ATENEO DE ZAMBOANGA UNIVERSITY

School of Management and Accountancy

Accounting Department
ADVACC 1
Assignment

Name: ______________________________________ Section: ___________

Deadline for submission is on Sept. 10/2020 @ 3:00 PM

1) Assume that the AB Partnership had the following data on the date
that a new partner is to be admitted.

Cash 1,000,000
Liabilities 100,000
A, Capital 450,000
B, Capital 450,000
C is admitted with a payment to A of P200,000 and B of P120,000 for
a 1/3 interest in the partnership with a capitalization of P900.000.
Required: Compute the new balances of the partners’ capital
accounts and journal entries.

2) DE Partnership had the following data on the date that a new partner
is to be admitted.

Cash 1,000,000
Other Assets 1,300,000
Total assets 2,300,000
Liabilities 300,000
D, Capital 1,000,000
E, Capital 1,000,000 2,000,000
Total Liabilities and Equity 2,300,000

Incoming cash investment of F 1,000,000

Agreed interest of F (equal to his investment) 1,000,000
Required: Compute the new balances of the partners’ capital and
journal entries.
3) LM Partnership had the following data on the date that a new partner
is to be admitted.

Cash 1,000,000
Receivables 1,400,000
Total assets 2,400,000
Liabilities 300,000
L, Capital 1,050,000
M, Capital 1,050,000 2,100,000
Total liabilities and capital 2,400,000
Profit and loss ratio equally
Contribution by new partner N 1,000,000
Receivable to be written off 100,000
Interest of new partner in the new capitalization 1,000,00
Required: Compute the new balances and journal entries.

4) Assuming that the JK Partnership had the following data on the date
that a new partner is to be admitted.

Assets 2,000,000
Liabilities 300,000
J, Capital (50%) 850,000
K, Capital (50%) 850,000
Contribution by new partner Lin cash 7,300,000
Agreed new capitalization 9,000,000
Agreed interest of new partner in new
capitalization 1/3
Required: Compute the balances of each partner and journal entries.

5) Data on MN Partnership on the date that a new partner is admitted.

Assets 2,000,000
Liabilities 300,000
M, Capital (50%) 850,000
N, Capital (50%) 850,000
Contribution by new partner O, cash 700,000
Agreed new capitalization 2,400,000
Agreed interest of new partner in new
capitalization ½
Required: Compute the new balances of each partner and journal
entries.