Answer to Question #313251 in Finance for Zian

Question

After the tangible assets have been adjusted to fair values, the capital accounts of Rey Refozar and Rogelio Ceradoy have balances of P75,000 and P125,000, respectively. Elmer Dimayuga is to be admitted to the partnership, contributing P50,000 cash to the partnership, for which he is to receive equity of P65,000. All partners share equally in profit.

Required:

1. Prepare the journal entry to record the admission of Dimayuga who is to receive a bonus of P15, 000.

2. Calculated the capital balance of each partner after the admission of the new partner.

Answer 1

1.Debit cash desk Credit Settlements with founders - 50 000

2.