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 4 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. Situation 4. Dave invests P75,000 for a % interest in the firm. Situation 5. New partner Dave conveyed a tangible asset with fair value of P82,500 with an assumed mortgage of P15,000 in exchange for a 35% interest in capital. Dave would be acquiring a ¼ interest in the profits of the partnership. The total agreed capital after admission is P270,000. The partnership will pay the mortgage.
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 4 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. Situation 4. Dave invests P75,000 for a % interest in the firm. Situation 5. New partner Dave conveyed a tangible asset with fair value of P82,500 with an assumed mortgage of P15,000 in exchange for a 35% interest in capital. Dave would be acquiring a ¼ interest in the profits of the partnership. The total agreed capital after admission is P270,000. The partnership will pay the mortgage.
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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Please answer only situation 4 and 5
Transcribed Image Text: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.
Situation 4. Dave invests P75,000 for a ¼ interest in the firm.
Situation 5. New partner Dave conveyed a tangible asset with fair value of P82,500 with an assumed
mortgage of P15,000 in exchange for a 35% interest in capital. Dave would be acquiring a 4 interest in
the profits of the partnership. The total agreed capital after admission is P270,000. The partnership will
pay the mortgage.
Transcribed Image Text:Problem 1
A partnership had the following condensed balance sheet:
Assets
Liabilities and Capital
Cash
P15,000
Liabilities
P45,000
Non-cash assets
195,000
Aron, capital(50%)
90,000
Charlie, loan
15,000
Ben, capital(30%)
30,000
Charlie,capital(20%)
60,000
Total
P225,000
Total
P225,000
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