Exercise 2: Admission by Contributing Capital to Partnership DirectlyDennis is being admitted into the partnership of Danilo, Romeo and Sanros. As of the dateof admission, the capital balances and share in net income of the three partners are as follows:Capital BalanceP30,000P/L RatioDanilo30%Romeo60,00050Sanros10,00020Make the entries incidental to the admission of Dennis who invests P30,000 for:a. 1/5 interest in the partnership with capital credit equal to his investment.b. 1/3 interest in the partnership with total capitalization of P150,000.c. 1/5 interest in the partnership with total capitalization of P130,000.d. 30% interest in the partnership with total capitalization of P130,000.e. 25% interest in the partnership with total agreed capital of P150,000.f. 30% interest in the partnership. The partnership has asset revaluation of P10,000g. 15% interest in the total partners' equity of P150,000.

Given: To prepare the entries of the incidental admission of Dennis invest in the amount of P30,000…

Answered: Capital Balance P30,000 60,000 10,000…

Business

Accounting

Capital Balance P30,000 60,000 10,000 P/L Ratic 30% 50 20

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Exercise 2: Admission by Contributing Capital to Partnership Directly
Dennis is being admitted into the partnership of Danilo, Romeo and Sanros. As of the date
of admission, the capital balances and share in net income of the three partners are as follows:
Capital Balance
P30,000
P/L Ratio
Danilo
30%
Romeo
60,000
50
Sanros
10,000
20
Make the entries incidental to the admission of Dennis who invests P30,000 for:
a. 1/5 interest in the partnership with capital credit equal to his investment.
b. 1/3 interest in the partnership with total capitalization of P150,000.
c. 1/5 interest in the partnership with total capitalization of P130,000.
d. 30% interest in the partnership with total capitalization of P130,000.
e. 25% interest in the partnership with total agreed capital of P150,000.
f. 30% interest in the partnership. The partnership has asset revaluation of P10,000
g. 15% interest in the total partners' equity of P150,000.

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