Prepare the journal entries in the books of the partnership

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Question - Prepare the journal entries in the books of the partnership under each of the following independent cases:

1. Partners A and B have capitals of P60,000.00 and P90,000.00 respectively. They share profits and losses equally. They agree to admit C into the partnership. C is to contribute P24,000.00 in cash but he will receive a capital credit of P30,000.00 for a 1/6 interest in the firm.

2. M and N are partners with capitals of P75,000.00 and P60,000.00 respectively. They share profits and losses as follows: M, 60%; and N, 40%. They agree to admit O to the partnership. O will contribute P60,000.00 cash and will receive a credit for the same amount representing ¼ interest in the capital of the firm.

3. X and Y have capitals of P40,000.00 and P60,000.00 respectively. They share profit and losses equally. They agree to admit Z to the partnership. Z is to contribute P16,000.00 in cash for a 1/6 interest in the new agreed capital of P116,000.00.

4. C and D have capitals of P25,000.00 and P20,000.00 respectively. They share profit and losses as follows: C, 3/5; D, 2/5. They agree to admit E to the partnership. E is to invest P20,000.00 in cash for a 25% interest in the total capital of P65,000.00.

5. A and B are partners with capital investments of P20,000.00 and P30,000.00 respectively. They share profits and losses equally. B with the consent of A sells to C one-half of his interest in the firm for P18,000.00. The original partnership agreement between A and B is terminated and a new partnership agreement is executed among A, B and C.

Reference no: EM132949261

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