Admission by Purchase of InterestGoodwill Method Reyes and Tamayo are partners in a retail business dividing profits 60 percent to Reyes and 40 percent to Tamayo. Their capital balances at Dec 31, 2006 are as follows: Reyes. Capital Tamayo, Capital Total Capital P180,000 180,000 P360,000 Partnership assets and liabilities have book values equal to fair values. The partners agreed to admit Dayag into the partnership. Dayag purchased a one-third interest in partnership capital and profits directly from Reves and Tamayo (one-third of each of their capital accounts for P150,000 Required Prepare the journal entries for the admission of Dayag into the partnership, assuming that partnership assets are revalued