Topic: Partnership dissolution

Case 3: Amownt of increstment Carrot wants to invest for a 20% in the net assets and profits of the parthership Repainoments: If no bonus is allowed, how much should Carrot invest, and what would be the new P/L ratio of the partners after Carrot's admission? Case 4 Iscestment in the partnership - Bonus to new partner Carrot invests P100,000 for a 20% interest in the net assets and profits of the partnership. No goodwill is recognized. Requivements: Provide the entry and compute for the capital balances of the partners after Carrot's admission. Case 5: Iroestment in the partnership - Bonus to old partners Carrot invests P180,000 for a 20% interest in the net assets and profits of the partnership. No goodwill is recognized. Requirements: Provide the entry and compute for the capital balances of the partners after Carrot's admission. Withdrawal, retirement or death of a partner 2. Partners A, B and C had the following capital balances on Jan. 1, 20xd: A, Capital (50\%) P320,000; B, Capital (30\%) P192,000; and C, Capital (20\%) P128,000. Partner A decided to retire on Sept. 1, 20x1. The partnership earned profit of P800,000 from Jan. 1 to Aug. 31, 20x1 and the partners had the following capital withdrawals during that period: A, P40,000; B, P60,000; and C,P30,000. Case 1: Purchase of interest by remaining partner Partner B purchases Partner A's interest for P700,000. 101 Requirements: Provide the entry and compute for the capital balances and P/L ratio of the partners after A 's retirement. Case 2: Settlement of interest by partnership The partnership pays Partner A P700,000 for his interest. Requirements: Provide the entry and compute for the capital balances and P/L ratio of the partners after A s retirement. Case 3: Settlement of interest by partnership The partnership pays Partner A P650,000 for his capital. Requirements: Provide the entry and compute for the capital balances of the partners after As retirement. Incorporation of a partnership 3. Use the information in Problem 2 above. However, instead of Partner A retiring, the partnership is converted into a corporation on Aug. 31, 20x1. The corporation issued 1,000 preference shares with par value of P200 per share to each of the partners and even multiples of ordinary shares with par value of P50 per share for their remaining interests. Requirements: Compute for the number of shares issued to each of the partners. Case 7: The partnership is converted into a corporation. The corporation issues 6,000,3,000 and 1,000 ordinary shares to A, B and C respectively. If the ordinary shares have par value of P10 per share, how much is the resulting share premium? PROBLEM 6: FOR CLASSROOM DISCUSSION Admission of a new partner 1. Carrot joins the partnership of Apple and Banana. The partnership's statement of financial position before Carrot's admission is as follows: The following adjustments are determined: a. The recoverable amount of the accounts receivable is $120,000. b. The inventory has a net realizable value of P160,000. c. The equipment has a fair value of $450,000. d. Unrecorded liabilities amount to $20,000. Case 1: Purchase of interest from one partner Carrot acquires half of Banana's capital interest for P800,000. Requirements: Provide the entry and determine the capital balances and P/L ratio of the partners after Carrot's admission. Case 2: Purchase of interest from more than one partner Carrot purchases 20% of Apple's and Banana's capital interests for P800,000. Requirements: Provide the entry and determine the capital balances of the partners after Carrot's admission