Partnership

Dissolution
John Patrick S. Desepida CPA, CTT
Discussion Problem 1:

Justine and Joshua are partners who share profits and losses in the ratio of
6:4, respectively. On May 1, 2020, their respective capital balances were as
follows:

Justine 60,000
Joshua 50,000

On that date, Fhaye was admitted as a partner with one third interest in
capital, and profits for an investment of 40,000. The new partnership began
with total capital of 150,000. Immediately after Fhaye’s admission,
Justine’s capital should be:

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Discussion Problem 2:

Taylor purchases 50% of Lark’s capital interest in the O and C partnership

for 22,000. If the capital balances of Olivia and Conan are 40,000 and
30,000, respectively, Taylor’s capital balance following the purchase is:

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Discussion Problem 3:

The capital balances in DEA Partnership are: D, capital 60,000; E, capital

50,000; and A, capital 40,000 and income ratios are 5:3:2, respectively. The
DEAR Partnership is formed by admitting R to the firm with cash
investment of 60,000 for a 25% interest in capital. What is the amount of
bonus to be credited to A capital in admitting R?

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Discussion Problem 4:

Jannelle, Lyka, and Jamellah are partners and share profits and losses
equally. Each has a capital balance of 1,800,000. Lyka retires from the
partnership and receives 1,500,000. Taking the partnership assets to be
fairly stated, the entry to record Lyka’s retirement is:

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Discussion Problem 5:

On June 30, 2020, the balance sheet for the partnership of Coll, Maduro,
and Prieto, together with their respective profit and loss ratios, were as
follows:

Assets, at cost 180,000

Coll, loan 9,000

Coll, capital (20%) 42,000
Maduro, capital (20%) 39,000
Prieto, capital 90,000

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Discussion Problem 5:

Coll decided to retire from the partnership. By mutual agreement, the assets
are to be adjusted to their fair value of 216,000 at June 30, 2020. It was
agreed that the partnership would pay Coll 61,200 cash for Coll’s
partnership interest, including Coll’s loan which to be repaid in full. After
Coll’s retirement, what is the balance of Maduro’s capital?

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