•Carmilla and Cecilion share profits and losses

on a fractional-share basis with two-fifths for

 Camilla and three-fifths for Cecilion. This
year, the firm has a profits of P650,000. The
beginning capital balances for the year were
P900,000 for Carmilla and P1,300,000 for
Cecilion. The balances of the drawing
accounts are P300,000 for Carmilla and
P240,000 for Cecilion.
•Journalize the entries to close income
summary and the partners’ drawing accounts
on December 31.
•After the tangible assets have been adjusted to
fair values, the capital accounts of Hayabusa and
Kagura have balances of P75,000 and P125,000,
respectively. Hanabi is to be admitted to the
partnership, contributing P50,000 cash to the
partnership, for which she is to receive an equity
of P65,000. All partners share equally in profit.
•Prepare the journal entry to record the admission
 of Hanabi who is to receive a bonus of P15,000.
•Calculate the capital balances of each partner
after the admission of the new partner.

• Harley is retiring from the partnership of Harith,

Nana, and Harley. The profit and loss ratio is 2:2:1,
respectively. After the accountant has posted the
revaluation and closing entries, the credit balances
in the capital accounts are: Harith, P530,000;
Nana, P430,000; and Harley, P210,000.
•Journalize the journal entries to record the
retirement of Harley under each of the following
unrelated assumptions:
1. Harley retires, taking P210,000 of partnership
cash for his equity.
2. Harley retires, taking P270,000 of partnership
cash for his equity.