Sir Win – Accounting Lectures

✓ Jokes ✓ Tagalog
✓ Stories ✓ Legit Professor
✓ Life Lessons

--------------------------------------------------------------------------------------------------------------
Lecture 05: Partnership Dissolution – Admission
--------------------------------------------------------------------------------------------------------------

Diala, Austria, and Tamayo are partners in Lavander Company.

Their capital balances as at July 31, 2021, are as follows:

Diala, Capital Austria, Capital Tamayo, Capital

450,000 150,000 300,000

Each partner has agreed to admit Miranda to the partnership.

Required:

Prepare the entries to record Miranda’s admission to the

partnership under each of the following conditions:

a. Miranda paid Diala P125,000 for 20% of Diala’s interest in the

partnership.
b. Miranda invested P200,000 cash in the partnership and
received an interest equal to her investment.
c. Miranda invested P300,000 cash in the partnership for 20%
interest in the business. A bonus is to be recorded for the
original partners on the basis of their capital balances.
d. Miranda invested P300,000 cash in the partnership for 40%
interest in the business. The original partners gave Miranda a
bonus according to the ratio of their capital balances on July
31, 2021.