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    06 Activity 3-BA

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    Tyron Franz Anorico
    The document discusses two topics: [1] the admission of a new partner, Lulu, to an existing partnership between Mimi and Gigi under three scenarios; and [2] the withdrawal of partner C from a three-person partnership. For the admission of Lulu, the summary provides the accounting entries for each of the three scenarios. For the withdrawal of C, the summary lists the necessary accounting entries to record C receiving certain furniture at second-hand value and a note for the balance of their interest.

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    06 Activity 3-BA

    Uploaded by

    Tyron Franz Anorico
    69 views2 pages
    The document discusses two topics: [1] the admission of a new partner, Lulu, to an existing partnership between Mimi and Gigi under three scenarios; and [2] the withdrawal of partner C from a three-person partnership. For the admission of Lulu, the summary provides the accounting entries for each of the three scenarios. For the withdrawal of C, the summary lists the necessary accounting entries to record C receiving certain furniture at second-hand value and a note for the balance of their interest.

    Original Description:

    BASIC ACCOUTING

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    The document discusses two topics: [1] the admission of a new partner, Lulu, to an existing partnership between Mimi and Gigi under three scenarios; and [2] the withdrawal of partner C from a three-person partnership. For the admission of Lulu, the summary provides the accounting entries for each of the three scenarios. For the withdrawal of C, the summary lists the necessary accounting entries to record C receiving certain furniture at second-hand value and a note for the balance of their interest.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    69 views2 pages

    06 Activity 3-BA

    Uploaded by

    Tyron Franz Anorico
    The document discusses two topics: [1] the admission of a new partner, Lulu, to an existing partnership between Mimi and Gigi under three scenarios; and [2] the withdrawal of partner C from a three-person partnership. For the admission of Lulu, the summary provides the accounting entries for each of the three scenarios. For the withdrawal of C, the summary lists the necessary accounting entries to record C receiving certain furniture at second-hand value and a note for the balance of their interest.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    BM1705

    Mimi DATE: SCORE:


    Gigi
    Lulu
    A
    B
    C

    Admission of New Partner (7 points)

    Mimi and Gigi are partners sharing profits and losses in the ratio of 2:3 with capitals of P9,000 and P15,000,
    respectively. Lulu is to be admitted into the partnership after which they will share profits and losses equally. The books
    of the old partnership will still be used by the new partnership.

    Requirement: Give the entry to record the admission of Lulu under each of the following independent assumptions.
    Show also the comparative capital structure and interest of each partner in relation to the total capital before and after the
    admission of Lulu.
    1. Lulu buys 1/4 the interest of Mimi for P3,000. (2 points: 1 point for each correct account and amount
    used)
    Particulars Debit Credit
    Mimi, Capital 2,250
    Lulu, Capital 2,250
    Lulu’s Capital = Mimi’s Capital x (1/4)
    = 9,000 x (1/4)
    = 2,250
    2. Lulu buys 1/5 the interest of Gigi for P2,000. (2 points: 1 point for each correct account and amount
    used)
    Particulars Debit Credit
    Gigi, Capital 3,000
    Lulu, Capital 3,000
    Lulu’s Capital = Gigi’s Capital x (1/4)
    = 15,000 x (1/5)
    = 3,000

    3. Lulu buys 1/2 the interest of Mimi for P5,000 and 1/4 the interest of Gigi for P6,000. (3 points: 1 point for
    each correct account and amount used)
    Particulars Debit Credit
    Mimi, Capital 4,500
    Lulu, Capital 4,500

    Gigi, Capital 3,750


    Lulu, Capital 3,750
    OR
    Particulars Debit Credit
    Mimi, Capital 4,500
    Gigi, Capital 3,750
    Lulu, Capital 8,250
    Lulu’s Capital = Mimi’s Capital (1/2)
    = 9,000 x (1/2)
    = 4,500
    Lulu’s Capital = Gigi’s Capital (1/4)
    = 15,000 x (1/4)
    = 3,750
    Withdrawal of a Partner (7 points)

    A, B, and C are partners with capital balances on December 31, 200D of P450,000, P450,000, and P300,000,
    respectively. Profits are shared equally. C wishes to withdraw and it is agreed that he is to take certain furniture and
    fixtures at their second-hand value of P18,000 and note for the balance of his interest. The furniture and fixtures are
    carried on the books as fully depreciated. Brand new, the furniture and fixtures may cost P30,000. Give the entries
    necessary to record the withdrawal of C. (7 points: 1 point for each correct account and amount used)

    Debit Credit
    Equipment 18,000
    A, Capital 6,000
    B, Capital 6,000
    C, Capital 6,000

    Debit Credit
    C, Capital 306,000
    Equipment 18,000
    Cash 288,000

    Reference:
    Abeleda, N. S. (2012). Simplified accounting for partnership and corporation. Parañaque: Nelson Publications.

    06 Activity 3 *Property of STI


    Page 1 of 1

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