The percentages in parenthesis after the partners' capital balances represent their respective interests in profits and losses. The partners agree to admit Dale as a member of the firm under the following independent situations. From the following, prepare the journal entries needed to record the admission of Dave and the capital balances of the partners in the new partnership. Situation 1. Dave purchases a ¼ interest in the firm. One-fourth of each partner's capital is to be transferred to the new partner. Dave pays the partners P_ proportion to the equities given up. which is divided between them in Situation 2. Dave purchases a ¼ interest in the firm. One-fourth of each partner's capital is to be transferred to the new partner. Dave pays the partners P60,000, which is divided between them in proportion to the equities given up. The assets of the partnership are to be adjusted. Situation 3. Dave purchases a ¼ interest in the firm. One-fourth of the capital of Aron and Ben is to be transferred to the new partner. Dave pays Aron and Ben P45,000. The assets of the partnership are to be adjusted.
The percentages in parenthesis after the partners' capital balances represent their respective interests in profits and losses. The partners agree to admit Dale as a member of the firm under the following independent situations. From the following, prepare the journal entries needed to record the admission of Dave and the capital balances of the partners in the new partnership. Situation 1. Dave purchases a ¼ interest in the firm. One-fourth of each partner's capital is to be transferred to the new partner. Dave pays the partners P_ proportion to the equities given up. which is divided between them in Situation 2. Dave purchases a ¼ interest in the firm. One-fourth of each partner's capital is to be transferred to the new partner. Dave pays the partners P60,000, which is divided between them in proportion to the equities given up. The assets of the partnership are to be adjusted. Situation 3. Dave purchases a ¼ interest in the firm. One-fourth of the capital of Aron and Ben is to be transferred to the new partner. Dave pays Aron and Ben P45,000. The assets of the partnership are to be adjusted.
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 12MC: Thandie and Marco are partners with capital balances of $60,000. They share profits and losses at...
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