Admission by Investment of Assets

Partners Quinsay and Buenaventura have capital balances of P100,000 and P40,000 and share income in a ratio of 4:1, respectively. Rementina is to be admitted into the partnership with a 20% interest in the business.

What is the journal entries and computations to record the admission of Rementina for each of the following independent situations:

1. Rementina invested P60,000. Total capital will be P200,000.

2. Rementina purchased the 20% interest by paying Quinsay P22,000 and

Buenaventura P11,000.

3. Rementina invested P32,000. Total capital will be P172,000.