FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Tey and Min sell electronic equipment and supplies through their partnership . They wish to expand their computer lines and decide to admit Tin to the partnership. Tey’s capital is P100,000 while Min’s capital is P80,000 and they share income in a ratio of 3:2.
Requirements: Record the admission of Tin for each of the following independent situations.
a. Tin directly purchases half of Min’s investment in the partnership for P46,500.
b. Tin invests the amount needed to give him a one-third interest in the capital of the partnership if no bonus is recorded.
c. Tin invests P56,000 for a one-fourth interest. An asset revaluation is recorded for inventory.
d. Tey and Min agree that some of the inventory is obsolete. The inventory account is decreased before Tin is admitted. Tin invests P52,000 for a one-fourth interest.
e. Tin directly purchases a one-fourth interest by paying Tey P32,000 and Min P36,000. The Land account is increased before Tin is admitted.
f. Tin invests P40,000 for a one-fifth interest in the total capital of P220,000.
g. Tin invests P60,000 for one-fifth interest. An asset revaluation is recorded for Land.
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