Suppose Robbie is to be admitted in LP Partnership by purchasing one-half interest of Tony for P15,000 and one-fourth interest of Jerry and Nelly for P6,000 and P9,000, respectively. Prior to admission, the following is the statement of financial position of LP Partnership:

Required:

1. What is the journal entry to record Rody's admission in the partnership?

2. What are the capital balances of Tony, Jerry, and Nelly after the admission of Robbie?

Transcribed Image Text:

Assets LP Partnership Statement of Financial Position September 30, 2023 Cash Other Assets Total Assets Liabilities and Partners Equity Liabilities Antonio, Capital (30%) Gary, Capital (20%) Leni, Capital (50%) Total Liabilities and Partners Equity P115,000 125,000 P240,000 P140,000 30,000 20,000 50,000 P240,000 Assets LP Partnership Statement of Financial Position September 30, 2023 Cash Other Assets Total Assets Liabilities and Partners Equity Liabilities Antonio, Capital (30%) Gary, Capital (20%) Leni, Capital (50%) Total Liabilities and Partners Equity P115,000 125,000 P240,000 P140,000 30,000 20,000 50,000 P240,000

Answer rating: 100% (QA)

The journal entry to record Robbies admission in the partnership would be Debit Cash for ... View the full answer