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CH 010

This document contains several word problems related to partnership accounting. It provides the capital balances and ownership percentages of various partners before and after admissions of new partners or retirements of existing partners under different scenarios. It also includes questions about the journal entries, capital credits, bonuses, and effects of these transactions.

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Joana Trinidad
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401 views2 pages

CH 010

This document contains several word problems related to partnership accounting. It provides the capital balances and ownership percentages of various partners before and after admissions of new partners or retirements of existing partners under different scenarios. It also includes questions about the journal entries, capital credits, bonuses, and effects of these transactions.

Uploaded by

Joana Trinidad
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 DOCX, PDF, TXT or read online on Scribd
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● If no bonus is recognized and Caleb invests P30,000 for a 20% interest in the firm, what

is Megan's capital after the admission of Caleb?


P40,000

● If total agreed capital is based on Caleb’s contribution and Caleb Invests P30,000 for a
15% interest in the firm, What is Megan’s capital after the admission of Caleb?
P52,500

● If no bonus is recognized and Caleb invests P80,000 for a 50% interest in the firm, what
is the profit sharing ratio of Charlize after the admission of Caleb?
37.5%

1. CAR Partnership decided to admit E who invested P100,000 for a 25% interest in the
partnership with a total capitalization of P500,000.

● The capital credit of E is


P125,000

● The journal entry to record the admission of E will include


A recognition of bonus to E

● The effect of this transaction is a/an


Increase in capital

2. Egay and Egoe who share profits and losses equally have capital balances of P200,000 and
P240,000, respectively. They admit Engyl for a 1/3 interest in partnership capital and profits
for an investment of P260,000.
By how much were the net assets undervalued? (Engyl is credited for his capital
contribution)
P80,000

3. Which of the following best describes the admission of new partner by investing an amount
more than his capital credit under the bonus method?
Increase on both net assets and total capital

4. The partnership of Lim and Mallorca provides for equal sharing of profits and losses. Prior to
the admission of a third partner Zamora, the capital accounts are Lim, P75,000 and
Mallorca, P105,000. Zamora invests P90,000 for a P75,000 interest and partners agreed
that the net assets of the new partnership would be P270,000. This admission involves
Bonus to old partners of P15,000

5. Peter, Queen and Roy are partners with capital balances of P300,000. P300,000 and
P200,000, respectively, and sharing profits and losses equally. Roy is to retire and it is
agreed that he will take certain office equipment with a second hand value of P50,000 and a
note for his interest. The office equipment carried in the books at P65,000 but brand new
would cost P80,000. Roy’s acquisition of the office equipment would result in
Reduction in capital of P55,000 for Roy

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