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Admission Sample Problems

The document contains multiple examples of partnership transactions including admissions of new partners, bonus payments to existing partners, and asset revaluations. It shows the accounting entries and calculations for total asset and total capital account balances before and after each transaction.

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Raff Lesiaa
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30 views

Admission Sample Problems

The document contains multiple examples of partnership transactions including admissions of new partners, bonus payments to existing partners, and asset revaluations. It shows the accounting entries and calculations for total asset and total capital account balances before and after each transaction.

Uploaded by

Raff Lesiaa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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New P/L Ratio

1 P150,000 Adam 20%


2 Zero Brian 15%
Charlie 50%
3 Brian, capital 150,000 Dave 15%
Dave, capital 150,000
New P/L Ratio
New P/L Ratio
1 Adam 150,000 Adam 10%
Brian 150,000 Brian 15%
Charlie 225,000 Charlie 25%
Dave 525,000 Dave 50%

2 Zero

3 Adam, capital 150,000


Brian, capital 150,000
Charlie, capital 225,000
Dave, capital 525,000
New P/L Ratio
Book value Revalued Amount
1 P600,000 1,050,000 1,200,000 150,000

2 G/L on the purchase transaction: Zero


Revaluation gain: P150,000

3 Assets 150,000
Adam, capital 30,000
Brian, capital 45,000
Charlie, capital 75,000

Adam, capital 165,000


Brian, capital 172,500
Charlie, capital 262,500
Dave, capital 600,000
Revalued Book value
1 P120,000 750,000 1,050,000 Total interest - Adam
Less: Revalued amount
2 G/L Purchase transaction: Zero Amount transferred - Dave
Revaluation loss: P300,000 Divide by:
Overvaluation of assets - Adam
3 Adam, capital 60,000 Divide by:
Brian, capital 90,000 Total overvaluation
Charlie, capital 150,000
Assets 300,000

Adam, capital 120,000


Dave, capital 120,000
al interest - Adam 300,000
s: Revalued amount
Amount transferred - Dave 120,000
50% 240,000
rvaluation of assets - Adam 60,000
20%
al overvaluation 300,000
New P/L Ratio
1 P350,000 Adam 15.00%
2 Zero Brian 22.500%
Charlie 37.500%
3 Cash 350,000 Dave 25%
Dave, capital 350,000
TAC TCC Difference
Old 1,050,000 1,050,000 -
New 350,000 350,000 -
Totals 1,400,000 1,400,000 -

New P/L Ratio

75%
1 P400,000
2 Bonus to the old partners: P150,000

3 Cash 550,000
Dave, capital 550,000

Dave, capital 150,000


Adam, capital 30,000
Brian, capital 45,000
Charlie, capital 75,000

OR

Cash 550,000
Adam, capital 30,000
Brian, capital 45,000
Charlie, capital 75,000
Dave, capital 400,000
TAC TCC Difference
Old 1,200,000 1,050,000 150,000
New 400,000 550,000 - 150,000
Totals 1,600,000 1,600,000 -
1 P300,000
2 Bonus to the new partner: P150,000

3 Cash 150,000
Adam, capital 30,000
Brian, capital 45,000
Charlie, capital 75,000
Dave, capital 300,000

Charlie, capital 75,000


Dave, capital 400,000
TAC TCC Difference
Old 900,000 1,050,000 - 150,000
New 300,000 150,000 150,000
Totals 1,200,000 1,200,000 -
1 P450,000
2 Asset revaluation: P300,000

3 Assets 300,000
Adam, capital 60,000
Brian, capital 90,000
Charlie, capital 150,000

Cash 450,000
Dave, capital 450,000

Charlie, capital 75,000


Dave, capital 400,000
TAC TCC Difference
Old 1,350,000 1,050,000 300,000
New 450,000 450,000 -
Totals 1,800,000 1,500,000 300,000
1 P375,000
2 Bonus to the old partners: P75,000

3 Cash 450,000
Adam, capital 15,000
Brian, capital 22,500
Charlie, capital 37,500

Charlie, capital 75,000


Dave, capital 400,000
BONUS METHOD
TAC TCC Difference
Old 1,125,000 1,050,000 75,000
New 375,000 450,000 - 75,000
Totals 1,500,000 1,500,000 -

ASSET REVALUATION METHOD


TAC TCC Difference
Old 1,350,000 1,050,000 300,000
New 450,000 450,000 -
Totals 1,800,000 1,500,000 300,000

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