PROBLEM 1

Maniquiz, Capital (140,000 x 35%)

Monte, Capital (56,000 x 35%)
Capital purchased by Galang (196,000 x 35%)

Journal Entry:

Maniquiz, Capital
Monte, Capital
Galang, Capital

Capital Balances Capital ratio

Maniquiz, Capital 91,000 46%
Monte, Capital 36,400 19%
Galang, Capital 68,600 35%
Total Agreed Capital 196,000 100%

PROBLEM 2

1) Journal entry:

a) Cardenas, Capital (150,000 x 1/5)

San Jose, Capital (110,000 x 1/4)
Labalan, Capital

b) Cash
Magada, Capital

2) Capital Balances
Cardenas, Capital 120,000
San Jose, Capital 82,500
Labalan, Capital 57,500
Magada, Capital 70,000
Total Agreed Capital 330,000

PROBLEM 3
AC
1) OLD PARTNERS 60,000 3/4
NEW PARTNER 20,000 1/4
 Total 80,000 1

Journal Entry:

Cash
Gonzaga, Capital (10,000 x 3/4)
Magada, Capital (10,000 x 1/4)
Padilla, Capital

Capital Balances
Gonzaga, Capital 37,500 47%
Magada, Capital 22,500 28%
Padilla, Capital 20,000 25%
Total Agreed Capital 80,000 (AC)

2)
AC
OLD PARTNERS 76,000
NEW PARTNER 20,000
96,000

Journal Entry:

Inventory
Gonzaga, Capital (16,000 x 3/4)
Magada, Capital (16,000 x 1/4)

Cash
Gonzaga, Capital (10,000 x 3/4)
Magada, Capital (10,000 x 1/4)
Padilla, Capital

Capital Balances
Gonzaga, Capital 49,500 51.56%
Magada, Capital 26,500 27.60%
Padilla, Capital 20,000 20.83%
Total Agreed Capital 96,000 100%

PROBLEM 4

Journal Entries:

a) Resulta, Capital (45,000 x 60%)

Magpantay, Capital (45,000 x 40%)
Allowance for Uncollectible Accounts
b) Inventories
Resulta, Capital (50,000 x 60%)
Magpantay, Capital (50,000 x 40%)

c) Resulta, Capital (40,000 x 60%)

Magpantay, Capital (40,000 x 40%)
Accrued Expenses/Accounts Payable
CC
Resulta, Capital 1,309,000 50%
Magpantay, Capital 1,066,000 30%
2,375,000
Divide by 80%
Total Agreed Capital 2,968,750

Resulta, Capital 1,484,375 50%

Magpantay, Capital 890,625 30%
Tria, Capital 593,750 20%
2,968,750
d) Cash
Magpantay, Capital
Resulta, Capital
Tria, Capital

Capital Balances
Resulta, Capital 1,484,375
Magpantay, Capital 890,625
Tria, Capital 593,750
Total Agreed Capital 2,968,750

PROBLEM 5

AC
1) OLD PARTNERS 1,800,000 75%
NEW PARTNER 600,000 25%
2,400,000 100%

Journal Entry:

Cash
Geron, Capital (200,000 x 50%)
Aglugub, Capital (200,000 x 30%)
Onate, Capital (200,000 x 20%)
Retada, Capital
 Capital balances:

Geron, Capital 400,000 17%

Aglugub, Capital 740,000 31%
Onate, Capital 660,000 28%
Retada, Capital 600,000 25%
Total Agreed Capital 2,400,000 100%

2) AC
OLD PARTNERS 2,240,000 80%
NEW PARTNER 560,000 20%
2,800,000 100%

Journal Entry:

Cash
Geron, Capital (240,000 x 50%)
Aglugub, Capital (240,000 x 30%)
Onate, Capital (240,000 x 20%)
Retada, Capital

Capital balances:

Geron, Capital 620,000 22%

Aglugub, Capital 872,000 31%
Onate, Capital 748,000 27%
Retada, Capital 560,000 20%
Total Agreed Capital 2,800,000 100%

PROBLEM 6

1) Cash
Refozar, Capital (15,000 x 50%)
Ceradoy, Capital (15,000 x 50%)
Manongsong, Capital

2) Refozar, Capital 67,500

Ceradoy, Capital 117,500
Manongsong, Capital 65,000
Total Agreed Capital 250,000

PROBLEM 7

1) Mallari, Capital (250,000 x 50%)

 Palatino, Capital

Mallari, Capital 125,000

Chua, Capital 500,000
Palatino, Capital 125,000
Total Agreed Capital 750,000

2) AC
OLD PARTNERS 750,000 3/4
NEW PARTNER 250,000 1/4
1,000,000 1

Cash
Palatino, Capital

Mallari, Capital 250,000

Chua, Capital 500,000
Palatino, Capital 250,000
Total Agreed Capital 1,000,000

3) AC
OLD PARTNERS 700,000 70%
NEW PARTNER 300,000 30%
1,000,000 1

Cash
Mallari, Capital (50,000 x 3/5)
Chua, Capital (50,000 x 2/5)
Palatino, Capital

Mallari, Capital 250,000

Chua, Capital 500,000
Palatino, Capital 250,000
Total Agreed Capital 1,000,000

4) AC
OLD PARTNERS 800,000 80%
NEW PARTNER 200,000 20%
1,000,000 1

Cash
Mallari, Capital (50,000 x 3/5)
Chua, Capital (50,000 x 2/5)
 Palatino, Capital

Mallari, Capital 280,000

Chua, Capital 520,000
Palatino, Capital 200,000
Total Agreed Capital 1,000,000
 49,000
19,600
68,600

49,000
19,600
68,600

Capital ratio

65%
35%

30,000
27,500
57,500

70,000
70,000

Capital ratio
36.36%
25.00%
17.42%
21.21%
100%

CC INC (DEC)
50,000 10,000
BONUS
30,000 (10,000)
 80,000 - REVALUATION

30,000
7,500
2,500
20,000

3/4 60,000
1/4
100%

CC INC (DEC)
50,000 26,000 (10,000 BONUS + 16,000 REVAL)
30,000 (10,000) Bonus
80,000 16,000 Revaluation

16,000
12,000
4,000

30,000
7,500
2,500
20,000

76,000

27,000
18,000
45,000 Resulta, Capital
 a) 27,000 1,330,000
50,000 c) 24,000 30,000 b)
30,000 51,000 1,360,000
20,000
1,309,000
24,000 175,375
16,000 1,484,375
40,000 Magpantay, Capital
AC a) 18,000 1,080,000
c) 16,000 20,000 b)
34,000 1,100,000

1,066,000
5:03:02 p&L ratio 175,375
capital ratio 890,625
175,375
175,375

593,750
175,375
175,375
593,750

Capital Ratio and P/L Ratio

50%
30%
20%
100%

CC INC (DEC)
2,000,000 - 200,000
Bonus
400,000 200,000
2,400,000 -

400,000
100,000
60,000
40,000
600,000
75% 1,800,000

CC INC (DEC)
2,000,000 240,000
Bonus
800,000 - 240,000
2,800,000 -

800,000
120,000
72,000
48,000
560,000

2,240,000

50,000
7,500
7,500
65,000

125,000
 125,000

CC INC (DEC)
750,000 -
Bonus
250,000 -
1,000,000 - Revaluation

250,000
250,000

CC INC (DEC)
750,000 - 50,000
Bonus
250,000 50,000
1,000,000 - Revaluation

250,000
30,000
20,000
300,000

CC INC (DEC)
750,000 50,000
Bonus
250,000 - 50,000
1,000,000 - Revaluation

250,000
30,000
20,000
200,000
PROBLEM 17

Journal Entry
DR
Danes, Capital 30,000
De Chavez, Capital (8,000 X 4/5) 6,400
Castillo, Capital (8,000 X 1/5) 1,600
Cash

Capital Balances

De Chavez, Capital 33,600

Castillo, Capital 48,400
Total Agreed Capital 82,000

1) Danes, Capital 30,000

Cruz, Capital

2) Danes, Capital 30,000

Castillo, Capital

PROBLEM 18

Journal Entry

1) Gregorio, Capital 210,000

Cash

Capital Balances

Guerra, Capital 530,000

Guillermo, Capital 430,000
Total Agreed Capital 960,000

2) Gregorio, Capital 210,000

Guerra, Capital (60,000 x 1/2) 30,000
Guillermo, Capital (60,000 x 1/2) 30,000
Cash

Guerra, Capital 500,000

Guillermo, Capital 400,000
 Total Agreed Capital 900,000

DEATH
Gregorio, Capital 210,000
Guerra, Capital (60,000 x 1/2) 30,000
Guillermo, Capital (60,000 x 1/2) 30,000
Payable to Gregorio's Estate

PROBLEM 19

Merchandise Inventory 280,000

Building 560,000
Equipment
Ventic, Capital (750,000 x 2/5)
Joson, Capital (750,000 x 2/5)
Daguiso, Capital (750,000 x 1/5)

Ventic, Capital XXXX

Payable to Ventic's Estate

PROBLEM 20

1) Ibrahim, Capital 50,000

Cebedo, Capital (4,000 x 3/5) 2,400
Basa, Capital (4,000 x 2/5) 1,600
Cash

Capital Balances

Cebedo, Capital 117,600

Basa, Capital 58,400
Total Agreed Capital 176,000

2) Ibrahim, Capital 50,000

Cash
Cebedo, Capital (5,000 x 3/5)
Basa, Capital (5,000 x 2/5)

Capital Balances

Cebedo, Capital 123,000

Basa, Capital 62,000
 Total Agreed Capital 185,000

3) Accumulated depreciation - equipment 18,000

Ibrahim, Capital (3,000 x 1/6) 500
Cebedo, Capital (3,000 x 3/6) 1,500
Basa, Capital (3,000 x 2/6) 1,000
Equipment

Ibrahim, Capital 49,500

Cash
Equipment

Capital Balances

Cebedo, Capital 118,500

Basa, Capital 59,000
Total Agreed Capital 177,500

PROBLEM 21
Bonus Method
a. Galvan, Capital 70,000
Rivadelo, Capital (20,000 x 2/8)
Del Mundo, Capital (20,000 x 2/8)
Samson, Capital (20,000 x 4/8)
Cash

Asset revaluation (20,000/20%) 100,000

Rivadelo, Capital (100,000 x 20%) 20,000

Del Mundo, Capital (100,000 x 20%) 20,000
Galvan, Capital (100,000 x 20%) 20,000
Samson, Capital (100,000 x 40%) 40,000
Other assets

Galvan, Capital 50,000

Cash

b. AC CC
OLD PARTNERS 180,000 250,000
NEW PARTNER (10%) 20,000 20,000
200,000 270,000
 Rivadelo, Capital (70,000 x 20%) 14,000
Del Mundo, Capital (70,000 x 20%) 14,000
Galvan, Capital (70,000 x 20%) 14,000
Samson, Capital (70,000 x 40%) 28,000
Other assets

Cash 20,000
Mamitag, Capital

PROBLEM 22

1) Cero, Capital 350,000

Burgos, Capital (100,000 x 500/1,000)
Albao, Capital (100,000 x 250/1,000)
Pascual, Capital (100,000 x 250/1,000)
Cash/Payable to the Estate of Cero

2) Cero, Capital 350,000

Burgos, Capital (150,000 x 50%) 75,000
Albao, Capital (150,000 x 25%) 37,500
Pascual, Capital (150,000 x 25%) 37,500
Cash/Payable to the Estate of Cero

3) Cero, Capital 350,000

Pascual, Capital
 1) Sell the capital to outside
CR 2) Sell the capital to remaining partner
3) Sell the capital to the partnership
a equal to book value
b more than or less than the book value
38,000 BONUS METHOD

30,000

30,000

210,000

270,000
 270,000

90,000 750,000
300,000
300,000
150,000

XXXX

54,000

45,000
3,000
2,000
(30,000 x 60%) Equipment 30,000
Less: Accum Depn (60%) 18,000
(12,000 -9,000) Book value (40%) 12,000

21,000 FV of equipment 9,000

Less: Book Value 12,000
Loss on disposal of equipt (3,000)

40,500
9,000

5,000
5,000
10,000
50,000

100,000

50,000

INC (DEC)
- 70,000
-
- 70,000 Revaluation
 70,000

20,000

Capital Balances
50,000 Burgos, Capital 550,000
25,000 Albao, Capital 275,000
25,000 Pascual, Capital 275,000
250,000 1,100,000

Capital Balances
Burgos, Capital 425,000
Albao, Capital 212,500
Pascual, Capital 212,500
500,000 850,000

Capital Balances
350,000 Burgos, Capital 500,000
Albao, Capital 250,000
Pascual, Capital 600,000
1,350,000