Sir Win – Accounting Lectures

Jokes Tagalog
Stories Legit Professor
Life Lessons

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Lecture 05: Partnership Dissolution – Admission
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Diala, Austria, and Tamayo are partners in Lavander Company. Their

capital balances as at July 31, 2021, are as follows:

Diala, Capital Austria, Capital Tamayo, Capital

450,000 150,000 300,000

Each partner has agreed to admit Miranda to the partnership.

Required:

Prepare the entries to record Miranda’s admission to the partnership under

each of the following conditions:

a. Miranda paid Diala P125,000 for 20% of Diala’s interest in the

partnership.
b. Miranda invested P200,000 cash in the partnership and received an
interest equal to her investment.
c. Miranda invested P300,000 cash in the partnership for 20% interest in
the business. A bonus is to be recorded for the original partners on the
basis of their capital balances.
d. Miranda invested P300,000 cash in the partnership for 40% interest in
the business. The original partners gave Miranda a bonus according to
the ratio of their capital balances on July 31, 2021.