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CH 009

1. Blau and Rubi were partners with capital accounts of $60,000 and $50,000 respectively and profits shared 6:4. Lind was admitted with 1/3 interest for $40,000 investment, making total capital $150,000 and Blau's new capital $54,000. 2. When a partner retires and receives less than their capital balance, the difference is credited to the remaining partners in their profit/loss ratio. 3. When LOV admitted partner E who bought 20% interest from L for $100,000, L's capital decreased by the amount paid, and the journal entry to record E's admission includes debiting L's capital.

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374 views2 pages

CH 009

1. Blau and Rubi were partners with capital accounts of $60,000 and $50,000 respectively and profits shared 6:4. Lind was admitted with 1/3 interest for $40,000 investment, making total capital $150,000 and Blau's new capital $54,000. 2. When a partner retires and receives less than their capital balance, the difference is credited to the remaining partners in their profit/loss ratio. 3. When LOV admitted partner E who bought 20% interest from L for $100,000, L's capital decreased by the amount paid, and the journal entry to record E's admission includes debiting L's capital.

Uploaded by

Joana Trinidad
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PARTNERSHIP DISSOLUTION ENABLING ASSESSMENT

1. Blau and Rubi are partners who share profits and losses in the ratio of 6:4, respectively. On
May 1, 2018, their respective capital accounts were as follows:
Blau 60,000
Rubi 50,000
On that date, Lind was admitted as a partner with one-third interest in capital, and profits for
an investment of P40,000. The new partnership began with a total capital of P150,000
immediately after Lind’s admission, Blau’s capital should be
P54,000

2. When a partner retires and receives in cash less than his capital balance, how should the
difference be treated?
The difference should be credited to the remaining partners in their remaining
profit and loss ratio

3. LOV Partnership decided to admit E who purchased a 20% interest from L, whose capital
balance was P400,000. E paid her P100,000.

● The effect of this transaction is a/an


Decrease in L’s capital

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


Debit to L, Capital

4. Which of the following conditions constitutes a legal dissolution of a partnership?


All of the choices given

5. If the new partner is admitted by purchase of interest of an old partner at an amount higher
than its book value, this will result in
No change in partnership’s net assets

6. The capital accounts of the partnership of R and O on January 30, 2014, are as follows:
R, Capital P80,000
O, Capital P40,000
The partners share profits and losses in the ratio of 6:4. The partnership is desperate for
cash and they agreed to admit Y as a new partner with a 1/3 interest in capital and profits
upon the latter’s capital infusion of P30,000.
After Y’s admission, what are the corresponding capital balances of R, O, and Y,
respectively, assuming assets and liabilities are fairly valued?
P68,000; P32,000; P50,000

7. Charlize and Megan are partners with capitals of P80,000 and P40,000, respectively. They
share profits in the ratio of 3:1. The partners agree to admit Caleb as a member of the firm.
● If no bonus is recognized and Caleb invests P80,000 for a 50% interest in the firm, what
is Charlize’s capital after the admission of Caleb?
P65,000

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