Capital P/L Ratio

A P30,000 40%

B 50,000 60

P80,000 100%

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Goodwill to Old / Bonus to Old

Solution

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C invests P18,000 for a 15% interest in the agreed new capital of P100,000

ANC 100,000 x 15% CC 15,000

TCC (80,000+18,000) 98,000 AI 18,000

Goodwill 2,000

Bonus 3,000

Journal Entry

Goodwill 2,000

Cash 18,000

A, Capital (2,000 x 40%) 800

B, Capital (2,000 x 60%) 1,200

C, Capital 18,000

Bonus 3,000

Cash 18,000

A, Capital (3,000x40%) 1,200

B, Capital (3,000x60%) 1,800

C, Capital 18,000
Goodwill to New / Bonus to New

Solution

C invests P14,000 for a 25% interest in the agreed new capital of P100,000

ANC 100,000 x 25% CC 25,000

TCC (80,000+14,000) 94,000 AI 14,000

Goodwill 6,000

Bonus 11,000

Journal Entry

Goodwill 6,000

Cash 14,000

A, Capital (5,000x40%) 2,000

B, Capital (5,000x60%) 3,000

C, Capital 25,000

Cash 14,000

A, Capital (11,000x40%) 4,400

B, Capital (11,000x60%) 6,600

C, Capital 25,000