The partner’s capital (income-sharing ratio in parentheses) of Rivadelo, Del Mundo, Galvan and Samson on May 31, 2018, was as follows: Rivadelo (20%) P 60,000 Del Mundo (20%) 80,000 Galvan (20%) 70,000 Samson (40%) 40,000 Total Partners’ Capital P 250,000 On May 31, 2018, with the consent of Rivadelo, Del Mundo, and Samson: Galvan retired from the partnership and was paid P50,000 cash in full settlement of his interest in the partnership. Mamitag was admitted to the partnership with a P20,000 cash investment for a 10% interest in the net assets of the partnership. No goodwill will be recognized. Prepare the journal entries to record the foregoing events.

The partner’s capital (income-sharing ratio in parentheses) of Rivadelo, Del Mundo, Galvan and Samson on May 31, 2018, was as follows: Rivadelo (20%) P 60,000 Del Mundo (20%) 80,000 Galvan (20%) 70,000 Samson (40%) 40,000 Total Partners’ Capital P 250,000 On May 31, 2018, with the consent of Rivadelo, Del Mundo, and Samson: Galvan retired from the partnership and was paid P50,000 cash in full settlement of his interest in the partnership. Mamitag was admitted to the partnership with a P20,000 cash investment for a 10% interest in the net assets of the partnership. No goodwill will be recognized. Prepare the journal entries to record the foregoing events.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...

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