Accounting for special transaction

CASE 3: PARTNERSHIP DISSOLUTION (9 items x 2 points) Rachel and Patrick Co. sells inventory through their partnership. They expand their business and decide to admit Sonny to the partnership. Before the admission of Sonny, the statement of financial position of Rachel and Patrick is as follows: Cash P80,000 Accounts payable P140,000 Accounts receivable 120,000 Loan from Patrick 100,000 Merchandise inventory 280,000 Rachel, Capital (60%) 600,000 Fixed assets, net 720,000 Patrick, Capital (40%) 480,000 Loan to Rachel 120,000 Total assets P1,320,000 Total liabilities and equity P1,320,000 Required: Record the admission of Sonny (and asset revaluation, if any) for each of the following independent situation: 1. Sonny invests P279,000 for half of Patrick's capital. The money goes to Patrick. 2. Sonny directly purchases a one-fourth (1/4) interest from Rachel and Patrick by paying Rachel, P192,000, and Patrick, P216,000. The equipment account is undervalued before Sonny's admission. 3. Sonny invests the amount needed to give him one-third (1/3) interest in the capital of the partnership. No goodwill or bonus is recorded. 4. Sonny invests P312,000 for a one-fourth (1/4) interest. Rachel and Patrick agree that some of the inventory is obsolete before Sonny's admission. 5. Sonny invests P360,000 one a one-fifth (1/5) interest. Profits and loss are to be shared by Rachel, Patrick, and Sonny 45:30:25. Goodwill is not recorded. 6. Sonny invests P600,000 for a one-third (1/3) interest. Profits and losses are to be shared by Rachel, Patrick, and Sonny equally. Capital of the partnership after Sonny's admission is to be P1,800,000