Partnership and Corpo

 

Fundamentals of Accounting II (Corporation) 28.The following information pertains to ABC partnership of Amor, Bing, and Cora: Amor, capital

200,00 [20%] 0

Bing, capital

[!0%] 200,000

Cora, capital

["0%] !00,000

#n this date, the partners agreed to admit $oll to the partnership. Ass&ming $oll p&rchase "0% of the partner's capital and pas "00, 000 to old partners, how wo&ld this amo&nt (e distri(&ted to them) *00,00 a. 0

*"0,00 0

2"0,00 0

P130,0 b. 00

P14,0 00

P!!,0 00

*++,++ c. 

*++,++ 

*++,++ +

*"0,00 d. 0

*"0,00 0

200,00 0

A-/1: 23 41C5A 41C5A  #6 7-T1T 61# A"" A1T-1

Amo&nts of

transferred capital Amor, 200,00 9 "0% interest of $oll  *00,000 ; capital [20%] 0 9 "0% interest of $oll   *00,000 Bing, capital [!0%] 200,000 9 "0% interest of $oll  *"0 * "0,0 ,000 00 !"0,000   $oll>  Cora, capital ["0%] !00,000

Amor Amo&nts of tran sferred capital

*00,000

#ing *00,000

Cora *"0,000

 

Fundamentals of Accounting II (Corporation)

?cess pament ",000 ?  T#TA  T#T A Cash distri(&tion   EF Answer

!0,000

@",000

DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD   * *!0,000 *@",000 22",000 

Since this is a purchase of interest from ALL partners, the 30,000 and 45,000 P!S"#AL $A%#  $A%# and excess payments of Amor and Bing respectively is their P!S"#AL therefore #"& recorded in the partnership 'oo(s)

ConseG&entl, the new roHt and oss ratio is comp&ted as follows: Amor 20% ? "0%;;  *0% Bing !0% ? "0%  *"% Cora "0% ? "0%  2"% $oll  "0% ;;"0%  *00% F %of $oll  The capital (alances (alances are as follo follows: ws: Amor Balance (efore admission of $oll

Bing 200,000

Corra 200,000

$oll !00,000

 T  Transfer ransfer of capital