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Final Term Assignment 3 on Financial Accounting and Reporting – Partnership Dissolution

Problem: ( 50 points ): Angel and Damon are partners with capital balances of P25,000 and P50,000,
respectively. They share profits in the ratio of 4:6. Mark is to be admitted as a partner by making an
investment. The agreed new capital after the admission of Mark is to be P100,000. The new profit and
loss sharing ratio is 3:4:3.

Required: For each of the following independent cases below, make compound entries in journal
form.

a. Mark invests P25,000 for a ¼ interest in the new capital.

b. Mark invests P20,000 for a 1/5 interest in the new capital.
c. Mark invests P20,000 for a ¼ interest in the new capital.
d. Mark invests P25,000 for a 1/5 interest in the new capital.
e. Mark invests P25,000 for a 30% interest in the new capital.