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Assignment On Partnership Dissolution

The document summarizes the dissolution of a partnership between Bah and Rah and the admission of new partners Kuh and Dah. Bah sold 1/5 of his interest to Kuh for $8,000 and Rah sold 1/2 of his interest to Dah for $7,000. The new capital accounts and partnership interests are Bah 50%, Rah 27%, Kuh 9%, and Dah 14%.

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Ghillian Mae Guiang
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111 views

Assignment On Partnership Dissolution

The document summarizes the dissolution of a partnership between Bah and Rah and the admission of new partners Kuh and Dah. Bah sold 1/5 of his interest to Kuh for $8,000 and Rah sold 1/2 of his interest to Dah for $7,000. The new capital accounts and partnership interests are Bah 50%, Rah 27%, Kuh 9%, and Dah 14%.

Uploaded by

Ghillian Mae Guiang
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Ghillian Mae B.

Guiang

AC 101

Assignment on Partnership Dissolution ( 20 points )

ADAPTED: Nelson S. Abeleda, Simplified Accounting for Partnership and Corporation, 2015 Edition,
Volume 2

PROBLEM: The capital accounts of Bah and Rah are as follows:

Bah P25,000

Rah 15,000

They share profits equally.

Kuh will buy 1/5 the interest and earnings of Bah for P8,000 and Dah will buy ½ the interest and
earnings of Rah for P7,000..

Required:

a. Entry to record the admission of the new partners.


b. What is the interest of each partner in the new partnership?

A. Entry to record the admission of new partners.

Bah, Capital P 25,000 x 1/5 P 5,000 CC

(Bonus to Bah, 3,000) 8,000 AI

Rah, Capital P 15,000 x ½ P 7,500 CC

(Goodwill to Dah, 500) 7,000 AI

Cash P 8,000

Kuh, Capital P 5,000

Bah, Capital 3,000

Cash P 7,000
Goodwill 500

Dah, Capital P 7,500

B. What is the interest of each partner in the new partnership?

New Capital New Interest (Capital/Total


Capital)

Bah, Capital P 28,000 50%

Rah, Capital 15,000 27%

Kuh, Capital 5,000 9%

Dah, Capital 7,500 14%

Total P 55,500 100%

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