Scribd Logo
Upload

Welcome to Scribd!

  • 42 views

    Changes in Ownership - Practice Exercises and Examples

    Uploaded by

    HANNAH CHARIS CANOY
    The document discusses journal entries for admitting a new partner to a partnership, closing income and drawing accounts, and retiring an existing partner. It provides details on profit sharing ratios, capital account balances before and after transactions, and cash payments for retiring partners' equity.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Changes in Ownership - Practice Exercises and Examples

    Uploaded by

    HANNAH CHARIS CANOY
    42 views8 pages
    The document discusses journal entries for admitting a new partner to a partnership, closing income and drawing accounts, and retiring an existing partner. It provides details on profit sharing ratios, capital account balances before and after transactions, and cash payments for retiring partners' equity.

    Original Title

    Changes in Ownership_Practice Exercises and Examples

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses journal entries for admitting a new partner to a partnership, closing income and drawing accounts, and retiring an existing partner. It provides details on profit sharing ratios, capital account balances before and after transactions, and cash payments for retiring partners' equity.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    42 views8 pages

    Changes in Ownership - Practice Exercises and Examples

    Uploaded by

    HANNAH CHARIS CANOY
    The document discusses journal entries for admitting a new partner to a partnership, closing income and drawing accounts, and retiring an existing partner. It provides details on profit sharing ratios, capital account balances before and after transactions, and cash payments for retiring partners' equity.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 8

    •Carmilla and Cecilion share profits and losses

    on a fractional-share basis with two-fifths for


    Camilla and three-fifths for Cecilion. This
    year, the firm has a profits of P650,000. The
    beginning capital balances for the year were
    P900,000 for Carmilla and P1,300,000 for
    Cecilion. The balances of the drawing
    accounts are P300,000 for Carmilla and
    P240,000 for Cecilion.
    •Journalize the entries to close income
    summary and the partners’ drawing accounts
    on December 31.
    •After the tangible assets have been adjusted to
    fair values, the capital accounts of Hayabusa and
    Kagura have balances of P75,000 and P125,000,
    respectively. Hanabi is to be admitted to the
    partnership, contributing P50,000 cash to the
    partnership, for which she is to receive an equity
    of P65,000. All partners share equally in profit.
    •Prepare the journal entry to record the admission
    of Hanabi who is to receive a bonus of P15,000.
    •Calculate the capital balances of each partner
    after the admission of the new partner.

    • Harley is retiring from the partnership of Harith,


    Nana, and Harley. The profit and loss ratio is 2:2:1,
    respectively. After the accountant has posted the
    revaluation and closing entries, the credit balances
    in the capital accounts are: Harith, P530,000;
    Nana, P430,000; and Harley, P210,000.
    •Journalize the journal entries to record the
    retirement of Harley under each of the following
    unrelated assumptions:
    1. Harley retires, taking P210,000 of partnership
    cash for his equity.
    2. Harley retires, taking P270,000 of partnership
    cash for his equity.

    You might also like