Rachelle and Ruben who shared profits and losses in the ratio of 3:7 admitted Omar by letting the latter invests cash in the partnership. The respective capital balances of the partners were P80,000 for Rachelle and P100,000 for Ruben, Omar invests cash of P70,000 for 40% interest in the new firm interest of P250,000. 

Required: Answer the following and show necessary computations.

 1. How much is the total contributed capital of the partnership? 

2. How much is the amount of bonus and who will received it? 

3. What is the journal entry to record the admission of Omar?

 4. Assuming that Omar invests cash of P150,000 for a 35% in the new firm capital of P3330,000, how much is the amount of bonus and who will received it? 

5. Refer to Number 4, what is the journal entry to record the admission of Omar? 

Problem 2: Sarah and Jerome are partners who have capital balances and profit and loss ratio as follows: Sarah, P300,000 and 60% while Jerome, P250,000 and 40%. Christine, with the consent of the old partners was admitted in the partnership by allowing her to purchase ¼ of Sarah’s capital for P85,000 and ¾ of Jerome’s capital for P180,000.

 Required:

 1. Compute the book value of the partners’ interest acquired by Christine

 2. Journal entry to record the admission of Christine. 

Problem 3: 

 The post-closing trial balance of Jadine Partnership is as follows:

Cash                                                    20,000

Non-cash assets                               250,000 

Account payable                                                        156,000 

Jay, Loan                                                                          4,000 

Jay, Capital (20%)                                 5,000

Dina, Capital (50%)                                                      65,000 

Nestor, Capital _                                                          50,000 

Total                                                 275,000               275,000   (double ruled)

In November 30, 2020, the non-cash assets were realized for P200,000. Jay, who is a limited partner was considered as insolvent. 

Required: 

1. Prepared Statement of partnership Liquidation. 

2. Journal entry to record the liquidation process.

Answer rating: 100% (QA)

Question Part 1 Total capital of Partnership P 250000 Question Part 2 Amount of Bonus is 25000040100 100000 less capital brought in by Omar for 40 share P 70000 P 30000 Omar will receive the bonus amo... View the full answer