PARTNERSHIP DISSOLUTION

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 Patricks 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 Sonnys 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 Rachel and Patrick agree that some of the inventory is obsolete before Sonnys admission.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 Sonnys admission is to be P1,800,000.