Disso-Withdrawals - chapter 5 parcor lupisan baysa PDF

Preview

Summary

Accounting for Partnership—Chapter 5:Change in Capital Structure by Withdrawal, Retirement, Death or Incapacity of a PartnerExercise 5- Possible entries to record Dees’ retirement a. Asset RevaluationOther Assets 100,Doctor, Capital 20,Cash 14,Dantes, Capital 15, Dungca, Capital 10,b. BonusDizon, Ca...

Description

Accounting for Partnership—Chapter 5: Change in Capital Structure by Withdrawal, Retirement, Death or Incapacity of a Partner

Exercise 5-1 1. Possible entries to record Dees’ retirement a. Asset Revaluation Other Assets Dee, Capital Cash Dantes, Capital Dungca, Capital

30,000 20,000 25,000 15,000 10,000

b. Bonus Dee, Capital Dantes, Capital Dungca, Capital Cash

20,000 3,000 2,000 25,000

2. Dantes will prefer the asset revaluation method. The gain compared to the alternative is 3,000.

Asset Revaluation

Dantes, Capital

Dungca, Capital

47,000

28,000

30,000

65,000

40,000

(30,000)

(15,000)

(15,000)

50,000

25,000

(3,000)

3,000

Balances after retirement of Dee under the bonus method Balances after retirement of Diaz under the asset revaluation method Depreciation on asset revaluation (divided equally) Balances after depreciation Net advantage (disadvantage) of using

the bonus method

Exercise 5-2 1. Desta is paid 90,000; no asset revaluation Destia, Capital Dayrit, Capital Dayag, Capital Cash

80,000 7,500 2,500 90,000

2. Desta is paid 96,000; with asset revaluation Other Assets Diesta, Capital Cash Dayrit, Capital Dayag, Capital

80,000 80,000 96,000 48,000 16,000

Exercise 5-3 Daria, capital balances as of July 1, 2014 Drawing Share in the net income Daria, new interest in the partnership

(

25,000 4,000) 8,000 29,000

1. Capital increases through asset revaluation Other Assets Daria, Capital Cash Ditas, Capital Dulce, Capital

10,000 29,000 33,000 3,000 3,000

2. Bonus from the remaining partners Daria, Capital Ditas, Capital Dulce, Capital Cash

29,000 2,000 2,000 33,000

3. Ditas will prefer either since either method will have the same effect to his capital balances. Asset Revaluation

Ditas, Capital

Dulce, Capital

33,000

48,000

10,000

38,000

53,000

(10,000)

(5,000)

(5,000)

33,000

48,000

0

0

Balances after retirement of Daria under the bonus method Balances after retirement of Daria under the asset revaluation method Depreciation on asset revaluation (divided equally) Balances after depreciation Net advantage (disadvantage) of using the bonus method

Exercise 5-4 1. Each remaining partners will purchase 50% Dolor, Capital Damian, Capital Damaso, Capital

40,000 20,000 20,000

2. Sale of Interest to the Partnership; bonus method Dolor, Capital Cash Damian, Capital Damaso, Capital

40,000 32,000 4,000 4,000

3. Sale of Interest to the Partnership; asset revaluation Other Assets Dolor, Capital Cash Damian, Capital Damaso, Capital

30,000 40,000 46,000 9,000 15,000

Exercise 5-5 1. Dizon purchase Domingo’s interest Domingo, Capital Dizon, Capital

70,000 70,000

2. Partnership acquire Domingo’s interest; bonus method Dencio, Capital Doctor, Capital Dizon, Capital Domingo, Capital Cash

10,000 5,000 5,000 70,000 90,000

3. Partnership acquire Domingo’s interest Domingo, Capital Other Assets Notes Payable Dencio, Capital Doctor, Capital Dizon, Capital

70,000 100,000 90,000 40,000 20,000 20,000

Exercise 5-6 1. Partnership acquire Daza’s interest; bonus method Daza, Capital Dimla, Capital Distor, Capital Cash

12,000 1,440 960 14,400

2. Partnership acquire Daza’s interest; bonus method Daza, Capital Cash Dimla, Capital Distor, Capital

12,000 9,600 1,440 960

Problem 5-1 1. Equal cash to the book value of his interest Delfin, Capital Cash

200,000 200,000

2. Bonus method Diokno, Capital Decena, Capital Delfin, Capital Cash

30,000 30,000 200,000 260,000

3. Asset revaluation method Other Assets Delfin, Capital Cash Diokno, Capital Decena, Capital

180,000 200,000 260,000 60,000 60,000

4. Bonus Delfin, Capital Cash Diokno, Capital Decena, Capital

200,000 160,000 20,000 20,000

5. Asset Revaluation Diokno, Capital Decena, Capital Delfin, Capital Other Assets Cash

25,000 25,000 200,000 75,000 175,000

Merchandise Inventory Dahlia, Capital Danao, Capital Daylan, Capital

7,000

Problem 5-2

1. 1,750 3,500 1,750

Allowance for Doubtful Accounts Dahlia, Capital Danao, Capital Daylan, Capital

1,000 250 500 250

Or 1. Merchandise Inventory Capital Adjustment Account

7,000

Allowance for Doubtful Accounts Capital Adjustment Account

1,000

Capital Adjustment Account Dahlia, Capital Danao, Capital Daylan, Capital

8,000

7,000

1,000

2,000 4,000 2,000

2. Dahlia, Capital Notes Payable Cash

27,000 25,000 2,000

Problem 5-3 1. Damo, Capital 120,000

Capital Balance, December 31, 2014 Share in profit/loss (12,000) Withdrawals (25,000) Capital balances 83,000 as of January 1, 2015 2. Damo, Capital Datu, Capital Dayan, Capital Cash Inventory

Dayan, Capital 70,000

Datu, Capital 80,000

(8,000) (25,000) 37,000

(20,000) (25,000) 35,000

10,500 17,500 37,000 30,000 35,000

3a. Other Assets Dayan, Capital Cash Damo, Capital Datu, Capital

50,000 37,000 47,000 15,000 25,000

Dayan, Capital Damo, Capital Datu, Capital Cash

37,000 3,750 6,250 47,000

3b....