PROBLEM 1.

Req. 1- Adjusted capital of Yvonne is P18,000

Computation:
Accounts Receivable (108,000)
Merchandise Inventory (218,000)
Furniture & Fixtures (279,000)
Total Adjustment P605,000
Less: Unadjusted Capital 587,000
Adjusted Capital P18,000

Req. 2- Cash Investment of Jenny.

Req.3- Prepare an entry adjusting the books to Yvonne

Cash P160,000
Accounts Receivable (3,000)
Merchandise Inventory 12,000
Furnitures & Fixtures (7,000)
Total Assets P162,000
Accounts Payable P130,000
Notes Payable 50,000
Yvonne, Capital (18,000)
Total P162,000

Req.4- Closing the book of Yvonne

Accounts Payable P130,000

Notes Payable 50,000
Yvonne, Capital (18,000)
Total P162,000
Cash P160,000
Accounts Receivable (3,000)
Merchandise Inventory 12,000
Furniture & Fixtures (7,000)
Total P162,000
PROBLEM 2.

Case 1.

JOCELYN JOSEPHINE WINSTON TOTAL

Interest 10% 30,000 25,000 20,000 75,000
Balance 37,500 22,500 15,000 75,000
Total 67,500 47,500 35,000 150,000

Case 2.

Jocelyn Josephine Winston Total

Salary Allowances 20,000 20,000 20,000 60,000
Bonus [10%(150,000- 9,000 - - 9,000
20,000-20,000-20,0000)]
Bonus [5%(150,000- - 4,500 4,500 9,000
20,000-20,000-20,000)]
Balance to be divided - - - -
equally
(150,000-60,000-9,000-
9,000= 72,000)
Jocelyn: 30,857.14
72,000x510,000/1,190,000
Josephine: 21,176.47
72,000x350,000/1,190,000
Winston: 19,966.39 72,000
72,000x330,000/1,190,000
SHARE OF PARTNERS IN 59,857.14 45,676.47 44,466.39 150,000
PROFITS

Case 3.
 Jocelyn, Josephine & Winston
Computation of the Average Capital Balances
For the Year Ended Dec. 31, 2021

Jocelyn, Capital
Date CAPITAL ACCOUNT PORTION* OF THE AVERAGE
BALANCES YEAR UNCHANGED CAPITAL
BALANCES
Jan. 1 480,000 3/12 120,000
Apr. 1 460,000 3/12 115,000
Jul. 1 490,000 3/12 122,500
Oct. 1 510,000 3/12 127,500
Average Capital Balance 485,000

Josephine, Capital
Date CAPITAL ACCOUNT PORTION* OF THE AVERAGE
BALANCES YEAR UNCHANGED CAPITAL
BALANCES
Jan 1 320,000 2/12 53,333.33
Mar 1 370,000 6/12 185,000
Sep 1 360,000 2/12 60,000
Nov. 1 350,000 2/12 58,333,33
Average Capital Balance 356,666.7

Winston, Capital
Date CAPITAL ACCOUNT PORTION* OF THE AVERAGE
BALANCES YEAR UNCHANGED CAPITAL
BALANCES
Jan 1 280,000 1/12 23,333.33
Feb 1 270,000 2/12 45,000
Apr 1 310,000 7/12 180,833.33
Nov. 1 330,000 2/12 55,000
Average Capital Balance 304,166.7

Jocelyn Josephine Winston TOTAL

Salary 40,000 40,000 40,000 120,000
Interest (10%) 48,500 35,666.7 30,416.7 114,583.4
Balance (38,062.5) (29,604.2) (16,916.7) (84,583.4)
Share of Partners 50,437.5 46,062.5 53,500 150,000
in Profits