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    Assignment On Partnership Dissolution

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    Ghillian Mae Guiang
    The document summarizes the dissolution of a partnership between Bah and Rah and the admission of new partners Kuh and Dah. Bah sold 1/5 of his interest to Kuh for $8,000 and Rah sold 1/2 of his interest to Dah for $7,000. The new capital accounts and partnership interests are Bah 50%, Rah 27%, Kuh 9%, and Dah 14%.

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    Assignment On Partnership Dissolution

    Uploaded by

    Ghillian Mae Guiang
    99 views2 pages
    The document summarizes the dissolution of a partnership between Bah and Rah and the admission of new partners Kuh and Dah. Bah sold 1/5 of his interest to Kuh for $8,000 and Rah sold 1/2 of his interest to Dah for $7,000. The new capital accounts and partnership interests are Bah 50%, Rah 27%, Kuh 9%, and Dah 14%.

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    Assignment on Partnership Dissolution

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    The document summarizes the dissolution of a partnership between Bah and Rah and the admission of new partners Kuh and Dah. Bah sold 1/5 of his interest to Kuh for $8,000 and Rah sold 1/2 of his interest to Dah for $7,000. The new capital accounts and partnership interests are Bah 50%, Rah 27%, Kuh 9%, and Dah 14%.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    99 views2 pages

    Assignment On Partnership Dissolution

    Uploaded by

    Ghillian Mae Guiang
    The document summarizes the dissolution of a partnership between Bah and Rah and the admission of new partners Kuh and Dah. Bah sold 1/5 of his interest to Kuh for $8,000 and Rah sold 1/2 of his interest to Dah for $7,000. The new capital accounts and partnership interests are Bah 50%, Rah 27%, Kuh 9%, and Dah 14%.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
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    Ghillian Mae B.

    Guiang

    AC 101

    Assignment on Partnership Dissolution ( 20 points )

    ADAPTED: Nelson S. Abeleda, Simplified Accounting for Partnership and Corporation, 2015 Edition,
    Volume 2

    PROBLEM: The capital accounts of Bah and Rah are as follows:

    Bah P25,000

    Rah 15,000

    They share profits equally.

    Kuh will buy 1/5 the interest and earnings of Bah for P8,000 and Dah will buy ½ the interest and
    earnings of Rah for P7,000..

    Required:

    a. Entry to record the admission of the new partners.


    b. What is the interest of each partner in the new partnership?

    A. Entry to record the admission of new partners.

    Bah, Capital P 25,000 x 1/5 P 5,000 CC

    (Bonus to Bah, 3,000) 8,000 AI

    Rah, Capital P 15,000 x ½ P 7,500 CC

    (Goodwill to Dah, 500) 7,000 AI

    Cash P 8,000

    Kuh, Capital P 5,000

    Bah, Capital 3,000

    Cash P 7,000
    Goodwill 500

    Dah, Capital P 7,500

    B. What is the interest of each partner in the new partnership?

    New Capital New Interest (Capital/Total


    Capital)

    Bah, Capital P 28,000 50%

    Rah, Capital 15,000 27%

    Kuh, Capital 5,000 9%

    Dah, Capital 7,500 14%

    Total P 55,500 100%

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