GIVEN:

B1, Capital 150,000.00

B2, Capital 50,000.00
Total CC of old parnters 200,000.00

Profit and loss sharing ratio 3:1

CASE 1: C2, new partner is admitted to the partnership by investing P50,000 for 1/3 interest in the partnership.
The new agreed capital of the partnership will be P300,000.

AC CC Goodwill
Old parnters (B1 and B2) 200,000.00 200,000.00 -
New partner (C2) 100,000.00 50,000.00 50,000.00
300,000.00 250,000.00 50,000.00

Cash 50,000.00
B1, Capital 37,500.00
B2, Capital 12,500.00
C2, Capital 100,000.00

CASE 2: C2, new partner is admitted to the partnership by investing P100,000 for 1/3 interest in the partnership.
The new agreed capital of the partnership will be P300,000.

AC CC Difference
Old parnters (B1 and B2) 200,000.00 200,000.00 -
New partner (C2) 100,000.00 100,000.00 -
300,000.00 300,000.00 -

Cash 100,000.00
C2, Capital 100,000.00

CASE 3: C2, new partner is admitted to the partnership by investing P50,000 for 30% interest in the partnership.
The new agreed capital of the partnership will be P250,000.

AC CC Bonus
Old parnters (B1 and B2) 175,000.00 200,000.00 - 25,000.00
New partner (C2) 75,000.00 50,000.00 25,000.00
250,000.00 250,000.00 -

Cash 50,000.00
B1, Capital 18,750.00
B2, Capital 6,250.00
C2, Capital 75,000.00
CASE 4: C2, new partner is admitted to the partnership by investing P90,000 for 1/3 interest in the partnership.

If Asset Revaluation Method:

AC CC Asset Rev.
Old parnters (B1 and B2) 180,000.00 200,000.00 - 20,000.00
New partner (C2) 90,000.00 90,000.00 -
270,000.00 290,000.00 - 20,000.00

Cash 90,000.00
B1, Capital 15,000.00
B2, Capital 5,000.00
Other assets 20,000.00
C2, Capital 90,000.00

If Bonus Method:
AC CC Bonus
Old parnters (B1 and B2) 193,333.33 200,000.00 - 6,666.67
New partner (C2) 96,666.67 90,000.00 6,666.67
290,000.00 290,000.00 -

Cash 90,000.00
B1, Capital 5,000.00
B2, Capital 1,666.67
Other assets 6,666.67
C2, Capital 96,666.67
nterest in the partnership.

interest in the partnership.

interest in the partnership.

nterest in the partnership.