50% of Capital of Bonnie

50% of Capital of Daisy

a Debit Credit
Daisy Capital 160000
To Maggie's Capital 150000
To Maggie's Current Account 10000

b
Bonnies Capital 200000
Maggie's Current Account 50000
To Maggie's Capital 250000

c
Daisy Capital 160000
Maggie's Current Account 40000
To Maggie's Capital 200000

d
Bonnies Capital 200000
Daisy Capital 160000
To Maggie's Capital 300000
To Maggie's Current Account 60000
a Debit Credit
Account Receivable 102,000
Pen, Capital 41,747.27
May, Capital 60,272.73

Inventory 258,000
Pen, Capital 105,545.45
May, Capital 152,454.55

b Wen will pay 97,500.00

c May, Capital 97,500

Wen, Capital 97,500

d Pen, Capital 450000

May, Capital 650000x40% -97,500
Wen, Capital 97500
Total Equity 1100000

e Partners Original shar Transfer or s Revised Profit earned

Pen 40% 40% 320000x40%
May 60% -40% 20% 320000x20%
Wen 40% 40% 320000x40%
100% 100%
 450000
552500
97500
1100000

Profit Share
128000
64000
128000
320,000
a Existing EquitRevaluation Equity after revaluation
Pen, Capital 450000 147272.72 597272.72
May, Capital 650000 212727.26 862727.28
Total Equity 1100000 360000 1460000

b Wen, should invest 345,090.91 for a 40% share in partnership.

c Debit Credit
May, Capital 345,090.91
Wen, Capital 345,090.91

d Existing EquitTransfer Revised

Pen, Capital 597272.72 597272.72
May, Capital 862727.28x4 -345,090.91 517636.37
Wen, Capital 345,090.91 345,090.91
Total Equity 1460000 1460000

e Partners Original shar Transfer or s Revised

Pen 40% 40%
May 60% -40% 20%
Wen 40% 40%
100% 100%
8
a Debit Credit
Cash 500000
Pen, Capital 36000
May, Capital 54000
Wen, Capital 410000

1 Pen 40% 450000 16,000 466000

May 60% 650000 24000 674000
Total 100% 1100000 40000 1140000

Partners Total Contributed Capital Bonus Total Agreed Capital

Pen 466000 36000 502000
May 674000 54000 728000
Wen 500000 -90000 410000
Total 1640000 1640000

2 Wen's contributed capital is 500,000 is greater than his agreed capital which is 410,000, the difference of 90,000 is

b Debit Credit
Pen, Capital 96000
May, Capital 144000
Non-current Assets 240000

Cash 300000
Wen, Capital 300000

1 Partners Total Contributed Capital Bonus Total Agreed Capital

Pen 466000 -96000 370000
May 674000 -144000 530000
Wen 300000 300000
Total 1440000 -240000 1200000

2 The total contributed capital is higher than the total agreed capital, and therefore a downward revalutaion should b

The difference is of 240,000 is allocated to old partners according to their profit and loss ratio.
, the difference of 90,000 is attributable to bonus to old partners and allocated according to their old profit and loss ratio.

wnward revalutaion should be recognized.

and loss ratio.
a Debit Credit
Land 300000
Romy, Capital 300000

b Land 300000
Romy, Capital 300000

Fiona, Capital 35000

Gary, Capital 25000
Romy, Capital 60000

c
Land 300000
Goodwill 100000
Romy, Capital 400000

d
Land 300000
Fiona, Capital 270000
Gary, Capital 17500
Romy, Capital 7500

e
Land 300000
Goodwill 100000
Romy, Capital 400000