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PROBLEM

The document contains information about journal entries made for partnerships. For partnership 1, the inventories were revalued resulting in capital account adjustments for partners Abad, Ramos, and Cammayo. For partnership 2, a bonus was distributed to new partner Gonzales based on 20% of the total agreed capital, resulting in capital account adjustments.

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3K views3 pages

PROBLEM

The document contains information about journal entries made for partnerships. For partnership 1, the inventories were revalued resulting in capital account adjustments for partners Abad, Ramos, and Cammayo. For partnership 2, a bonus was distributed to new partner Gonzales based on 20% of the total agreed capital, resulting in capital account adjustments.

Uploaded by

Sam V
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

PROBLEM #14

Page 3-33

Journal entries

Inventories – 60,000

Abad: 60,000 x 50% = 30,000

Ramos: 60,000 x 20% = 12,000

Cammayo: 60,000 x 30% = 18,000

Journal entries

Inventories 60,000

Abad, Capital 30,000

Ramos, Capital 12,000

Cammayo, Capital 18,000

To revalue asset

Contributed Capital Bonus Agreed Capital


Abad 60,000 (12,000) 48,000
Ramos 132,000 (4,800) 127,200
Cammayo 88,000 (7,200) 80,800
Total 280,000 (24,000) 256,000
Gonzales 20% of Total Agreed Capital
40,000 24,000 64,000
Total 320,000 0 320,000
320,000 x 20% = 64,000

Abad: 24,000 x 50% = 12,000

Ramos: 24,000 x 20% = 4,800

Cammayo: 24,000 x 30% = 7,200

(1)

Cash 40,000

Gonzales, Capital 40,000

To record the investment of Gonzales

(2)

Abad, Capital 12,000

Ramos, Capital 4,800

Cammayo, Capital 7,200

Gonzales, Capital 24,000

To record bonus to Gonzales (new partner)


PROBLEM #15

PAGE 3-34

#1

Before Admission
Morales, Capital 260,000
Gamino, Capital 180,000
Quito, Capital 160,000
Abello, Capital -
Total 600,000

600,000 divided by ¾ = 800,000 x ¼ = 200,000

Cash 200,000

Abello, Capital 200,000

#2

Contributed Capital Bonus Agreed Capital


Morales 260,000 9,600 269,600
Gamino 180,000 7,200 187,200
Quito 160,000 7,200 167,200
Total 600,000 24,000 624,000
Abello 200,000 (24,000) 176,000
Total 800,000 0 800,000

Morales: 24,000 x 4/10 = 9,600

Gamino: 24,000 x 3/10 = 7,200

Quito: 24,000 x 3/10 = 7,200

(1)

Cash 200,000

Abello, Capital 200,000

To record investment of Abello

(2)

Abello, Capital 24,000

Morales, Capital 9,600

Gamino, Capital 7,200

Quito, Capital 7,200

To record bonus to old partners


#3

Contributed Capital
Morales 260,000
Gamino 180,000
Quito 160,000
Total 600,000
Abello 220,000
Total 820,000

820,000 – 600,000 = 220,000

Cash 220,000

Abello, Capital 220,000

To record investment of Abello

#4

Other Assets written down by 20,000

Morales: 20,000 x 4/10 = 8,000

Gamino: 20,000 x 3/10 = 6,000

Quito: 20,000 x 3/10 = 6,000

Morales, Capital 8,000

Gamino, Capital 6,000

Quito, Capital 6,000

Other Assets 20,000

To revalue asset

Contributed Capital Bonus Agreed Capital


Morales 260,000 – 8,000
= 252,000
Gamino 180,000 – 6,000
= 174,000
Quito 160,000 – 6,000
= 154,000
Total 580,000
Abello 200,000
Total 800,000

580,000 divided by ¾ =

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