Problem1

Contributed Bonus Agreed

Maniquiz 75% 140,000 -2,700 137,300
Monte 25% 56,000 -900 55,100
Total 196,000 -3,600 192,400
Galang 100,000 3,600 103,600

Total 296,000 296,000

Galang to acquire 35% of total contrinuted capital

296,000 x 35% 103,600
Paid capital 100,000
Bonus to Galang 3,600

Distribution of bonus
Maniquiz 3,600 x 75% = 2,700
Monte 3,600 x 25% = 900
Problem2

Required
1.) Journalize the entries to record the admission of Labalan and Magada
*Labalan Debit Credit
Cardenas, Capital 30,000
San Jose, Capital 27,500
Labalan, Capital 57,500

*Magada
Cash 70,000
Magada, Capital 70,000

Cardenas, Capital (150,000 x 1/5) 30,000

San Jose, Capital (110,000 x 25%)  27,500
Total  57,500

2.)
Cardenas 120,000
San Jose 82,500
Labalan 57,500
Magada 70,000
Total 330,000
Problem3

1.) Gonzaga Magada Padilla Total

Contributed Capital 30,000 20,000 30,000 80,000
Bonus to old partners 7,500 2,500 -10,000 -
Agreed capital 37,500 22,500 20,000 80,000

Computation of agreed capital

Padilla (P 80,000 x 1/4 interest) 20,000
Bonus to old partners (P 30,000-20,000) 10,000
Bonus to Gonzaga (P 10,000 x 3/4) 7,500
Bonus to Magada (P 10,000 x 1/4) 2,500

Cash 30,000
Ortiz Capital 30,000

Ortiza, Capital 10,000

Gonzaga, Capital 7,500
Magada, Capital 2,500

2.)
Cash 30,000
Ortiz Capital 30,000

Ortiza, Capital 10,000

Gonzaga, Capital 7,500
Magada, Capital 2,500

Inventory 16,000
Gonzaga, Capital 12,000
Magada, Capital 4,000
Problem4

Resulta Capital Magpantay,Capital

Profit Ratio 60% 40%

Balance before restatement 1,330,000 1,080,000

Add/Deduct:
Allowance for Uncollectible Accou 45,000 27,000 18,000
Inventory 50,000 30,000 20,000
Accrued Expenses 40,000 24,000 16,000
Balance after restatement 1,309,000 1,066,000

Before admission Ratio After admission

Resulta 1,309,000 50% 1,484,375
Magpantay 1,066,000 30% 890,000
Tria 20% 593,750
Total 2,375,000 100% 2,968,125

Tria should invest 593,750 for a 20% interest in the partnership

7pts
Problem6

Opening balance Capital Infused Capital Sacrificed Capital Gained

Rey Refozar 75,000 5,625

Rogelio Ceradoy 125,000 9,375
Elmer Dimayuga 50,000 15,000
Total 200,000 50,000 15,000 15,000
Closing Balance

69,375
115,625
65,000
250,000
Problem7

Required Adjustment Agreed

Contributed Capital Capital
1.) Mallari 250,000 -125,000 125,000
Chua 500,000 500,000
Palatino 125,000 125,000
750,000 0 750,000

Palatino paid Mallari P250, 000 for 50% of his interest to Palatino of 50%
equivalent to P125,000

Adjustment Agreed 12pts

2.) Contributed Capital Capital
Mallari 250,000 - 250,000
Chua 500,000 - 500,000
Palatino 250,000 - 250,000
1,000,000 0 1,000,000

Palatino invested P250, 000 for a one fourth interest in the partnership.
They no adjustment or bonus.
Adjustment Agreed
3.) Contributed Capital Capital
Mallari 250,000 -30,000 220,000
Chua 500,000 -20,000 480,000
Palatino 250,000 50,000 300,000
1,000,000 0 1,000,000

Palatino invested P250, 000 for a 30% interest in the partnership

Adjustment Agreed
4.) Contributed Capital Capital
Mallari 250,000 30,000 280,000
Chua 500,000 20,000 520,000
Palatino 250,000 -50,000 200,000
1,000,000 0 1,000,000

Palatino invested P250, 000 for a 20 % interest in the partnership.

Problem8

1 .Garachico paid Castro $50,000 for 40% of his interest.

This is PURCHASE there is NO BONUS
Castro, Capital = 100,000 x 40% = 40,000
50,000 - 40,000 = 10,000 This is gain of the partner itself not a bonus.

New Capital
Castro, Capital 60,000
Falceso, Capital 150,000
Garachico, Capital 40,000

2 Castro = 100,000
Falceso = 150,000
Garachico = 50,000
Total Invested = 300,000 x 1/6 ( To castro ) = 50,000
The Interest of Garachico is equal to it's 25% interest therefore no Bonus from the partner or to the partner

New Capital
Castro, Capital 100,000
Falceso, Capital 150,000
Garachico, Capital 50,000

3 Castro = 100,000
Falceso = 150,000
Garachico = 50,000
Total Invested = 300,000 x 25% ( To castro ) = 75,000
His interest is 75,000 but he only invested 50,000 therefore there is a bonus from the old partner.
Bonus from old partner = 75,000 - 50,000
Bonus from old partner = 25,000 - This will be shared by the old partner based on their old profit and loss ratio ( 2 :

Castro = ( 2 / 5 ) x $25,000 = $10,000

Falceso = ( 3 / 5 ) x $25,000 = $15,000

New Capital
Castro, Capital 100000 - 10,000 90,000
Falceso, Capital 150000 - 15,000 135,000
Garachico, Capital 50000 + 25,000 75,000

4 Castro = 100,000
Falceso = 150,000
Garachico = 50,000
Total Invested = 300,000 x 15% (to castro) = 45,000
His interest 45,000 is less than his invested 50,000 therefore there is a bonus to old partner or Castro give bonuses
Bonus to old partners = 50,000 - 45,000
Bonus to old partners = 5,000 This will be share by their old profit and loss ( 2 : 3 )

Castro = ( 2 / 5 ) x $5,000 = $2,000

Falceso = ( 3 / 5 ) x $5,000 = $3,000

New Capital
Castro, Capital 100000 + 2,000 102,000
Falceso, Capital 150000 + 3,000 153,000
Garachico, Capital 50000 + 5,000 55,000
rtner or to the partner

old partner.

ir old profit and loss ratio ( 2 : 5 )

artner or Castro give bonuses to the old partners.

Problem9
Statement of Changes in Partner's Equity
December 31, 2019

Angel Samson Jr. Amalia Dela Cruz Renante Balocation

Capital Balances, January 1, 2020 1,200,000 800,000
Add: Investments 500,000
Net Income 1,434,000 656,000 410,000
Less: Withdrawals -717,000 -328,000 -205,000
Capital Balances, December 31, 2020 1,917,000 1,128,000 705,000
 Angel Samson Jr. Amalia Dela Cruz
Capital Contribution 1,200,000 800,000
Admission by contribution
Capital Contributions 1,200,000 800,000

No bonus will recognized because the 20% interest on the total

capital of 2,500,000 is equal to the contribution of Renante Balo

Capital of each partner 1,200,000 800,000

Total Capital 2,500,000 2,500,000
Ratio of each 48% 32%

Angel Samson Jr. Amalia Dela Cruz

Salaries 450,000
Share in remaining profit(based on the ratio) 984,000 656,000
Total share in the profit 1,434,000 656,000
Withrawals (half of the share in profit) - 717,000 -328,000
Net Effect on Capital of each partner 717,000 328,000
 Renante Balocation Total
2,000,000
500,000 500,000
500,000 2,500,000

cause the 20% interest on the total contributed

to the contribution of Renante Balocating.

500,000
2,500,000
20%

Renante Balocation Total

450,000
410,000 2,050,000
410,000 2,500,000
-205,000 -1,250,000
205,000 1,250,000
Problem10

Required Debit Credit

a. Aguilar, Capital (450,000 x 20%) 90,000
Pascual, Capital 90,000

b. Cash 200,000
Pascual, Capital 200,000

c. Cash 300,000
Aguilar, Capital 30,000
Sustrina, Capital 10,000
Bigalbal, Capital 20,000
Pascual, Capital 240,000

Agreed Contributed
Capital Capital Difference
Original Partners 960,000 900,000 60,000 (bonus to orignal partners)
New Partners 240,000 300,000 -60,000
Total 1,200,000 1,200,000 -

d. Cash 300,000
Aguilar, Capital 90,000
Sustrina, Capital 30,000
Bigalbal, Capital 60,000
Pascual, Capital 480,000

Agreed Contributed
Capital Capital Difference
Original Partners 720,000 900,000 -180,000
New Partners 480,000 300,000 180,000 (bonus to new partners)
Total 1,200,000 1,200,000

e. Aguilar, Capital 450,000

Sustrina, Capital 25,000
Bigalbal, Capital 50,000
Cash 525,000

f. Aguilar, Capital 450,000

Pascual, Capital 450,000
orignal partners)

new partners)
Problem11

Unadjusted Trial balance

Debit Credit
Cash 95,000
Accounts Receivable 214,000
Allowance or Uncollectible Accounts 5,000
Merchandise Inventory 586,000
Prepaid Insurance 35,000
Equipment 950,000
Acc. Depreciation-Equipment 257,000
Notes Payable 120,000
Accounts Payable 148,000
Detoya, Capital 750,000
Gevera, Capital 600,000
Madelo, Capital
1,880,000 1,880,000

Detoya,Capital Gevera, Capital

Partner's Balance 750,000 600,000
AR (20,000 decrease) 10,000 10,000
Allowance (214,000-20,000) 5% less 5,000 Increase 2,350 2,350
Merchandise Inventory (52,700 increase) 26,350 26,350
Equipment (207,000 increase) 103,500 103,500
Adjusted Partner's Balance Before Admission 892,200 742,200
Transfer of Interest 300,000
Investment of Madelo
Adjusted Partner's Balance After Admission 892,200 442,200
 Balance Sheet
As of June 1, 2019
Debit Credit
445,000
194,000
9,700
638,700.00
35,000.00
900,000
-
120,000
148,000
867,500
417,500
650,000
2,212,700 2,212,700

Madelo, Capital

300,000
350,000
650,000
Problem 12
Debit Credit
1 Cash 100,000
San Pedro, Capital 100,000

2 Equipment 80,000
Magdaraog, Capital 20,000
Mercado, Capital 60,000

Cash 140,000
San Pedro, Capital 140,000

3 Cash 180,000
Magdaraog, Capital 20,000
Mercado, Capital 60,000
San Pedro, Capital 100,000

4 Cash 200,000
Magdaraog, Capital 6,250
Mercado, Capital 18,750
San Pedro, Capital 225,000