Sir Win – Accounting Lectures

Jokes Tagalog
Stories Legit Professor
Life Lessons

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Lecture 05: Partnership Dissolution – Admission
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Pardilla and Tan are partners in Nayon Partnership with capital balances
of P550,000 and P350,000, respectively; they share income and loss in the
ratio 1:3, respectively. The partners are considering the admission of
Conde.

Required:

Prepare the entries to record the admission of Conde under each of the
following independent situations:

1. Conde invested P100,000 cash in the partnership for a one-tenth

interest. The net assets of the partnership are fairly valued.
2. Conde invested P140,000 cash in partnership for a one-eight interest.
Assets of the partnership are fairly valued except for equipment,
which is undervalued by P80,000. Net assets of the partnership are to
be revalued and Conde is to be admitted.
3. Conde is to receive a one-tenth interest in the partnership upon
investing P180,000 cash. Net assets of the partnership are fairly
valued.
4. Conde is to receive a 20% interest in the partnership upon investing
P200,000 cash. Net assets of the partnership are fairly valued.