Dennis is being admitted into the partnership of Danilo, Romeo and Sanros. As of the date of admission, the capital balances and share in net income of the three partners are as follows: Capital BalanceP/L Ratio DaniloP30,00030% Romeo60,00050 Sanros10,00020 Make the entries incidental to the admission of Dennis who invests P30,000 for:1/5 interest in the partnership with capital credit equal to his investment.1/3 interest in the partnership with total capitalization of P150,000.1/5 interest in the partnership with total capitalization of P130,000.30% interest in the partnership with total capitalization of P130,000.25% interest in the partnership with total agreed capital of P150,000.30% interest in the partnership. The partnership has asset revaluation of P10,00015% interest in the total partners’ equity of P150,000.

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SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations

Section: Chapter Questions

Problem 39P

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Dennis is being admitted into the partnership of Danilo, Romeo and Sanros. As of the date of admission, the capital balances and share in net income of the three partners are as follows:

	Capital Balance	P/L Ratio
Danilo	P30,000	30%
Romeo	60,000	50
Sanros	10,000	20

Make the entries incidental to the admission of Dennis who invests P30,000 for:

1/5 interest in the partnership with capital credit equal to his investment.
1/3 interest in the partnership with total capitalization of P150,000.
1/5 interest in the partnership with total capitalization of P130,000.
30% interest in the partnership with total capitalization of P130,000.
25% interest in the partnership with total agreed capital of P150,000.
30% interest in the partnership. The partnership has asset revaluation of P10,000
15% interest in the total partners’ equity of P150,000.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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