Real property tax payable Partner 1, Capital Partner 2, Capital Variation #1 Solutions: Requirement (a) and (b): Total net asset contributions Divide by: Equal credits to capital accounts 40,000 2,941,250 1,824,343 4,765,593 2 Partner? Equal credits to capital accounts 2,382,796 Fair value of net asset contribution Answers: Partner 2 recelves a bonus of P558, 2,941,250 (558,454) 154 riner 2 2,382,795 1,824,343, Requirement (c): The bonus is treated as an adjustment to the equity accounts of the partners. Pariner 1's capital shall be decreased while Partner 2's capital shall be increased by the P58, 454 bonus. Requirement (4): Cash 2,081,250 Accounts receivable 1,230,000 Land 1/500,000 Building 1,400,000, ‘Accounts payable Notes payable Provision for probable loss Real property tax payable Partner 1, Capital Partner 2, Capital Variation #2: Solutions: Requirement (a): Total net asset contributions Divide by: Equal credits to capital accounts 730,000 375,657 300,000 40,000 2,382,796 2,382,796 4,765,593 2,382,796 This documentis avaiable tee ofcharaeon GEYDOCU.COM Downloaded by mr. Vera (lira ail Ja@leu.edu.phPartner 1 Partner 2 Equal credits to capital accounts 2,382,786 2,382,796 Fair value of net asset contribution 2.941.250 1,824,343, (Receipt) Payment (958,454) 558,454 Answer: Partner 1 shall receive cash of P558,454 from Partner 2. Requirement (b): ‘The cash receipt and cash payment are nat recorded in the partnership books, Requirement (c): Cash 2,081,250 Accounts receivable 1,230,000 Land 41,500,000 Building 1,400,000, ‘Accounts payable 730,000 Notes payable 375,657 Provision for probable loss 300,000 Real property tax payable 49,000 Partner 1, Capital 2,382,796 Partner 2, Capital 2,382,796 Variation #3: Solutions: Requirements (a) and (b): Total net asset contributions 4,765,593 Divide by: 2 Equal credits to capital accounts 2,382,796 Using first Partner 1's capital, let us determine if Partner 2’s capital contribution has any deficiency Partner 1, Capital 2,941,250 Divide by: Partner 1's equity interest 50% Total 5,882,500 Multiply by: Partner 2's interest, 50% Minimum capital required of Partner 2 2,941,250 Partner 2's capital 1,824,343 6 Downloaded by mr. Vea (ira alae. edu ph)Deficiency on Partner 2's capital contribution Answer: Partner 2 should provide additional cash contribution of 1,116,907 to make his contribution proportionate to his/her interest. Using Partner 2's capital, let us determine if Partner 1's capital contribution has any deficiency. Pariner 2, Capital 1,824,343 Divide by: Partner 2's equity interest 50% Total 3,648,685 Multiply by: Partner 1's interest 50% Minimum capital required of Partner 1 1,824,343 Partner 1's capital 2,941,250 Deficiency on Partner 1's capital contribution = Conclusion: Partner 1’s contribution is not deficient. Variation #4: Solution: Total net asset contributions 4,765,593 Divide by: Equal credits to capital accounts 2,382,796 Partner? Partner 2 Equal eredits to capital accounts 2,382,798 2,382,795 Fair value of net asset contribution 2,941,250 1,824,943 558,454 ‘Additional investment Answer: Partner 1 shall withdraw 558,454 while Partner 2 shall make an additional investment of P558,454 This documentis avaiable tee ofcharaeon GEYDOCU.COM Downloaded by mr. Vea (ira aila@ edu ph)