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ACCTG 124 Chapter 4

The document describes two transactions involving a partnership between Mimi, Lulu, and Gigi. In the first transaction, Lulu buys 1/4 of Mimi's interest for $3,000. In the second transaction, Lulu buys 1/5 of Gigi's interest for $2,000. Both transactions are shown by updating the capital amounts and profit/loss ratios for each partner before and after the transactions.

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John Vincent A Dio
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308 views2 pages

ACCTG 124 Chapter 4

The document describes two transactions involving a partnership between Mimi, Lulu, and Gigi. In the first transaction, Lulu buys 1/4 of Mimi's interest for $3,000. In the second transaction, Lulu buys 1/5 of Gigi's interest for $2,000. Both transactions are shown by updating the capital amounts and profit/loss ratios for each partner before and after the transactions.

Uploaded by

John Vincent A Dio
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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Capital P/L ratio

Mimi 9000 40%


Lulu 15000 60%
24000 100%

a Lulu buys 1/4 the interest of Mimi for 3000

Mimi Capital (1/4 x 9000) 2250


Lulu 2250

Old partnership New partnership


Mimi 9000 6750
Gigi 15000 15000
Lulu - 2250
24000 24000

Old partnership New partnership


Mimi 40% 30%
Gigi 60% 60%
Lulu - 10%

b, Lulu buys 1/5 the interest of Gigi for 2000

Capital 3000
Gigi 3000
Lulu
Old partnership New partnership
Mimi 9000 9000
Gigi 15000 12000
Lulu - 3000
24000 24000

Mimi 40% 40%


Gigi 60% 48%
Lulu - 12%
100%

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