Problem 1

Cash 30,000 Acoounts Payab le 100,000

Accounts Receivable 120,00 Apple, Capital 430,253.16
Inventory 160,00 Lemon, Capital 229,746.84
Equipment 450,000 Total Liabilities & Equity 760,000
Total Assets 760,000

515,000/790,000 = 0.65189873417 275,000/790,000 = 0.34810126582

a. Prepare the entries and determine the capital balances of the partners after admission
if Orange
acquires half of Lemon’s capital interest for P800,000.
Apple Lemon Orange Total
430,253.16 229,746.84 660,000
-114,873.42 114,873.42
As credited 430,253.16 114,873.42 114,873.42 660,000

Lemon, Capital 114,873.42

Orange, Capital 114,873.42
b. Prepare the entries and determine the capital balances of the partners after admission
if Orange
acquires 20% of Apple and Lemon’s capital interests for P800,000.
Apple Lemon Orange Total
430,253.16 229,746.84 660,000
-86,050.63 -45,949.37 132,000
As credited 344,202.53 183,797.47 132,000 660,000

Apple, Capital 86,050.63

Lemon, Capital 45,949.37
Orange, Capital 132,000

Problem 5
Claire Agnes Bernadette Total
150,000 125,000 275,000
Net Income 45,000 45,000 90,000
195,000 170,000 365,000
Invested 175,000 175,000
195,000 170,000 175,000 540,000
Bonus 33,500 33,500 -67,000
As credited 228,500 203,500 108,000 540,000

Problem 7
Mark Matthew James Total
400,000 400,000 400,000 1,200,000
Re-evaluation -20,000 -20,000 -20,000 -60,000
380,000 380,000 380,000 1,140,000
 -380,000 -380,000
As credited 0 380,000 380,000 760,000
 Problem 2
Ignatius Francis Peter Martin Total
300,000 100,000 200,000 600,000
100,000 100,000
As credited 300,000 100,000 200,000 100,000 700,000

100,000 is the amount to be invested by Martin to be a new partner.

Problem 3
Jude Isidore Anthony Total
600,000 200,000 800,000
100,000 100,000
600,000 200,000 100,000 900,000
Bonus -48,000 -32,000 80,000
As credited 552,000 168,000 180,000 900,000

6
Problem 4
Joe Efren Rene Millet Total
500,000 200,000 300,000 1,000,000
300,000 300,000
500,000 200,000 300,000 300,000 1,300,000
Bonus 20,000 8,000 12,000 -40,000
As credited 520,000 208,000 312,000 260,000 1,300,000

Problem 6
Joachim John Joseph Total
200,000 140,000 70,000 410,000
90,000 60,000 30,000 180,000
290,000 200,000 100,000 590,000
-200,000 -200,000
As credited 290,000 0 100,000 390,000

a. Record the entry for the increased in the fair market value of the “Land”.
Land 180,000
Joachim, Capital 90,000
John, Capital 60,000
Joseph, Capital 300,000

b. Record the entry for the withdrawal of John.

John, Capital 200,000
Cash 200,000