Prepare the journal entries to record the admission

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Reference no: EM132918173

Question

Geron, Acob and Onate have equities in a partnership of P500,000, P800,000 and P700,000, respectively, and share profits and losses in a ratio of 5:3:2, respectively.

The partners have agreed to admit Reta to the partnership.

Required: Prepare the journal entries to record the admission of Reta to the partnership under each of the following assumptions:

1. Reta invested P400,000 for a 25% interest, and bonus is recorded for reta.

2. Reta invested P800,000 for a 20% interest and bonus is recorded for the old partners.

Withdrawal of a Partner

Greg is retiring from the partnership of Guera, Guil and Greg. The profit and loss ratio is 2:2:1, respectively. After the accountant has posted the revaluation and closing entries, thecredit balances in the capital accounts are: Guera, P530,000; Guil, P430,000 and Greg, P210,000.

Required: Journalize the journal entries to record the retirement of Greg under each of the following unrelated assumptions:

1. Greg retires taking P210,000 of partnership cash for her equity.

2. Greg retires taking P270,000 of partnership cash for her equity

Reference no: EM132918173

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