1

10
Excercise 4-1
1. 1
2. 0
3. 1
4. 1
5. 1
6. 1
7. 0
8. 0
9. 0
10. 1

Exercise 4-2
1. DISSOLUTION
2. LIQUIDATION
3. CAPITAL ADJUSTMENT
4. CONTRIBUTED CAPITAL
5. FRACTION OF INTEREST
6. TOTAL AGREED CAPITAL
7. BONUS
8. LEGAL HEIRS OR REPRESENTATIVE
9. TOTAL CONTRIBUTED CAPITAL
10. PERCENTAGE INTEREST

Exercise 4-3
1. D
2. C
3. C
4. B
5. B
 6. D
7. C
8. C
9. A
10. B
a. Benedict Scholastica
Capital Balances before Odilo's admission 1,260,000 540,000
Less: Interest sold to Odilo
1,260,000 x 50% 630,000
Capital after Odilo's admission 630,000 540,000

PARTICULARS P/R DEBIT CREDIT

Benedict, Capital 630,000
Odilo, Capital 0 630,000
To record admission of partner Odilo

b. Benedict Scholastica
Capital Balances before Odilo's admission 1,260,000 540,000
Less: Interest sold to Odilo
540,000 x 20% 108,000
Capital after Odilo's admission 1,260,000 432,000

PARTICULARS P/R DEBIT CREDIT

Scholastica, Capital 108,000
Odilo, Capital 0 108,000
To record admission of partner Odilo

c. Benedict Scholastica
Capital Balances before Odilo's admission 1,260,000 540,000
Less: Interest sold to Odilo
1,260,000 x 30% 378,000
540,000 x 30% 162,000
Capital after Odilo's admission 882,000 378,000
 PARTICULARS P/R DEBIT CREDIT
Benedict, Capital 378,000
Scholastica, Capital 162,000
Odilo, Capital 540,000

d. Benedict Scholastica
Capital Balances before Odilo's admission 1,260,000 540,000
Less: Interest sold to Odilo
1,260,000 x 25% 315,000
540,000 x 25% 135,000
Capital after Odilo's admission 945,000 405,000

PARTICULARS P/R DEBIT CREDIT

Benedict, Capital 315,000
Scholastica, Capital 135,000
Odilo, Capital 450,000

e. Benedict Scholastica
Capital Balances before revaluation 1,260,000 540,000
Add: Upward asset revaluation (30,000-20,000)
10,000 x 70% 7,000
10,000 x 30% 3,000
Capital after Odilo's admission 1,267,000 543,000

Benedict Scholastica
Capital Balances before Odilo's admission 1,267,000 543,000
Less: Interest Sold to Odilo
1,262,500 x 25% 316,750
542,500 x 25% 135,750
Capital after Odilo's admission 1,583,750 678,750
 PARTICULARS P/R DEBIT CREDIT
Benedict, Capital 316,750
Scholastica, Capital 135,750
Odilo, Capital 452,500
a. Micheal Gabriel
Capital Balances before Odilo's admission 400,000 200,000
Less: Interest sold to Rafael
200,000 x 25% 100,000
200,000 x 25% 50,000
Capital after Odilo's admission 300,000 150,000

PARTICULARS P/R DEBIT CREDIT

Michael, Capital 100,000
Gabriel, Capital 50,000
Rafael, Capital 0 150,000
To record admission of partner Odilo

b. Partners Original P&L Contributed Capital Agreed Capital New P&L

Michael 2:1 400,000 400,000 50%
Rafael 1:2 200,000 200,000 25%
Gabriel 200,000 200,000 25%
Total 100% 800,000 800,000 100%

PARTICULARS P/R DEBIT CREDIT

Cash 200,000
Gabriel, Capital 0 200,000
Rafael, Capital 200,000
To record admission of partner Rafael

c. Partners Original P&L Contributed Capital Agreed Capital New P&L

Michael 2:1 400,000 397,500 53%
Rafael 1:2 200,000 202,500 27%
 Gabriel 150,000 150,000 20%
Total 100% 750,000 750,000 100%

PARTICULARS P/R DEBIT CREDIT

Cash 150,000
Gabriel, Capital 150,000
To record admission of partner Rafael

d. PARTICULARS P/R DEBIT CREDIT

Michael, Capital 133,333
Rafael, Capital 66,667
Gabriel, Capital 200,000
To record admission of Gabriel
No Bonus

No Bonus
-
 Partners Original P&L Contributed Capital Agreed Capital New P&L Bonus
Francis 2:1 800,000 850,000 50% 50,000
Charles 1:2 400,000 425,000 25% 25,000
Philipp 500,000 425,000 25% -75,000
Total 100% 1,700,000 1,700,000 100%

PARTICULARS P/R DEBIT CREDIT

Cash 500,000
Philipp, Capital 425,000
Charles, Capital 25,000
Francis, Capital 50,000
To record admission of partner Philip
 Partners Original P&L Contributed Capital Agreed Capital New P&L Bonus
Maffy 70% 700,000 630,000 42% -70,000
Luz 30% 300,000 270,000 18% -30,000
Rose 500,000 600,000 40% 100,000
Total 100% 1,500,000 1,500,000 100% -

PARTICULARS P/R DEBIT CREDIT

Cash 500,000
Maffy, Capital 70,000
Luz, Capital 30,000
Rose, Capital 600,000
To record admission of partner Rafael
 Partners Original P&L Contributed Capital Agreed Capital New P&L
Ignatius 50% 300,000 300,000 40%
Francis 20% 100,000 120,000 16%
Peter 30% 200,000 180,000 24%
Martin 150,000 150,000 20%
Total 100% 750,000 750,000 100%
 Partners Original P&L Contributed Capital Agreed Capital New P&L
Jude 3:2 588,000 468,000 48%
Isidore 2:3 192,000 312,000 32%
Anthony 195,000 195,000 20%
Total 100% 975,000 975,000 100%

Jude Isidore
Capital Balances before revaluation 600,000 200,000
Less: Downward asset revaluation (120,000-100,000)
20,000 x 3/5 12,000
20,000 x 2/5 8,000
Capital Balances after revaluation 588,000 192,000
 Partners Original P&L Contributed Capital Agreed Capital New P&L Bonus
Joe 50% 500,000 520,000 40% 20,000
Efren 20% 200,000 208,000 16% 8,000
Rene 30% 300,000 312,000 24% 12,000
Milet 300,000 260,000 20% -40,000
Total 100% 1,300,000 1,300,000 100%
 Partners Original P&L Contributed Capital Agreed Capital New P&L Bonus
Clare 50% 195,000 216,000 40% 21,000
Agnes 50% 170,000 216,000 40% 46,000
Bernadette 175,000 108,000 20% (67,000)
Total 100% 540,000 540,000 100%

Clare Agnes
Capital Balances before revaluation 150,000 125,000
Add: Income 90,000
90,000 x 1/2 45,000
90,000 x 1/2 45,000
Capital Balances after revaluation 195,000 170,000
 Partners Original P&L Contributed Capital Agreed Capital New P&L Bonus
Timothy 60% 800,000 720,000 45% -80,000
Paul 40% 400,000 480,000 30% 80,000
Luke 400,000 400,000 25% 0
Total 100% 1,600,000 1,600,000 100%
 PARTICULARS P/R DEBIT CREDIT
Mary, Capital 80,000
Therese, Capital 60,000
Catherine, Capital 400,000
Anne, Capital 40,000
Cash 580,000
 PARTICULARS P/R DEBIT CREDIT
Hazel, Capital 55,000
Cash 50,000
Pia, Capital 2,000
Yza, Capital 30,000
withdrawal of Hazel
Revaluation of Land
Amount paid to John 200,000
Less: John Capital 140,000
Upward asset revaluation 60,000
Capital share of John 1/3
Total Asset Revaluation (Land) 180,000

Recorded Increased Fair Market Value

PARTICULARS P/R DEBIT CREDIT
Land 180,000
Joachim, Capital 90,000
John, Capital 60,000
Johh, Capital 30,000
Total Revaluation of Assets

Withdrawal of John
PARTICULARS P/R DEBIT CREDIT
John, Capital 200,000
Cash 200,000
To record withdrawal of John
Amount paid to Mark 400,000
Less: Mark, Capital 340,000
Downward asset revaluation 60,000
Capital share of Mark 1/3
Total Asset Revaluation 180,000

Recorded Increased Fair Market Value

PARTICULARS P/R DEBIT CREDIT
Mark, Capital 60,000
Matthew, Capital 60,000
James, Capital 60,000
Cash 180,000
Total Revaluation of Assets

Withdrawal of Mark
PARTICULARS P/R DEBIT CREDIT
Mark, Capital 340,000
Cash 340,000
To record withdrawal of Mark