Chapter 3 GEE ea oiled leet tana he CM Mateeu yas therfore, the ie span of ‘on the moods and hil A prteship rests pon a contractual feandation ‘procrship may Be smetet weet since 1 depends ‘elation ofthe porters ny ceumstance which eauses thet ‘rmination ofa prsersip cy fad a he partnerships permanent dsoiton ndiutatan the poriners se cgree Dizsauton an liuidaton relation porneship ore no manos partes said oe dsslved when th ‘rina sear for pp of enn activites ha ended partnership Aout e lguiated when te Binns erminated Ths apainership may Ieatisoedlton bing liaidated While dssluton mayest ligudaion faariershNgubaton alway resus to dssluton. Parnes deoution deo changes i annership interests oer for varie lfmasons These comb summarised follows: 1. Adision of porter 2. Ratvomen ofa porter 5. Deathofe parmer 4 corporation of partersip Inmostoaes whore change ownership cpus the mart aes finial poroershp ests and lites ore diferent from lr Book values. These ‘Sfeenes can be esowted for by acrding them onthe partnership Books ‘ier by eisting he anes and ables many cases, goals recorded inthe processor by aduting the portners‘ceptal accounts 109ue | {ADMISSION OFANEWARTSER i | ind cnet of ox ra caer terme | inn saeco Pepe es | ocr ie F098: viens fone ore oth xing parse, hp naming PO. The alison of ew pare 1. Pace of al 2 Pretec Porctase of latest rom Onc oF Mer Farner donee ctanetnnin, Ta eccagrensn acetal Shih betes gee umes. “Te porrinnaling beast fneipcn atl 02 ell, eer pansies aie Peng eorene nt er eee wt oe Whennizconagprner une orngr afte ites f'n or more ae ee tat Pren mcg tc of eras ae Fak bene yaenrs sernp Ths recoded by pegs otal rate een padre al of lg lacy lec ceapaty eae pte ae aa Sefer rape crs gc a re ftom ei of ee at be cade Be atrton, Asse flow ‘Mesraton. Assn folowing fr LN Panerhpon Deen 3) Poroen Cos Pa ato a a aa ee) XN som Se ntis dt, 0 sadninedio palin us one Dechert ses one-alfthe intrest sun rm eine venereal doe Ce ncn eT es mb ON css capital 0, capil torscord admission of. 10000 10000 on anewproitend oso te lowing (posite i tte panes) Sepuertipes9 Scns of epee epee aeoreine aig east ans Po ne Tal gare ranre wrasse SO pee) FS anne increta cosnglsh Hsaimsionss al of 50,0010 1, Mand teeny nese ores ‘The sew seo prines wilthen sae partners Ass neat ine os Cae Purchase roma he in rossestioras pares 1, capi. so + hci ive Cop 1000 OCs 35,000 Capt Torecord ike adsion of into LAN partners fora Sb perce retin the profs and os ‘Theaboecaty shows that ash stansferd tothe parnessip Moreover he ide ofteparertipranevock, Theamount 0,000 easier pases ous ‘Eheadt nonin! partes capt acoontare equ toe re partes rao ‘hulp be talnesof hapa accout of hod parte ‘Taam sso bthe P8000 cshistoe vided among tin Janes Tefiling procedures remanded for airandequtbledvsonof Shame teens parvers 1. Daerniethe amounts ofcapit lances tobe transfered by he existing eines: 12, Forinany exes ot deine) inthe cigial partes’ profited assSee uty ois Ol pare mn singe procedures, he P0004 fie station _— te Ee ee —_ sia O_O ra of ga es Screg sass 5 sod at _ss0 mao IPs ‘Ancraatve Method The eset ership ray be ealued when he duces refine a ee foepteaens othe cot acoments 7 inaicianecprecaiprage, sro Pa SESS eae wren 3 Undeviatnetenie sao) P3000 clip wl abe 0000 ‘Teens nn oO (1) Heniabe stfr goodil 1 Copia Be Ci Napa! 1 ear he revaluation of rt tte anon the parte igh fonds rai 4, Capita Me Cap NCapuat 2.caritt To record imision of inte partnership 6.000 3000 1500 13,000 14300 2500 50.000 Ne Gel bude rene Sori ake Theses tipcacy Sagem a edatanefcuhes chai elastin to pagar aes caren chee seh one ‘sshcoinses ithe amen arpa dra | | | ‘New Partner faves i sis ni arena outed panei meses Arenas pecan cera erty HES Se Se Tre meld of admin 8 anon as se lacoste Tee cs 57 Bays Cate 1, Thenew pastes investment cone et papa paresis book wae Coe 2.__ Thenewparae’'sInvesimentis mor tha Cee isms te parnersp spoT {22ksorthatemecorde goo exis. a ees Thene partner's invesimentslessthan he nev: parec's gered oss ia sgge tt prep’ poate cover ane el i Be array becuase gol naaonto te sss ese “The fllong ep pocedres may beusedindteriin Mnosonofenen pater 1. Compute thenen sits proportonof be ‘spiadastaows" ot capital) equals ene pial) ands show taccouat forthe ssgesipsbook abe (ogee Perenage ‘spital one ner iment ‘ttienew X pace 2 Comat ew prin contbted capil wits or ber apes capita ‘Secrnne crores be olowedinaccounting ois ore admission, ‘icorion 3 resets an overview of re cases presented above. 5, Deermne bespeifendmisn metid. Te deen methods maybe used fbocrant fre amsnof ne prioc whenadiferenc exis methods ‘Se (Iyrvlue net ase, ()ecogze goodwilo(3) th bons method, ‘Under rsunon fests nd oasis methods histor thas beparentipentsscts ac ajsted dag hedmssionof tfenew pres Some prtr’s may objeto this departure istrcal ntenrcs bu detons mo choles res anong theparetsto apt tal renting capital ofthe prineship, Underthe ‘used tests emanate hol oa. Pores Ageedoapial= "fold +SS... .. us oe | asain 3.2 ia. ‘Orca Accounting fora of2 NOW Fa | “Sepa Cop gael oF At Sams 1 wean py reo ei ‘Soareolpemen, 1 Abeba prin tag (recom ape gi 1 Re ett nh | 2. Reape tel bata yay Sins 5. Sn br 0 nw aes stson: | Ferpupossoft dain ase jo asune ut afer persons dng 2015, AP asa bonk alec P30,000sd profi perenngeson nity 12016, alone Capital Profi Laee us em Daten Chg vei ee <1 nse Ent Proportion of the Parts’ bok ote (ree oe 100,000. peween the new parnes’s "rn sie tees beste coms escape i Ta oe : een ena ee (io09 vate _s inseam a tives (P 100,000 equa he new panne 15 Pea een ey ena eee Epa eect estan enya Ere lean Ne ae pee Ero phe ee am aap oS tind Teen he preps books 16 Sean: Ca 100,000 “oc, Capital 100,000 Toran of Cant Tec yon esto of F100, 008 “The foning set svat oes ince: as q coe aay Fame a Cc 2 New Parner’ Ismen Moe than Proportion of the Pareship ay wonton ‘es fe greed apa Bal 300,000 100% ‘Cody invests P10, 000 fora one-fourth cept interesin the The ference EE (Gece rnc sinesentanerew pros poprsnste ok lve ioapunes lows Pa ‘oper popes ook ae (peed cai ‘Pn rapa emt tins zmett Ler atk TP cosy iat mca ani a Spit ines Fiore c or eontecneitl i Soehncectinct epi ae, Sere eee 1 Reaseprait ae ee er etter Shae fica rnes eel pee ok losatease Reset yee tl pl Tepes ial pesca ua iiss: us 2. Reger : vee Gesu sna ae inteod fer hi espete foot aes ea leningcapaisnow el procs Teper le Tampere etn ae drone casei Meche ms Testud wher i patios do 20 Who Saefceneg rem etl nae i ty Tela Heal esdngoialegu te pica balnespy teense. aerate nt Tis ‘ctereeceep pce trsto ee eoatneteca ae eee Sees pemnertereereaee ec s ‘lige ces Se) 0.3 range Aste wich Sree aniatect taco [slot oie meni. deal pwr rly aoe Heol le inl Sal res ‘itvalerotie ast purty th newly formed ‘Consens Seneiteeneeendeepr ie Sepepaeesipace Stan ah eee ‘hepato end scree = ee dire counting poco hg 4, Usehonarmtod Basi ee vametcecstinthiscue | uw net iota ner Cody pada P7500 aatn of Reva of Ane preach: eer a ang wi sin Res ct a rm Seeder ‘eetismae loot etapa ics So otc attainable FBlonog sige (0 Lend ‘ Soy Capital 1 ee ership land to markt alae rigs ti priest resulting 30000 15000 12.000 ody'smvesimeat of PLD 00 ita to 2:8. compas flows Toa pial of pre Be or ae Bi EBecament sia ooo Teleeig apt ofABCParmeshp ae aaiaion had Cay Fe a oa song capa ABC AAG eatin of and Cody nee inthe a arn copa equal P11, 000 (P440000 x25) “Theentytorecon te alison of Cody inthe rine allows: ca i) Cody Capital, Torecrd udnsion of Cod for one forth pital nen ABC Porters ‘station of Geodwit Recognition. The nex paste ay bs payin meses ron ceae gos Seay rep tsah ria. He arc neces goodeil reed Ue ope Rewotng eter oli flowed or pauershipacoutingbecaus of hee 0 (mera apap capital ql morse parnrs As noted ear, is san cranial gene ecobites a PASNo, 3. The partner information Sere tips oe pers a semen uss ceo. ‘Urns gall my comput he amon fnew press amen sare Couy vesting P1000 for aone Tout sere. The 119000 fpedvilscinpa illo sad al rntng cop 1100007257) Pa Specie poutine? ‘om ga00 Gent_— ll us | Famecoetoaalemoe unde. | ‘etn inept euaatge ae Sitesi ota ts a Seater Stormont a “Tmt nnd gondilaeoen rca MT | ; 3n0 | roma ise sy ‘oC! Tomes ste 19000 ca, fs Cady Cote a ree tbe Fea 29 ecroey igang logit | ie at ee aarioclo osm. sp Mustrton of Bove Meo. Uns hs od aption of thew pro eer caer ee sb ol ater al te cel lane rope ee eit nneaseetonsiscompusfolme |. ‘New parma inesmexe PIrO 00 Nour rope ok ae (ed pita "toon Pao imo Bans ol pas asm ‘ag Seeg ray Cie eo per old | ‘Biota pace ony end t presto Bo hte of he ferent apn M100 C50 + PROD). No aaa apa SSS em Mee ital ‘heen tori he nisin ofa toms method sas follows cash “Ay Copia A000 sp ep capa 43m Tore 102500 ston of Cow oso Ande Boy. Cad may diet bnsm ay debe bch al aes P70 sais ee one Ww. _ofllowing scale sonst concepts for C352! et A co penaoe rngan) e130 2 sor ol ‘Cae 3: Now Partner's Investment Less than Proportion ofthe Partnership ‘Book Vue (opreed capita ; ‘esa at Cony ves PH 00 fra one-fourth ep interetin bs partnership ‘Saar a eoen bene pret slvestentand te poste sproporionte tok alee capa ies flows inemeepeomp OO Niwpine’s eprint tok ve aed cpa “fivano™ Toa 25, 501 Diterace 7039 “heft nt Coys vents stn i bok loro oneurtinerestnthe pinrsipnate that theprnerstip net sess overvalued or tht Cody is ‘eming tia valine mo expeise or sls poseses nis, (Clysiveting PHO OOD in cath ar anadlooa amount that may be viewed ss ‘Thearetee tative proaches to aco forte dence when the invest ‘Slesthan be took valueuoqed. Thee spreaches area OWS 1. Reval aes downward Underthis approach: Ast nok ales are detest hi avalos. 1 Thsoldprter cal acount ae deceased orihiespectve shares of dese mv te They'd suing capa efecto pare seapinl tnances ese the amount fhe ae anon edn pts the new paintee ise (eS Oe Sey Inthisatemave del and including, ay om panavgnni inert > Beeline oe a aco emain neha , | » ecient Eeeereagianeoe n= | | rrerenraatntyaaypates ere ita ete Secreta ary 1 pep tg Ecyckiacts marten te fen ta ene eel cede reo Sere es Seiocrajcennuraaarotciog itera testichetlmmntay Se Satter (2) Any Capit 36000 | oy, Capita 24000 Trveory . nooo oreo ein is fave Notethth parte’ tae asec am P3000 0 P2000 ue te Bo 60 wite-don The al of Coy’ shar ofthe lle ‘Spl of ARC Prac afer the wit-dovn is only P8O000 ((P240000 0) .25) ‘Tecoma cy tread asin of Cdyn the ABC Partnerships ©) Cah 9000 Cob Cop Ton anion Cob soo Coy oni es i tn lL TA Pao eres de peepee toto rsp a cana wt ae ae eee eae cameiem tele iusemenpters crimes aces Soieeatiisayatnese cea fg ay besinatt ately h amount of godillonghtin bythe wares ay Hes erat eal cpa bing ean othe partes. nS a I cere ithe peer dg ‘oot ii the old partners’ 75 percent i Se yt ammo oun i Eecmnetalows: “Fareingaal P0007 7) ‘aetna tng rs 30,000 *P.00) oats Geis, _ oe tare wal ling copa nome sagittal copia ft ol pares Sich inca) toad eating cipal erated sing theinvesment of rare The coon rt diference athe est abledata shold esd fe eto suing capa berm tun teeters tal conrad cpl fo ‘fe gobi cen Asef peo remeber bow to esate goodlisto we ‘teopponte por cpl ote: Use new partes inesomen to estimate god to old partners. we old pavners ale to etimat goodil 0 ne pare. ‘Theenytoreon the sdisionof Coy it the ABC Pats cash ‘000 Godwit gn00 ‘Cad, Copal 100,000 Ta recordtheanission of Cod: Note th the ttl ening cpt ofthe ABC Paresh now P400.00, with ‘Any and Bon ogterhinga 75 perenne nd Cody having a5 percentweer es) lg lls | cenrabie 7 Ba snes ‘eration of Bos Meo. 237 ET yong abo Fee ac Paes los shea Seay fome ci paren Them ie Foam eure en take eed S “Fao n) 25 ae Boasts per ae nuclear epasomsureoedb PLSOOD IDS Pig eae aoe Andere fr Bo sn CY Sal ayy Seed P95 005s nooo | cat | And Coil Bed | Bon: cCopial “Cody Capel 95.000 Forced amision of Co Noe toy scoparia of ettlrsuting capital ss showateky ese + Pan). 25= 95000, “Teflowing seedless of apices or Cas eT + remem % ay onc nr et ‘sama ef ecumtng fortes f Ne POEs adit, Se ot ana aT ae nepal oer eso esr ed one pts of ejoual nes. “eflovng suas be seater ofecsnting F mop axel New partners investment ena is proportion af he pari Seokvateapreed aptteredi. 1. Thenewparoe sail rofteqsisivesment 2 Nogeodllobomisisreorést. teinenmentofa sership's ese 2 New arne'sinyestmentis mire than his proportion ofthe partnership's Trokvalue agreed capital ered) 1. Thercaltion fant or cognition of geodwilneessesthe press’ i atagaptl Tenses salons te ol ste inter of leer. 2. Aferrpsiin oft asetrevauton rework god bene es ‘Sit ert eqnshis nese ands pereontag oft tal esuting pit 3, User bones mein, partners al esuting capita isthe sum othe ‘lipatestipscapial lst vesteaty the new parte: Tecapital rit ‘Seeol ir Ucrew purer sles dante vestentbur eqs ispereniage of Atereulingpatenp esp Case 3 New partne'snvestmentsls than his proportion af the partnership's ‘ookvale agreed capt ere). 1 Ursa terion ote {lupus capi potand ssa. Thee pre capitate Glia bebe nearest re 2 Unlrde pod eo gondii te new panne: ante total ‘alngepalotteprseshpisinceedThene’parme cpl seeded flint nersn tt lingo tpt. 3, Treble narnstroeapl Fos til presto he new roe Tene preshipstel nga out lpaoe cap Fisbcomparuersimestat Teese parmer scant rime Teshennds un quehisposeamgeetthettlrenlsng cai—— ss) © oe he Seem) | be aon Sain ORT | Mette | certain 1. am il a 0 gun Co Capt ™ Coty | tot ay ; aero Coty ene urmrin e i, prem ad : ot aay ety Ping i uo i ‘aie a ee ec ints oh et tol ee aaa . soir ug ag" wo Ghee wat | a fat) eae ig iS rr woo ol Eine ah Ct expr rte on to eee fay aa Bie te se aa “es, oe = ee nt a me cial a or nat on as & rau ok sie Gag, ER oS a: Andy: Pungo Fave et se see ad ih See ae ns Loss Rais and Capital Ratios are Diferent Profitand More otlena new pater sai Ma tet deca se. inoue oy ero was seer me vaemtegues Whenwo aco ge TS re ‘Satan pentane aoa 50 pen ol eo tying porte ors owen TE STS eefoeny wer enteoditand lsat stb Dserining New Fates tvesient Cos. nde rvs ianoun be pet siveseetinstee revie tstihu after ean al Teclets bbane pee of paren acorn Se lon ie bsmpe opment Bay wing STOUR pres Te or rep otal os F200 and Cobyovess recruit “astern hd partes Any end ony aye tathe ase of partnerships be ‘Maltslgpt P90 bo tecnguzed he neesein the ve ofthe nd ey the reweshn. "Pevotted ah bene ie pres computed as ows TEES pa one vlc eq nemo set nso han bons yb denied befor th determination of tie {aah avestent red a the new priner For exapl, sire that Ady at ‘ory ageetopveCosy ations P1500 eronng te parnenkip The folowing Cops deminer neat hes eed fC, De PORE. tan Copan tees) asso ‘emtesepa 2800") sm eid pl cttw e300 Citar ace mer is ‘Cah inesnen eid fe er Fw0 “icone no sah inermert canbe compa yy eters Tectenstrensleciie wilesspe! ohteenl tances ‘owns tor ete! alicia beee wl lade |) Samy cap eat ete era tent ‘ie Stina Cee niracraoesesineenemeas Sees reenowereathorsion oe say vrerimaaneueeronicetnian ines en dc Smee | carer cre vjetereiesittiostecrtt, Aenea dir aemaseGiws ee sara atl, | een Eston | = nom | Sie a ae = ree a _m PL a ‘Bonus to new parte! = \WITHRAWALOFAPARTNER. Mermpreceate tea = retain nin erect cert erie Ssieeueiraaaertuitetngane ete Zone reece tpamear eee gerry ener Dan Cagney et at “Teinestofthe ig pesos ecurdbyhiscapia bres esed ‘erased hseharin be alloving aes: 1. forks rm prtesp operas ome st clsing teat de sicker 2 Re lof al mtd ies tok esto fairies) tte ntncomeor sofia years ere impopey corpse ie told kes reste be eng aoe. eee bef deermiing elancesand pron lssratioof Bee, ‘station. On ny 2, 2016, te cata (CeninsDeeare a fw: 7 ol od ie 00 a es ‘sim oe 7 a ‘on Apt 30, 216, Be witha from the paershp, The net income ofthe hip fremont eded Api 30, 2016s P4000, is eee that [veining 5000 bas mkt vale of 7,000 on Apa 30,2016 Case. Setement equa withdrawing partners interest Assume int ee ares ‘conceptpmenteqalto bine Theenestrecordthe ajustments an the ‘cee wih p0 6 ues low: Fem meneame, 4000 Ce cet ie Dee cpt enced toon rot 2) ten ae Te cpa Dex Cont Teatro ©) Bee Copel nie ce as rad eet Be ‘lrshud cel Sea a i cag ees te ci eb ot 1 Recor gpdwileqal tte eee mae ETEUNE PAS a tana mts copaty in Se eoreencmn dots ice ce kee a 1 He nyt reine Mc, Feo eS marge pico Beenie pitas share perce saratoga sean tht Beis sid P1850 vgetainn pi Liga a enact = 1 nae ise sem So & ‘S Be 2 dpa rag i Pes coscr.a0 eh z es ink 2 hes a iis (Cee, Catal 5x P1500) a Seman "8 = 19,500 ert into ret Sa ea eae recta eect Serasacace ie ea — ss ! i. ne mri Dianne mover ert watexiisbkine Them mma ee ucesnosremeenr ts ey cuneate ora rs csoaatdwibparmesop el een ad in erm pial gol odor oa twee stobe we, sete porta goodie eos. einer. Onc. Snel uae tt Fran erasure ramet Fae ee acre nance, anatenptmay bemadeto lca ie Sree fete ws ich we overt asuning tt Beef psid P17 00 forsee teeny Citrate : se oe ae Benet io He icant eames ieee ioctl terse tecnica aa aoe ‘Coa 17,000 uso 10a 2 sl etsad Bt de sig bonus eneon Cee and Dee Inte ratio of 3:2. DEATH OFAPARTNER Inthe evento the det ofa panes theese te deceased partnered i ‘ene tiramotsttsieestin lipase othizdeth, Thedecasd roe scoped ing ond se rer hangin dete boke ‘Seria ting om evduntonofsets andor teri rm ter ascoged fe bulnce ths cpta account ater consteing thence ‘Smet dou beeen ality acount pending eter “The partners may ae thatthe ele with ie est ofthe deceased partes be spurt end te eglar isa pred when books recast whi imc tscapal scouts eee wth ashen ecarings Vanousmetods uy bw in deterning the Seceased partner's share inthe neincome. He mayL os get ate, sector tomtom ons a i profit fr the Fl pig, “bef dah pli ani (hn of steno Irn b= OF PARTNERSHIP canton cori en Ht ny Rexam there neal hota Deecedoemeeeer elon tomer ci pening open PARES dy Regehr ee ety Usp! SreeEwiibenet emer ok Reo cots He he ny Secreto 1. Reva th wt nd copsize gpd ify 2, Coonteparmas cop scons coporte capital counts, INCORPORATION ew Bot perfor te Coin ne tok aoe fete a eel Thsamtng pes a oi in Inthe Books ofte Parnes 1, Reval sets ad any tert greed on in accordance wih he god tates 2, Restart oases snd ilisto the corporation anthers cep stocks the pariah 3. Reali diebuten fsecstothe pater insetlementofte blest teens acre " Atria tps en ep sry ee mee etree th Serta acct oe flaca Coens caer esa Tela aes ina peep! wt Reyer and Crat tent of Fnac! Psion Soae 30, 2016 ‘ecu exible 5620 LSC awe rts fe] expe aa0m0 Laat necamulitddepcison 350 Lies & Parte sty ae poe, 7 Pao ‘sons pte 5os00 “alibi Tago Renal 95980 crane m0 “eal Labilsaad Capa “The pars se oinakete flowing adjustments befire the incorportin: 1. Increase theallwance fork debs account oP, 000. 2. Ines the cot of te inventories ts euret market valu of P6000. 5. nctese the histor cost ft eghpmenttoeproductioncot (nev) of 140000 ade cumulated depreciation benceasedto PS, 000. 44 Recognie sseaedexpnsesofP2200, 5 Resogiz god of 200ating | ‘Tejano iit ea elo Pelee eep usin Paine Boks Rie! aries othe Hooks of the Nev Corer 000 24000 iow a ss "Ee fr a ‘eat aes aa anne ibaa ee ana ees, Capit 23380 fae er 39.420 Gap Sock 7 lin Cpa in aces of Pr code of 50 ses of 70 po aie Icke pr a price P30 are ‘Pleso00 21300 hare) dered ax oo: ees i380 ahr = 186 shoe Gh! Paaad» stlre = 131 shares ‘Now Boks Ope fr the Carpoaton ten te at of he Partenip O bee aa ioc ao i ie “Alone for Bad Debs ‘Seamer ‘en Cala Gn Copal To eo set ond hes acorg arent Se | 500 300 2200 2600 700 19.000 55.000 20 3.00 200 23.600 7300 ote | Ae rome sr ch oe at €) Siok of RE Corporation reson aes Poste 0 ‘ecu Poe 5a tue Bess 208 ‘woe bat ete ‘deena Dgrciaon i200 ‘coum Receotle Eqcpmené clot 1 ante fests and bie to RE Beerrion aad he rece of 500 Share of Serpe sok ve P30 per share 125,580 0 ant Sa 39.20 Ge Capt “ch of BC Corporation To ind ech stain porters ox fois Thos, P1250 « iahre = 4186 shares Cae phaite = Phare » L314 shares vi inthe Books af he New Corporation 24,000 5200 000 79,000 20.000 (0 Cah ‘amas Reeve penn et eo “loc fo Bad De ear ‘ional Epos Ga ee Poin Spal nies of Por reread ein f nd bis Fre prt rt ated oes. cab 4 Capital Stock Tt Pili Cpl Bxe of ar rec sf 100 Sa 20 er Share 13 4.000 5e200 ‘0,000 180,000 20,000 165,000 2,000 soon 5a.000 2.200 110,00 $8,000, 20,000 1,000a Se, . Fmateenccopesen see ag Thesumettncreen sie eis for the incarprace Pe Steerer rie =— o ngs m: cate - a — axe — Bae tan hana & Sle ir ioe Sead ne Soa = = alae a sos tea nad pe nc orice ned soacindne, 6500 ars PLO raecpoct Set sum ar ested oa hy ==>: Bs Prec cores conto tion ofaparnesin? 1. Wichofte lowing coon contntss es dsouon of Far a Desthof pant 1 Retiementofapamer © Adnisson ofp: | Alloftheabove, 2. Whmainitngan pee itoen sing meni enyaesone sed Chldpecintton iano © oft otmeaarsnhpamertasconbudte e pate. Tene cil ances of paroe 2. According oto hereon goons scouning reer resp ay beapopinee © Ether rgning sors. (4 Neer ofte foregoing 44 Whentheinvesment of anew partner excodsthe new pres” intial capital talance and spoils recorded, who wilrecsvethebonus? od partes inhi old profited lesa €. Thecldpanterintheinew proftand lose ato. {& Theoldsnd new partners inthe new proftand loss rao,errs oe, a) ea) oF us Se, 7 cpr ent net ayia rr bt an When Xisainited iS re Zl ie 000 fren the atta, i egal “= pation of excel ani pce conc rogues the com 2 Seater ovina + pene ey es Pe ethos a ‘Debits Good forthe ete amount computed, i 1b. Debits Goodwill forthe retiring partners’ sae sofhetomputed © Etereborsort Debi Reement Expense fare ting pares shoulthedfeenoteteated? 5 Remand = theta opin asus cabot be its 6 Marna eninge oa cee ee nice mat ens pts ink ces ch tan isc las om sons init te snail 2 Meat tc rel i paola lat, a Tedteneeshldeceetaliiepannen int ons He Se gl emcee Te oa = ‘ b ‘The difference should be debited to all he partners in their profit and loss a. Unt crmanceielosendedilietalad di, Be ha nee abet « ras prnesinremne cto being poesntsing a een poe’ retiring este eT eid ote ei tstiescersinteetenin ci i eons. ipegeeesssteaisttsstraminsnt| 4, yada penitent me: «. Maypeeerercutenerinie ae aaelripateoe vesmerttenenron ere serena ec 1 cox add rcopiod nde ofpas fon pesi cassette kvomabee Reece areca 2 espana beret ree 2 Net nmerpnalifa-A~cDSe ‘fico omar See tanner agains om theretrng pares orcas entre te erg prin be pretp, ‘SHRRERGNERRRRERE rts smn oh ties ceo arp ple 4, Uniero insaneSo i Bw odacaiaio3 anda peg, eine ett a 1. Inde Paroetp Las pe boos method 9 rcord Nat asennad en a on ne aot EL “ Use the following information for items 12, and — = copia tio. tee te artes shows the follwing profit and 135738 and capital onc spins dM new ae =e freon, a BES om Pizco00 * " Dian__tom_Pa2 000 | is epectve cial nd pot i nd je ia 18, Weare fomde pent BA ethene adie linen 20 pronto te spect eee copii ndertbomwsmetbekheexcy) | i otal payment oF P°,00.Hizon wil ay the money peut plal i ‘ect wth partners &_Wasrendedasnesree “Mit Ife puters tht unrecognized gods to beseeorded Pleo coat Le ae dcop blnecso te panmersaerhis sisson? alice of Bilan Aawino Locsin Dison Hizon pussooo 9900 38000 B90 000 P90;000 fuse Hei ana Baas psn a ‘2: tfheparnes age thatthe bonasmetiod ise bare capita lances tft pres afer zon'sedmion he partes? Aquino — ‘Lees Dison Hicon Pogooo P3300 90,000 Gi msso = przrao = Paze00 8400 ‘3 How' much cash should Aquino, Locsin, and Dizon receive respectively especie fom #5040, 22520 ent P8408, ond ony ifn ood record Piet Ste Sate irr got conde | Se as eseee ta FUG 1 mtg, mt em A & 3 ‘Banana Cortez orepartoes who share profs ss inthe ratio of 6-4. a Be a ep = a Banzon P 80,000, saaaparergneanestat a ta = sper nerest from Ed and Nick it he nel assets an ; are ‘apenas nis a le = . ne ek : Se Soc dei Ai si Ease celiterestenntiaaty | mettre Seopa Howse 3000s diate aon a Cotes? Tie isso, Cone P2000 i Paseo ' “3.5: Aroowisheso pase on thine parteripof Bera, Caren Oe Conte P 6,000. and Diaz "Thee presario sel. Anson one fur si Coe se Thin 9 Se 4. Pesci P24 010 a Cfz conte Ps 0% fom petri ee Sits acento pfs nth oft rial opi orbs ae et efeaten y ne ot? 620 Pee wie ear nd as arte peda Ate searot he loving yes hy aed —_ Accounts Ratio / ‘si Gore into the partnership. He wasto receive a one-fourth intrest inthe = et | ceed pen no Pees bose ax ‘ton son | ‘Eevee dy taster Gomersspbssetfenouns oe it ee SSicewotimebentake er oie il ot) Dee ee How should the P30,000 paid by Gomez be divided between Perez nnd Cadiz. Ales isa i ad dono be 4 Bren P9838 Ca ROIS eich memes teres iene te 1 Peres, PIS,000; Cadiz, P15,000. ‘Spal baowall Coven Dares? eres i ents 20.00 eeegann name isa SRE VAN sn Psa 4 pron asm, Paton 7a hm)hlmdPls ht 1a oe, —— 34: Thefiloningsatenet of spat Alig eis % a ory 1sn000 Se ison a om > so st “Alice, cpia (#0) iy (sai ai Schon a wa Fun I ee a sna a Cog oslo Dg ae | Bauer | 2 aie ‘he | | 49 OnDacener3, 2016 Aina Diz ae parners with cept balay Pho and Pan spect. Thy se ois an losesin ht Fr Onis dae See sess P36 cher torent capa nd prot ofthe ow are. The partes agree that the resp duit eon ile wih ads Rarapekddteteie a cP 400 ad Poo $B dR apts wo ae 3 sas inte a ‘pte. On is derepetecalcc Reve = —— a Re, Pan. 51,000 | “bat: AtDecerber31,Rodand Sl ‘442: Fred and Ra are partes Dy nieces ncaa) ‘ont tito wa anit sapariner with. ci Onde of Pee EI STEEP S00 immediacy ater it'sasmission lace ole ibis a Pes.oo0 are panes with coil alnces oF P40,000 ae cn shreprofizand loses interaioof 21 reeves ae eines PI7 D0 inca or aone-ftn instinct) eerie cr parent. Assuring ts arora Rowe ‘often be ceded to Pete's copa asouncon Deseber31? P1200 5000 Sree «who share pois and losses in he rai of 73; opentvely The respertv capita acount ares fol fed —~—~S~S~«* S000 Bal sco “Teyageedto it Lary aa parte widaonethid intestine capita nd pond ines upon inveament of P25 000, The new pares will, ‘Ginetta capital of? 00 Immediately ec Lon’sadmision, what ‘mete capil bales Fre, Ral nd Lan respesivey?fa ogee errs etal Te, wo share Eve years anda pre Capi 2 nan a oe ie EPMA Pg ime as * P5000 for Scie latte asta ‘emer ie ea enact et | ion apn hea a AB ‘ly erie ith i ‘eae st Nanton sepsis 7 epee, coniee | ma } ‘am | Ne smtcnioarapiaenlntetyecrtatatecal peop ren ate ie cere ang ta sete ie om perorrimeneciccenatvnet iseermeesrertlretirstmeny aa cata a 5 1s Assaning that hen pastriien ‘alo The capil bane ofthe pare 1 inrestintefirmandte ase rua ison oTAPBAEE ‘ong Ang mass PISO 16000 paso Pi8600 P1600 “46: Ang Beng sl Chng repressing profisin teat of33:2, On June Sota tlancesares flows od Bees onn00 one Sono ‘hepa ogeto alt Dngontbe following acest 1, Dongisto payAng Pon, or inert ofAng ners. 2 Dongs invest 30,000 pare, 5 Theta ene paststpistobeP.000,00,ofwiehDocs Ineretstobe 29 ‘Whatrete oil laces ofthe panes afer thesson of oad? ane Beng Ching Platsoo —pse7so0—Paas.000 “suclooo “aoniono 300,000 © wooo Sogono 300,000 ars srs00 128000 “LIT: OoMay8 20:6 theese nd profitand ls rai of Monaand Lia, patnersof ML Faetship ar showntelow Capel ——‘Praficand Last 2 saint ‘at Moma sogoo 70% te ‘000 ommeee ee ee eG 6 ee shied nial as ate 225 PEN ng ae anguea g coat iterate anieeeenet sisi eet ete tnt npc ieercareciseacntearbaaie | erection Te oe arte iy ae "ae Ge at & BERS Glow. ta, 000 Sh ctor espuenpenibai tote oy ee mina Oa pices eID Pa of sie eevee geal pap seeds | = ae | ca inp00 Statics “0 becouse 225500 Aecouns pie Fag fecal ‘ne i Capit ‘Bec stsexpedinanerenlon ke oeresabes No ober aus thera se esr! recs However he Ue pare among Senses ma ig elle cpl acount agree 8 Ue np Whtanou usteiavesodby Gree? Praag. Pisa, © Puasa a Puasa, “Tewari bane amarillo P50 000 and an allowance of P2502 | ut emt Bioe-Cung nore het $19: OnApai 27,2016 capita aecmetsof XK, YY. and ZZshows te lows =a wv 23000 Zz iso “Austme Wa adnan ben pra xone shinee it ‘Ault Pay iho panes equate opi mstnens, a ee retoopetodvigroitsandlases qual The pee pctv: stools onlone 3,20 orparungaprestol 2.60) armen tater tne th lowing wba: XX 30827, 7750 ‘woman ahd WW, 1:00 por mon On June 30,2016, WW ives ‘agheah onesie nn neshiinrestin te How mucbeadisabelnveeaty WW"? 18.755 ‘bat: Decener 31,2016 condense statement official postion of ABC Panes peed bc “Toa es eos) Payable A P 3000 Coat 30 Recap 19330 Cia 5000 Tat somo ‘AB, and © she polis ad ose Ine rato of 25%, 2% and 50% eb, lmaapoadanen earn az Aretres enh sp he paesp santo fej cedto tif market lu of 102.00) ‘Sut DecomberS), 2016 The patetship woul pay AP3,230 cash for is ‘Galimeesinte prmaship. Wott cptal lace of Baie erect GTA ssusnngth we ofte paral pod need andtbeboms neo? Partie Gootit Bonus ‘Method Method PBa0 P1780 pao 20730 5 Bae 3700 i a0 iho2s ee rere aan racennemrentl ne a, rsp tao ena SO Si rete e Een Pimms 95 000i sleet oii a ne a ete Tepes cfnm aR Sree Pee oes Sua a Pragpoo P08 1k pisgooo——Paszade © prorooo 234000 i Prem 723600 4.22 Jey Kaye's ial postions Deter, 2p rooredte lowing eal “ricoeeo Tolan 000 sca oo Koil aon ‘Onda 2016 aay ded herpes ans at ‘cs aiestane ome coporson. Ath dit ofimcarrain the ir alco tac ae 2000 more than thecarying ambuten theprorap soak of whic P7000 vasessipned to tangbleasset and 500 waeassoea pel ay and Kay were each sued S00 sas fe crpran'sP par ale conmon Sock. Immediately flowing incre tol uidincptal excess par should bere er Pesow & Pro © P7000 Pada eee 1 folowing 14, Aleand ey is it ear of pean wi 32%: OnMac 1.20 chinese esse ae re bs 10000, ‘Taepartoesae tale profisand losses flows: ‘Aa ad Baty wil be allowed monly sary of Pa ato respecte Fe wedi ote ess stastepaninget ch ar «Tipe nttedranonieesttiringcin re eset pen adult seu Bersalin upt P20 a Yu Any + Etch prin is allowed tw cae re cxonsoftie gue wil be ested asadetedoton om tie Palaces #000 and sof 36000, Butin2015they eared eth masram amount om tester ox Onfray 2, 2016 anew pater, Coase {Ge paracapovaninvexnt of 0.00 fra ites, Norevauton ‘Stacsstobe cero fer theadmision of Cre paterssaeed to ive potis nd ose 424 to Alma, Bety and Com respectively 201th prteeip sued ts hsp 13000 The rt °° eimary 22016 his te entry record the wdision of Cor? ‘aC Alma, Capita 2 ey, Capt Cora, Capa ana at “ia Fora, Capital rr Cash ‘ionso0 jen Fel, i, “32.000, eh Cita 16500 (Cora, Capt oa 4 Cask llaee ‘Cora, Capital lassieTheta ae agent egestas a ae aan oe iis a See ame a ra - Se Ta nova punt ase 9 Cans ssctitsiefe my ins be ie i soo : | ea nto ibe Eo eG emteems berate) Peete | ice cert ic eta es ae eh amera pease cane moan eet Cel 2 eon bees thea. Shinar ‘Wejosalenysmuldkave bended th partnership onary), ar qc nest co octet 10 Peo a Cash 3000 ‘Samy, Cpt 22,000 ‘ete, Copal cee Cares, Capit “a A Cah ‘006 ‘Sam, Coit eae Cat ae Pete, Capit ae Carles, Capi ae ‘Sam, Copal aa Cut 32.000 eons 32,000 13.2; On vga} 205, Mara and Ana fomed bi ot Snel e300 we Ame 0004 seater Janda fair value of 1,250,000. ache athe ope wor asm “Thepannesagjeto alate profs and lossesas ols: 1. apr saleeive inert onberbegining capil lane, 2 Mailed sala of 000 er month for managing te bins 5, Theremsndr wile ved equl others yearofoperton 60 ano sOleon suerte: 4, Navan nals alowed ila P5(000prenenth Any wiireval iste as dee edoton epi n201S the antares neincome of 100,000. Oe uly 1, 2016, Paz ‘tsadnidin te pemepy invesingP80.00fera.25 etre pool Istoberecoled Aferaimissonof Par, the panersredtn dive rf, 5 oo: 1. Exhpune tallied Minreston he amount ofr bexioringcatl, 2. Alpe willeeived aly of P2000 permonth 5, Thetalaceo bedivied 45% to Maia, 30% to Anaend25%to Paz 4 Eschparer eae wil P2,000 per month Any withdrawals tres as adietrodcton esp. 1n2016,teparnrsipcamed profit oP30,00 evenly througout the yer Hom chsh cpt taane of Mara at December 31,2016 rounded 0 thepearst peo)? a Pro7s 1h 68485 fe, Pe7as3 Proaz03See, raeaeonteanas, sacpennane nena tema oN ns 132 Peso ofDecebe no FS eee aloe FRveaanretvaeinexeseronk ng oops lon a iS iene es Waray i x 200m troegpoivi seedy eabsisont Waren ove he or towauchinebehae? =) P4000 & pnw Pisa a rso00 3.21; Ame (A) Bea (Band aa) ae partes sl ang fg ‘octets ls: st = ae coat zs ae ne ah Sn. a! a as Se = 2 = He | 153 emi Dianne nner ft $$ “Teprneip serena forte aeation of fs 14. of 30000, 39,00, and P0000, rapt 2, Bommio AoflUseofntiname arth bon 2 on ta alleen poses peerage S776 ‘ova 3% for Band Crepes ax ges flows: ive 1, Salis tA, Ba » it Ufo bis finds teint ies: anu pots ean ean eaieP132,00, odor eaptl is cede tance epee ‘inches tos competi nda iit wiles once an gto aque 30% interest inthe met hich cals forthe ‘Cora ina (D2 Ierestin th partners. Daas roost ‘Spin oftprterep aid evise pasts se ‘Sion sfpetisastllos: 90, P40, 000, and 30,000, 1. Satis to AB, C,andD of P3000, PF pete 2, BonustoD of P20,00ifeet income exceeds P25, 000. 5) Remnng nouns alls eeonig profi percentage 30%, 10% 30% and 3094 for A, B,C, andD spectively. Assuming you are Be'sperzna CPA, youbsve asked to provide yourclet ‘sth pong issonofDinn. Baxdhsnoteveitwoaldbe worth adnitanepareriieshellaton| finned yas PIOOOO overt wich existed te ogi artnership agreement. Wht would the average annual profit of the new Partehiphavetoe sore for Beato accel he ide of ming anew . Praa00 & pi2qo0o © P29n000 ft Paanoo0| se See, cfd ei serteetasetesel ny 30h gt 7 ali HOA a uo & Piao © Pao a Piso minanciesing osu company serena cna alge 232% Ansan eo ep fered e580 hee me Se ee aa Oa Fiano esse: Beles eae eat ie Tie —* vaaoo0o Pa Tonal no Pe topner-ne ‘m0 "itty ee = 90 000 Inaddinto ind set earth he company hs an conpanyenoyseatongcla tse andi anastasia ny Csisinzesinen seviemetloing COMPS With Ang SaISEa Caos ort esto be coved the parterhip include ge. Sloore ai Fa Were 0000 set ‘an "sa nite ee cate ee ei #30 nce een pater MomvaicabwadCsistivocattaco benny 2 Pozo pao © Paso Paaooo Se 135 pone he Cincom ona 52ntioandiavethe nose pares, = oon 9000, and 25 faced to te partnership BY fie Theol neste © ‘330 Lan Mi rte Felowing eptl accout Fearon gser 0s Fore Jed however ale following eos Wer THEE en 1s Utscptsmeten wpatyerend rasresttoMina or P100,000. After wich yo dD equal 00g ‘ana, 2016 Lina soldi Nina wiht PLO,000 ‘na Nn and Olprapredio hare onal rts THemelves Dung 2016 Mina wade 720,000 plore P50 “thc of 2017, Min died to ete fom th paneship and was aid ‘BIE Se ch sgn thenvetioy witha book value of 50.000 ‘chine ores irs of P25 000 andthe [Dherecopie Netcom forth years P1980 1. Warsi stare of pre Linin te 2015 comet ne income? 2 Paw piso © P1920 page 2. Whstste capil tance of Mion December 31,2015? ions paseo P3893 P0300SES 136 See ia ; December 31,2016? 5, Witichcaptbln oO a Pisigm & pinan © Pusgl0 & pursoo «weston ofan ese 31,2017? rama pang Pasnos 03800 ‘bat: Dariscosdeing mesg noe fee exiting partes ani epider apie ites nade, ornare rite eee ncers na ed Peon eeciing ers ar charted flows: a BB ce Teale okvae souom 600000 Fa00R00 Pe Mecdngensiy “Ash 72500 BSN) amiccnberemctinaie 3250 510010 55800) Tes be ied by en incl 3% 8% ow tna es ow ‘Whats be amount Daa seul veto conve none baspuenineretinenholthepartsis? rit Be ce beste P7000 bp sesio ie Puasa ie Fueir 7000 eee 1st and el valerate 2 2.3% Mayas Rian en prs forsee ea devon: ig na aes ranpon Pinon 6008 fonasonet come Ss Pot ol pees iS moto copies December 31,2014, P5000 Natasa ae of December 31,2014 Aibirsloe 1n2015,hepartrersirepredanet income of 7230000 and each are re eresa 00,000 dition yerend On Janu 1, 2016, Hare was CESSES paneby esting 70.00 fra 25% inerestincapial Coody) ‘Srropincdopnadisin, The roftsturing agreement was ida ‘SS aralay of 7,000 anda boos of 9% of et income for Hare, The iano erent were as vised 10 30%, 459% and.25% for Mays, Fin ada respectively. Dating 216 the prerhip recognize income ofP30,000 nd disbut Paty neck pare during th year Oa Janay 1, 2017, Mayasold her Fnterestnb presto Rta for P2000. The yeu 2017 was tansion Senrforhe partnership and Rian Hera agree o share anual profits of Foon 0 ely between themselves Dring 2017, Rita and Hara withdrew P.O and 8000, especie, om the partes Ar thbegiing of 201, ia cided to ellis ierest inthe parersip the presi for PS0,00 was agreed that net sets with book valu of PAIS 000 woul ait a eet tif valu gf P405,000 nd tha the fle woulte recorded byte etd wey only gaodltcrableto Rita ‘wuldberecopnzed 50,000 Inmestey aftr Ris etrement, Pea purchased a 40% interest inthe armen combing PTS 000seer” 18 One, Ne B82 Comined ito ssl provisions ent inate ry TS SON fe tee ad Fes a HE “ ce PImo00 @ purats 2b waist capinl ie of Rison Deer 31, 20167 2 puTaTS & passes eps a PISA 4, Whiten alae of Haron Deere, 20172 fe PIsats & asars | 5 Pas a prsts | | | ‘Weise cpl ofeach fete anisson of Pea? a Puess7s & pisrso 6 PIas500 a Pima ett 19 pot tn vere ag psa 532 SPS ‘5: Mom, opant Soa Ma aner 206 ui copia nes We 997,500 Mam Pop ‘0000 so 30.000 ondary, 2017, th pares ite Dade raat bad wilco P40 00 we pptOs 00 er 1st Pos sha. Da eS sie niin pares’ ste will = CPO To eran of Dt xpi il PF split 735,00, ow panes and acorn hot parnesbipad Ibe gvena20%shareis onal he ie a fs and Das 1. Wats teast revi? 231,000 P 73500 is7s00 Pana soo 2, Whitsthetomsin te asin ofa? = P6300 puss00 fe PIz6000 4 P3100