating a general demolition business. Profits and losses are shared
books are kept on a calendar basis. After the business has been in operation for several years, Cero died on Sept. 15. Mrs. Ce
Account Titles
1 Cero, Capital
Cash
Burgos, Capital
Albao, Capital
Pascual, Capital
To record the withdrawal of Cero's Capital

2
Cero,Capital
Burgos,Capital
Albao, Capital
Pascual, capital
Cash
To record the withdrawal of Cero, paying 500,000

3 Cero, Capital
Cash
Pascual, Capital
To record the purchase of Cero's Capital by Pascual, paying 400,000

Problem#23
Incorporation of a Partnership

The condensed statement of finanacial position of the partnership of Buenaflor and Gangosoas of Dec. 31, 2019.
Prepare the journal entries in the books of partnership.

Account Title
Total Asset
Buenaflor, Capital
Gangoso, Capital
The fair value of assets was P24,000 more than the caryying value.

Total Liabilities
Buenaflor, Capital
Gangoso, Capital
Total Assets
To close the books of the partnership

Books of Corporation
Total Assets
Total Liabilities
 Share Capital

Problem#24
Incorporation of a Partnership

Kalaw and Woo are partners sharing profits and losses in the ratio of 1:2, respectively. On July 1,2019, they decide to form KW
by transferring the assets and liabilities from the partnership to the corporation in exchange for its share of stoc

Accounts Receivable
Inventory
Property and Equipment

Account Titles
Liabilities
Kalaw, Capital
Woo, Capital
Cash
Accounts Receivable
Inventory
Property and Equipment

PS (preference share)

OS (ordinary share)

Kalaw, Capital
Ordinary Share (10 par x 720)

Preference Share (100 par)

Share premium (= 1,200)

# of preference share less the share premium

x 100
 ahim Partnership. Their profit and loss ratio is 3:2:1, respectively.
statement of Finanacial Position for the partnership on the date follows.

h of the following assumptions.

Dr Cr
50,000
2400
1600
54,000

50,000
3000
2,000
45,000

42,500
2,000
40500

ndo, Galvan and Samson on May 31, 2019, was as follows.

Dr Cr
70,000
5,000
5,000
10,000
50,000

20,000
500
500
1,000
22,000
molition business. Profits and losses are shared equally. The
or several years, Cero died on Sept. 15. Mrs. Cero desired to
debit credit
350,000
250,000
333,333.40
333,333.40
333,333.40

350,000
50,000
50,000
50,000
500,000

350,000
50,000
400,000

and Gangosoas of Dec. 31, 2019.

Debit Credit
24,000
12,000
12,000

40,000
92,000
92,000
224,000

n
224,000
40,000
 184,000

ectively. On July 1,2019, they decide to form KW Corporation

e corporation in exchange for its share of stock.

Book Value Agreed Value

60,000 40,000
90,000 68,000
174,000 180,600

Debit Credit
60,000
83,000
190,600
45,000
40,000
68,000
180,600

2580
(258,000 / 100 par)

1440
(14,400 / 10 par)

83,000 Woo, Capital 190,600

-7,200 -7,200
75,800 183,400
758 1834
800 400

750 1830
75,000 183,000