11 Chen and Fran are partners sharing profits equally.

Their respective capital balances are 2,000,000

a Total agreed equity of P5,000,000. If there is no asset revaluation and no bonus, how much
Partners Existing EquitAgreed EquitRevised Equity
Chen 2000000 2000000
Fran 1000000 1000000
Paula 2000000 2000000
Total 3000000 5000000 5000000

b She will be given a 50% interest and a bonus of P100,000 from the existing partners. How m
Partners Existing EquitNew ContribuBonus Revised Equity
Chen 2000000 -66666.67 1933333.33
Fran 1000000 -33333.33 966666.67
Paula 1500000 100000 1600000
Total 3000000 1500000 4500000

c She will be given a 1/3 interest in an agreed total capital of P6,000,000. Assets should be rev
Partners Existing EquitAgreed EquityAssets RevaluRevised Equity
Chen 2000000 666666.67 2666666.67
Fran 1000000 333333.33 1333333.33
Paula 2000000 2000000
Total 3000000 6000000 1000000 6000000

d She will invest P2,000,000 and be given a 50% interest in the total agreed equity of P4,800,0
Partners Existing EquitAgreed EquityAsset Impair Revised Equity
Chen 2000000 -133333.33 1866666.67
Fran 1000000 -66666.67 933333.33
Paula 2000000 2000000
Total 3000000 4800000 -200000 4800000

e She will invest P2,500,000 and be given credit for goodwill for a 40% interest. Is the agreem
Partners Existing EquitAgreed EquityGoodwill Revised Equity
Chen 2000000 2000000
Fran 1000000 1000000
Paula 2500000 2000000 4500000
Total 3000000 4800000 2000000 7500000
ctive capital balances are 2,000,000 and 1,000,000. They agree to admit Paula as a new partner.

evaluation and no bonus, how much will she invest and for what percent of interest?

00 from the existing partners. How much is total agreed equity and how much will Paula invest?
evised Equity

l of P6,000,000. Assets should be revalued (upward adjustment) for P1,000,000. How much will Paula invest?
evised Equity

in the total agreed equity of P4,800,000. Is asset revaluation implied or bonus?

evised Equity

will for a 40% interest. Is the agreement valid? Explain

evised Equity
14 Liza, Fe and Arman are partners with capital balances of P200,000, P300,000 and P100,000 respect

a Update the capital Balances of the partners by recording the profit.

Liza, Capital 200,000
Share in net profit for six moths 60,000
Cash withdrawals
Liza, Capital 260,000

Fe, Capital 300,000

Share in net profit for six moths 60,000
Cash withdrawals
Fe, Capital 360,000

Arman, Capital 100,000

Share in net profit for six moths 30,000
Cash withdrawals -15,000
Arman, Capital 115,000

b Close the drawing account of Arman to the capital account.

Arman, Drawings 15,000
Arman, Capital 15,000

c 1. His interest is personally paid by the partners in the amount of P150,000. The partners agre
Arman, Capital 115,000
Liza, Capital 57,500.00
Fe, Capital 57,500.00

2. The partnership paid P80,000 with bonus capital recognized for the difference.
Arman, Capital 115,000
Cash 80,000
Liza, Capital 17,500.00
Fe, Capital 17,500.00

3. the partnership will pay P200,000. Assets of the partnership should first be revalued.
Other Assets 425000
Liza, Capital 170000
Fe, Capital 170000
Arman, Capital 85000

Arman, Capital 200000

Cash 200000

d Prepare a revised Partners' Equity for each option

Liza, Capital 317500
Fe, Capital 417500
Total 735000

Liza, Capital 277500

Fe, Capital 377500
Total 655000

Liza, Capital 430000

Fe, Capital 530000
Total 960000
300,000 and P100,000 respectively at the end of the year.  Profit and loss ratio is 4:4:2, respectively. Six months later, Arman decide

of P150,000. The partners agree on an equal sharing of Arman's interest.

or the difference.

hould first be revalued.

months later, Arman decides to retire from the partnership. Profit and loss ratio is 4:4:2, respectively. Six months later, Arman dec
Six months later, Arman decides to retire from the partnership. His drawing account at this date is P15,000 and the net income for
5,000 and the net income for the first half of the current year was determined   by the bookkeeper from the records to be P150,000.
the records to be P150,000.
15 As of december 31,2018. Harry, Oliver and peter have capital balances of 700,000, 500,000 and 800,
Effective at the beginning of 2019, Princess will join the firm with a 20% interest in capital and pro

a Prepare the entries to record the revaluation of land and the retirement of Peter.
Debit Credit
Equipment 50000
Harry, Capital 25000
Oliver, Capital 25000

b Prepare a revised partners' equity after the retirement.

Harry 700000 700000 25000
Oliver 500,000 500,000 25000
Peter 800,000 -750,000 = (50,000)

c Prepare the entry to record the admission of Princess of 2019.

Debit Credit
Cash 300,000
Princess, Capital (1,250,000*.20)250,000
Harry, Capital 25,000
Oliver, Capital 25,000

d Give the profit share of each partners if the firm earned 420,000 at the end.
Princess (420,000*.2084,000
Harry (420,000*.40168,000
Oliver (420,000*.40168,000
0,000, 500,000 and 800,000, respectively, when Peter decided to withdraw from the partnership. Profits and losses are shared equall
rest in capital and profit after a cash contribution of 300,000 plus goodwill. Princess, as managing partner, will received an annual

retirement of Peter.

725000
525,000
0

000 at the end.

and losses are shared equally among the partner. The partnership agreed to pay 750,000 to peter in exchange for his partnership in
ner, will received an annual salary of 120,000.
change for his partnership interest. The amount paid to Peter should reflect his share for the revaluation of Equipment.
n of Equipment.
16 Carlson, Weber, and Stan share profits equally and have capital balances of P120,000,000, and P80
a. Carlson, Weber, and Larins will receive annual salaries of P120,000, P90,000, and P90,000, respe
b. Weber and Larins will each receive a 5% bonus based on net income after salaries and bonuses.
c. Profit or loss on residual profit, he shared 40%, 30%, and 30%, respectively, with C. Carlson, W
Taxable income for 2018 was P420,000.

a Prepare the entry to record Larin's admission to the partnership.

Carison 120,000
Weber 70,000
Stan 80,000
Total 270,000

Admission of Larins:
Stan, Capital 80,000
Larins,Capital 80,000

b Prepare an allocation table and record the distribution of the profit.

Allocation table
Carlson Weber Larins Total
Salaries 120000 90000 90000 300000
Bonus 2857 2857 5714
Total 120000 92857 92857
Capital Bal 120000 70000 80000
Ending Bal 240000 162857 172857 305714

c Determine the revised partners' equity as of December 31, 2018.

Carlson Weber Larins Total
Profit and l 40% 30% 30%
Capital Bal 120000 70000 80000 270000
Allocation 2400 1800 1800 6000
117600 68200 78200 264000
ces of P120,000,000, and P80,000, respectively, as of December 31, 2017. On January 1, 2018, with Larins for a total consideration o
P90,000, and P90,000, respectively, withdrawable in equal amounts at the end of each quarter.
e after salaries and bonuses.
ectively, with C. Carlson, Weber, and Larins.

of the profit.
ns for a total consideration of P100,000. As part of admitting Larins to the consent of Carlson and Weber, Stan transferred his inter
er, Stan transferred his interest in the partnership to the partnership. The profit-and-loss sharing agreement was modified as follow
ement was modified as follows:
17 Refer to no. 16. Income for the first six months of 2019 was only P120,000 when Carlson and Weber
After Larins left the partnership, Carlson and Weber went back to sharing profits and losses equall

a Prepare an allocation table for the first half of 2019.

Carlson Weber Larins
-40% -30% -30%
Balance 240000 162857 172857
Income for the first month 48000 36000 36000
Balance 288000 198857 208857
Bonus to old partners 74204 55653
Balance for the first 6 months 362204 254510 0
Withdrawal -20000 -20000
b Income for the last 6 months 75000 75000
Ending Capital Balance 417204 309510

c Prepare the statement of partners' equity as at December 31, 2019.

Debit Credit
Larins, Capital 208857
Cell 79000
Carlson, Capital 74204
Weber, Capital 55653
0 when Carlson and Weber agreed to acquire Larin's interest in the partnership. The transaction would be recorded as a purchase
ng profits and losses equally with quarterly withdrawals of P10,000 per partner at the end of each calendar quarter. Taxable Incom
d be recorded as a purchase of Larin's interest by the partnership under the bonus method with a payment of P79,000 for his capita
ndar quarter. Taxable Income for the second half of 2019 was P150,000.
ment of P79,000 for his capital balance as of June 30, 2019, and no other distribution was made to him.