Problem 1.

Mr Jackie Chan and Mr. James Bond are partners who shared profits and losses in an arbitrary ratio of 3:2. Mr Jet Lee was admitted in the partnership by buying 1/4 and 1/2 of the respective old partners interests in the partnership. The partners' capital balances before the purchase were as follows:

Chan 800,000

Bond 1,000,000

Required: Determine each of the partners' capital balances after the admission assuming Jet Lee pays 800,000.

1. Chan______
2. Bond______
3. Lee______

Problem 2.

The statement of financial position for Paraiso and Ligeralde Partnership on June 1, 2018 before liquidation is as follows:

ASSETS LIABILITIES AND CAPITAL

Cash 50,000 Liabilities 200,000

Other Assets 550000 Paraiso, Capital 225,000

Ligeralde, Capital 175,000

TOTAL ASSETS 600,000 TOTAL LIAB AND CAP 600,000

Partners Paraiso and Ligeralde share profits and losses 60:40, respectively. In June, assets with a book value of 220,000 were sold for 180,000, creditors were paid in full, and 20,000 was paid to partners. In July, assets with book value of 100,000 were sold for 120,000, liquidation expenses of 5,000 were paid and cash of 125,000 was paid to partners. In August, the remaining assets were sold for 225,000.

Required:

1. How much cash should Ligeralde receive in June?_______
2. How much cash should Paraiso receive in July?_______
3. How much cash should Ligeralde and Paraiso receive in August? Ligeralde_______ Paraiso_______

Note: Please refer to the attached image. Thank you!

Mr. Jackie Chan and Mr. James Bond are partners who shared profit and losses on an arbitrary ratio of 3:2. Mr. Jet Lee was admitted in the partnership by buying 1/4 and 1/2 of the respective old partners interests in the partnership. The partners' capital balances before the purchase were as follows: J. Chan P800,000 J. Bond 1,000,000 Required: Determine each of the partners' capital balances after the admission assuming Jet Lee pays P800,000. 1. Chan 2. Bond 3. LeeThe statement of financial position for Paraiso and Ligeralde Partnership on June 1, 2018 before liquidation is as follows: Assets Liabilities & Capital Cash P50,000 Liabilities P200,000 Other Assets 550,000 Paraiso, Capital 225,000 Ligeralde, Capital 175,000 Total Assets P600.000 Total Liabilities & Capital P600.000 Partners Paraiso and Ligeralde share profits and losses 60:40, respectively. In June, assets with a book value of P220.000 were sold for P180,000, creditors were paid in full, and P20,000 was paid to partners. In July, assets with book value ofP 100,000 were sold for P120,000, liquidation expenses ofP5,000 were paid and cash of P125,000 was paid to partners. In August, the remaining assets were sold fo P225,000. Required: 1. How much cash should Ligeralde receive in June? 2. How much cash should Paraiso receive in July? 3. How much cash should Ligeralde and Paraiso receive in August? Ligeralde Paraiso