Chapter 12 - Partnership

Illustration 12 A-1, Page 12-18

Dissolution - Admission of a new partner by purchase of interest: General Journal
1/3 Date Description Debit Credit
C. Ames D. Barker L. Carson Total 2020
Capital before admission ₱30,000 ₱30,000 ( - ) ₱60,000 January 1 C. Ames, Capital ( 10,000)
1. Admission of L. Carson by purchase ((10,000) ( (10,000) ₱20,000 D. Barker, Capital ( 10,000)
Capital after admission ₱20,000 ₱20,000 ₱20,000 ₱60,000 L. Carson, Capital ( 20,000)
Admission by purchase of interest.

Illustration, Page 12-19

Dissolution - Admission of a new partner by investment: General Journal
1/3 Date Description Debit Credit
C. Ames D. Barker L. Carson Total 2020
Capital before admission ₱30,000 ₱30,000 ( - ) ₱60,000 January 1 Cash ( 30,000)
2. Admission of L. Carson by investment ₱30,000 ( 30,000) L. Carson, Capital ( 30,000)
Capital after admission ₱30,000 ₱30,000 ₱30,000 ₱90,000 Admission by investment.

Illustration, Page 12-20

Dissolution - Admission of a new partner by investment: General Journal
Bonus to old partners 25% Date Description Debit Credit
Ahn Yoo Joo Hyuk Jang Sung Total 2020
Capital before admission ₱30,000 ₱30,000 ( - ) ₱120,000 January 1 Cash ( 80,000)
Admission of Jang Sung by investment ₱80,000 ( 80,000) Ahn Yoo, Capital ( 18,000)
Bonus to old partners ( 18,000) ( 12,000) ( (30,000) Joo Hyuk, Capital ( 12,000)
Capital after admission ₱48,000 ₱42,000 ₱50,000 ₱200,000 Jang Sung, Capital ( 50,000)
Admission by investment.

Illustration, Page 12-21

Dissolution - Admission of a new partner by investment:
Bonus to new partner 25% General Journal
Ahn Yoo Joo Hyuk Jang Sung Total Date Description Debit Credit
Capital before admission ₱30,000 ₱30,000 ( - ) ₱120,000 2020
Admission of Jang Sung by investment ₱20,000 ( 20,000) January 1 Cash ( 20,000)
Bonus to new partner ( (9,000) ( (6,000) ( 15,000) Ahn Yoo, Capital ( 9,000)
Capital after admission ₱48,000 ₱42,000 ₱35,000 ₱140,000 Joo Hyuk, Capital ( 6,000)
Jang Sung, Capital ( 35,000)
Admission by investment.
Illustration, Page 12-22
Dissolution - Withdrawal of a partner by payment from partners' personal assets:
General Journal
W. Ma L. Wenyin Z. Hejun Total Date Description Debit Credit
Capital before withdrawal ₱25,000 ₱15,000 ₱10,000 ₱50,000 2020
Withdrawal of Z. Hejun ( 5,000) ( 5,000) ( (10,000) January 1 Z. Hejun, Capital ( 10,000)
Capital after withdrawal ₱30,000 ₱20,000 ( - ) ₱50,000 W. Ma, Capital ( 5,000)
L. Wenyin, Capital ( 5,000)
Withdrawal of Z. Hejun.

Illustration, Page 12-23

Dissolution - Withdrawal of a partner by payment from partnership assets:
Bonus to retiring partner General Journal
F. Roman D. Sand B. Terk Total Date Description Debit Credit
Capital before retirement ₱50,000 ₱30,000 ₱20,000 ₱100,000 2020
Bonus to retiring partner ( (3,000) ( (2,000) ( 5,000) January 1 B. Terk, Capital ( 20,000)
Retirement of B. Terk ( (25,000) ( (25,000) F. Roman, Capital ( 3,000)
Capital after retirement ₱47,000 ₱28,000 ( - ) ₱75,000 D. Sand, Capital ( 2,000)
Cash ( 25,000)
Retirement of B. Terk.

Illustration, Page 12-23

Dissolution - Withdrawal of a partner by payment from partnership assets:
Bonus to remaining partners General Journal
F. Roman D. Sand B. Terk Total Date Description Debit Credit
Capital before retirement ₱50,000 ₱30,000 ₱20,000 ₱100,000 2020
Bonus to remaining partners ( 2,400) ( 1,600) ( (4,000) January 1 B. Terk, Capital ( 20,000)
Retirement of B. Terk ( (16,000) ( (16,000) F. Roman, Capital ( 2,400)
Capital after retirement ₱52,400 ₱31,600 ( - ) ₱84,000 D. Sand, Capital ( 1,600)
Cash ( 16,000)
Retirement of B. Terk.