Exercise 4 12. Admission by Investment: Computing New Partners Cash Investment

Timothy and Paul are partners with capital balances of P 800,000 and 400,000 respectively. They share profits and losses according to the ratio of 60:40. They agree to admit Luke for a 1/4 interest in the partnerships total capitalization.

Required: Compute for the amount of cash that should be invested by the new partner, Luke. Compute for the new P & L ratio of Timothy and Paul.

Exercise 4 13. Retirement of a Partner with Bonus to the Retiring Partner

Mary, Therese, Catherine and Anne are partners sharing profits and losses in a 4:3:3:2 ratio. They have capital balances of P800,000, P600,000, P400,000, and P100,000 respectively. Catherine retires and receives P580,000 from the partnership.

Required: Record the retirement of Catherine.

Exercise 4 14. Withdrawal of a Partner with Bonus to the Remaining Partners

HAPY Trading, Ltd was owned and managed by Hazel, Pia and Yza with the following adjusted capital account balances and profit and loss ratio:

Hazel	50%	55000
Pia	20%	82000
Yza	30%	90000

Hazel decided to migrate to Germany with her family and decided to withdraw from the partnership venture. She was given P50,000 cash representing return of her entire capital from the partnership.

Required: Compute the capital of Yza upon withdrawal of Hazel