FOR ACCOUNTING 112 NDMU STUDENTS DISSOLUTION PROCESS

1. CHAPTER III DISSOLUTION- CHANGES IN OWNERSHIP

2. 1. DEFINITION 2. CAUSES OF DISSOLUTION 3. ADMISSION OF A PARTNER REPORTER: Jomari Cabardo

9. Purchase of an Interest From Existing Partners By: Jennylou Enitorio

25. Investment of Assets in a Partnership By: Cecille Shyne Deseo

27. Definition of TERMS

32. The following are the illustrations of the various problems involving admission of a new partner by investment..

33. Agreed Capital is Given

39. Agreed Capital is Not Given

42. 1. Bonus Method ENTRY: Cash 100 000 Conde, Capital 80 000 Calma, Capital 15 000 Castro, Capital 5 000 Solution: Contributed Capital Agreed Capital Bonus Calma P 200, 000 P 215, 000 P 15, 000 Castro 100, 000 105, 000 5,000 Conde 100, 000 80, 000 (20, 000) TOTAL P 400, 000 P 400, 000 ---

43. 2. Positive Asset Revaluation Method ENTRIES: Other Assets 100 000 Calma, Capital 75 000 Castro, Capital 25 000 Cash 100 000 Conde, Capital 100 000 Solution: Contributed Capital Agreed Capital Asset revaluation Calma P 200, 000 P 275, 000 P 75, 000 Castro 100, 000 125, 000 25,000 Conde 100, 000 100, 000 --- TOTAL P 400, 000 P 500, 000 P 100, 000

44. 1. Bonus Method ENTRY: Cash 80 000 Calma, Capital 11 250 Castro, Capital 3 750 Conde, Capital 95 000 Solution: Contributed Capital Agreed Capital Bonus Calma P 200, 000 P 188, 750 (P 11, 250) Castro 100, 000 96, 250 (3, 750) Conde 80, 000 95, 000 15, 000 TOTAL P 380, 000 P 380, 000 ---

45. 2. Negative Asset Revaluation Method ENTRIES: Calma, Capital 45 000 Castro, Capital 15 000 Other Assets 60 000 Cash 80 000 Conde, Capital 80 000 Solution: Contributed Capital Agreed Capital Asset revaluation Calma P 200, 000 P155, 000 (P 45, 000) Castro 100, 000 85 , 000 (15,000) Conde 80, 000 80, 000 --- TOTAL P 380, 000 P 320, 000 (P 60, 000)

48. Withdrawal and Retirement of a Partner