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Part 3

The document describes various scenarios involving changes to partnership interests for Cavite Realty Company. 1) Nelia Pascual paid Dolores Aguilar for 20% of Aguilar's interest, investing additional cash and receiving a percentage interest. 2) Pascual invested cash and received an 18.18% interest equal to their investment. 3) Pascual invested cash for a 20% interest, with bonuses given to original partners based on capital balances.

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5K views

Part 3

The document describes various scenarios involving changes to partnership interests for Cavite Realty Company. 1) Nelia Pascual paid Dolores Aguilar for 20% of Aguilar's interest, investing additional cash and receiving a percentage interest. 2) Pascual invested cash and received an 18.18% interest equal to their investment. 3) Pascual invested cash for a 20% interest, with bonuses given to original partners based on capital balances.

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PRETTYKO
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© © All Rights Reserved
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Problem #3

Admission by Purchase of Interest or Investment of Assets


Dolores Aguilar, Isolde Sustrina, and Beth Bigalbal are partners in Cavite Realty Company.
Their capital balances as at July 31, 2019, are as follows:
Aguilar, Capital Sustrina, Capital Bigalbal, Capital
450,000 150,000
Each partner has agreed to admit Nelia Pascual to the partnership.
Required:
Prepare the entries to record Pascual’s admission to or Aguilar’s withdrawal
from the partnership under each of the following conditions:
a. Pascual paid Aguilar P125,000 for 20% of Aguilar’s interest in the partnership.
b. Pascual invested P200,000 cash in the partnership and received an interest
equal to her investment.
c. Pascual invested P300,000 cash in the partnership for a 20% interest in the business.
A bonus is to be recorded for the original partners on the basis of their capital balances.
d. Pascual invested P300,000 cash in the partnership for a 40% interest in the business.
The original partners gave Pascual a bonus according to the ratio of their capital balances on July 31, 2019.
e. Aguilar withdrew from the partnership, taking P525,000. The excess of withdrawn assets over Aguilar’s
partnership interest is distributed according to the balances of the Capital accounts.
f. Aguilar withdrew by selling her interest directly to Pascual for P600,000.

a
Amount P&L
Aguilar, Capital 360,000.00 40%
Sustrina, Capital 150,000.00 16.67%
Bigalbal, Capital 300,000.00 33.33%
Pascual, Capital 90,000.00 10%
Total 900,000.00

Aguilar Capital 90,000.00


Pascual Capital 90,000.00

b TContributedC Interest TAgreedC Difference


Aguilar, Capital 450,000.00 40.91% 450,000.00 -
Sustrina, Capital 150,000.00 13.64% 150,000.00 -
Bigalbal, Capital 300,000.00 27.27% 300,000.00 -
Pascual, Capital 200,000.00 18.18% 200,000.00 -
Total 1,100,000.00 1,100,000.00 -

Cash 200,000.00
Pascual Capital 200,000.00

c TContributedC Interest TAgreedC Difference


old 900,000.00 80% 960,000.00 60,000.00
new 300,000.00 20% 240,000.00 - 60,000.00
total 1,200,000.00 1,200,000.00 -

cash 300,000.00
Aguilar Capital 30,000.00
Sustrina CApital 10,000.00
BIgalbal Capital 20,000.00
Pascual Capital 240,000.00

Amount P&L
Aguilar Capital 480,000.00 40%
Sustrina CApital 160,000.00 13.33%
BIgalbal Capital 320,000.00 26.67%
Pascual Capital 240,000.00 20%
Total 1,200,000.00

d TContributedC Interest TAgreedC Difference


Old 900,000.00 60% 720,000.00 - 180,000.00
New 300,000.00 40% 480,000.00 180,000.00
Total 1,200,000.00 1,200,000.00 -

Cash 300,000.00
Aguilar Capital 90,000.00
Sustrina Capital 30,000.00
Bigalbal Capital 60,000.00
Pascual Capital 480,000.00

Amount P&L
Aguilar Capital 360,000.00 30%
Sustrina CApital 120,000.00 10%
BIgalbal Capital 240,000.00 20%
Pascual Capital 480,000.00 40%
1,200,000.00

e Aguilar Capital 450,000.00


Sustrina CApital 25,000.00
Bigalbal Capital 50,000.00
cash 525,000.00

Amount P&L
Sustrina, Capital 125,000.00 33.33%
Bigalbal, Capital 250,000.00 66.67%
Total 375,000.00
f Aguilar Capital 450,000.00
Pascual Capital 450,000.00

Amount P&L
Sustrina, Capital 150,000.00 16.67%
Bigalbal, Capital 300,000.00 33.33%
Pascual, Capital 450,000.00 50%
Total 900,000.00
Bigalbal, Capital
300,000

uly 31, 2019.


er Aguilar’s

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