Scenario 1

Amount paid 24,000.00

Book Value of interest (60,000 * 1/3) 20,000.00
Personal gain of D 4,000.00

D, Capital 20,000.00
F, Capital 20,000.00

D, Capital (60,000 - 20,000) 40,000.00

E, Capital 40,000.00
F, Capital 20,000.00

Scenario 2

Amount paid 25,000.00

Book Value of interest (100,000 * 1/4) 25,000.00
-

D, Capital 15,000.00
E, Capital 10,000.00
F, Capital 25,000.00

D, Capital (60,000 - 15,000) 45,000.00

E, Capital (40,000 - 10,000) 30,000.00
F, Capital 25,000.00

Scenario 3

Book Value Approach

Amount paid to D 18,000.00

Book Value of interest (60,000 * 1/4) 15,000.00
Personal Gain of D 3,000.00

Amount paid to E 12,000.00

Book Value of interest (40,000 * 1/4) 10,000.00
Personal Gain of E 2,000.00 5,000.00

D, Capital 15,000.00
E, Capital 10,000.00
F, Capital 25,000.00

D, Capital (60,000 - 15,000) 45,000.00

E, Capital (40,000 - 10,000) 30,000.00
F, Capital 25,000.00

D, Profit and loss ratio (70% * 75%) 52.50%

E, Profit and loss ratio (30% * 75%) 22.50%
F, Profit and loss ratio 25.00%

Revaluation Approach

Amount paid 30,000.00 1/4 120,000.00

BV of interest 25,000.00 100,000.00
Excess 5,000.00
Divided by CI ratio 25%
Revaluation 20,000.00 20,000.00
D, Capital 14,000.00
E, Capital 6,000.00

Asset(Goodwill) 20,000.00
D, Capital 14,000.00
E, Capital 6,000.00
 D, Capital (60,000 + 14,000) 74,000.00
E, Capital (40,000 + 6,000) 46,000.00

D, Capital (74,000 * 1/4) 18,500.00

E, Capital (46,000 * 1/4) 11,500.00
F, Capital 30,000.00

Scenario 4

Book Value Approach

Amount paid to D and E 22,000.00

Book Value of interest (100,000 * 1/4) 25,000.00
Personal loss of D and E (3,000.00)

D, Capital 15,000.00
E, Capital 10,000.00
F, Capital 25,000.00

D, Capital (60,000 - 15,000) 45,000.00

E, Capital (40,000 - 10,000) 30,000.00
F, Capital Given 25,000.00

D, Profit and loss ratio (70% * 75%) 52.50%

E, Profit and loss ratio (30% * 75%) 22.50%
F, Profit and loss ratio 25.00%

Revaluation Approach

Amount paid 22,000.00 1/4 88,000.00

BV of interest 25,000.00 100,000.00
 Excess (3,000.00)
Divided by CI ratio 1/4
Revaluation (12,000.00) (12,000.00)
D, Capital (8,400.00)
E, Capital (3,600.00)

D, Capital 8,400.00
E, Capital 3,600.00
Assets 12,000.00

D, Capital (60,000 - 8,400) 51,600.00

E, Capital (40,000 - 3,600) 36,400.00

D, Capital (51,600 * 1/4) 12,900.00

E, Capital (36,400 * 1/4) 9,100.00
F, Capital 22,000.00

Scenario 5 NO revaluation and NO bonus

Total Agreed Capital 40,000.00

Total Contributed Capital (20K + 10K + 10K) 40,000.00
No Revaluation -

Agreed Capital 10,000.00

Contributed Capital 10,000.00
No Bonus -

Cash 10,000.00
J, Capital 10,000.00

Scenario 6 Bonus to NEW partner

 Total Agreed Capital 40,000.00
Total Contributed Capital (20K + 10K + 10K) 40,000.00
No Revaluation -

Agreed Capital 14,000.00

Contributed Capital 10,000.00
Bonus to the NEW partner 4,000.00
G, Capital 2,400.00
H, Capital 1,600.00

Cash 10,000.00
G, Capital 2,400.00
H, Capital 1,600.00
J, Capital 14,000.00

G, Capital (20,000 - 2,400) 17,600.00

H, Capital (10,000 - 1,600) 8,400.00
J, Capital 14,000.00

Scenario 7 Revaluation to NEW partner

Total Agreed Capital ? 45,000.00

Total Contributed Capital (20k + 10k + 10k) 40,000.00
Revaluation 5,000.00 TAC 45,000.00
CI ratio 1/3
Agreed Capital given 15,000.00 AC 15,000.00
Contributed Capital 10,000.00
Total Revaluation and Bonus 5,000.00
Revaluation 5,000.00
Bonus -

Cash 10,000.00
 Assets/Goodwill 5,000.00
J, Capital 15,000.00

Scenario 8 Bonus to OLD partners

Total Agreed Capital 50,000.00

Total Contributed Capital (20K + 10k + 20k) 50,000.00
No revaluation -

Agreed Capital 15,000.00

Contributed Capital 20,000.00
Total Revaluation and Bonus (5,000.00)
Revaluation -
Bonus (5,000.00)
G, Capital (3,000.00)
H, Capital (2,000.00)

Tangible assets 25,000.00

Mortgage payable 5,000.00
G, Capital 3,000.00
H, Capital 2,000.00
J, Capital 15,000.00

G, Capital (20,000 + 3,000) 23,000.00

H, Capital (10,000 + 2,000) 12,000.00
J, Capital 15,000.00

Scenario 9 Revaluation to OLD partners

Equipment 7,000.00
G, Capital 4,200.00
H, Capital 2,800.00
 G, Capital (20,000 + 4,200) 24,200.00
H, Capital (10,000 + 2,800) 12,800.00

Total Agreed Capital 64,000.00

Total Contributed Capital (24.2K + 12.8K + 24K) 61,000.00
Revaluation 3,000.00

Agreed Capital 24,000.00

Contributed Capital 24,000.00
Total Revaluation and Bonus -
Revaluation 3,000.00
Bonus -
G, Capital -
H, Capital -

Cash 24,000.00
Asset/Goodwill 3,000.00
J, Capital 24,000.00
G, Capital 1,800.00
H, Capital 1,200.00

G, Capital (20,000 + 4,200 + 1,800) 26,000.00

H, Capital (10,000 + 2,800 + 1,200) 14,000.00
J, Capital 24,000.00

Scenario 10 Revaluation and bonus to NEW partner

Total Agreed Capital 50,000.00

Total Contributed Capital (20K + 10K + 10K) 40,000.00
Revaluation 10,000.00
 Agreed Capital 22,500.00
Contributed Capital 10,000.00
Total Revaluation and Bonus 12,500.00
Revaluation 10,000.00
Bonus 2,500.00
G, Capital 1,500.00
H, Capital 1,000.00

Cash 10,000.00
Assets/Goodwill 10,000.00
G, Capital 1,500.00
H, Capital 1,000.00
J, Capital 22,500.00

G, Capital (20,000 - 1,500) 18,500.00

H, Capital (10,000 - 1,000) 9,000.00
J, Capital 22,500.00

Scenario 11 Revaluation and bonus to OLD partners

Total Agreed Capital 60,000.00

Total Contributed Capital 45,000.00
Revaluation 15,000.00

Agreed Capital 12,000.00

Contributed Capital 15,000.00
Total Revaluation and Bonus (3,000.00)
Revaluation 15,000.00
Bonus (18,000.00)
G, Capital (10,800.00)
H, Capital (7,200.00)
 Cash 15,000.00
Assets/Goodwill 15,000.00
J, Capital 12,000.00
G, Capital 10,800.00
H, Capital 7,200.00

Scenario 12 Revaluation to NEW and OLD partner

Total Agreed Capital 60,000.00

Total Contributed Capital 45,000.00
Revaluation 15,000.00

Agreed Capital 18,000.00

Contributed Capital 15,000.00
Total Revaluation and Bonus 3,000.00
Revaluation 15,000.00
NEW partner (3,000.00)
OLD partners (12,000.00)
G, Capital (7,200.00)
H, Capital (4,800.00)
Bonus
G, Capital -
H, Capital -

Cash 15,000.00
Assets/Goodwill 15,000.00
J, Capital 18,000.00
G, Capital 7,200.00
H, Capital 4,800.00

Scenario 13 Bonus to OLD partners

 Total Agreed Capital ? 50,000.00
Total Contributed Capital 50,000.00
No Revaluation -

Agreed Capital ? 15,000.00

Contributed Capital 20,000.00
Bonus to OLD partners (5,000.00)
G, Capital (3,000.00)
H, capital (2,000.00)

Cash 20,000.00
G, Capital 3,000.00
H, Capital 2,000.00
J, Capital 15,000.00

Scenario 14 Bonus to NEW partner

Fair Value of Equipment 3,000.00

Book Value 5,000.00
Overvaluation (2,000.00)

G, Capital 1,200.00
H, Capital 800.00
Equipment 2,000.00

Total Agreed Capital ? 34,000.00

Total Contributed Capital 34,000.00
No Revaluation -

Agreed Capital ? 10,200.00

Contributed Capital 6,000.00
Bonus to NEW partner 4,200.00
 G, Capital 2,520.00
H, capital 1,680.00

Cash 6,000.00
G, Capital 2,520.00
H, Capital 1,680.00
J, Capital 10,200.00

G, Capital 16,280.00
H, Capital 7,520.00
J, Capital 10,200.00