AlagangWency - Partnersip Dissolution Short Quiz
AlagangWency - Partnersip Dissolution Short Quiz
Partnership Dissolution
QUIZ:
Use the following information for the next three cases:
Carrots joins the partnership of Apple and Banana. Before the admission of Carrots, the partnership
statement of financial position shows the following information:
Cash 30,000
Accounts receivable 140,000
Inventory 200,000
Equipment 500,000
Total assets 870,000
Case #2: Carrots invests ₱165,000 cash to the partnership in exchange for a 20% interest. Carrots’
capital account is credited for the fair value of the 20% interest he acquired.
Requirements:
a. Provide the journal entry to record the admission of Carrots.
b. Compute for the capital balances of the partners following the admission of Carrots.
c. Determine the profit or loss sharing ratio of the partners after the admission of Carrots.
Case #3: If Carrots is to invest sufficient cash to obtain 2/5 interest in the partnership, how much
should Carrots contribute to the new partnership?
“The name of the Lord is a strong tower; the righteous run to it and are safe.” (Proverbs 18:10)
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-WMG