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MOUNTAIN VIEW COLLEGE
SCHOOL OF BUSINESS AND ACCOUNTANCY
ACCOUNTING FOR SPECIAL TRANSACTIONS
WORKSHEET#3: PARTNERSHIP DISSOLUTION
INSTRUCTIONS: Answers and all necessary solutions to the requirements must be written in a clean
sheet of paper (all in good form). Submission format must be image file (png or
jpeg).
PROBLEM #1
Capital balances and profit and loss sharing ratios of the partners in the SAM Entertainment are as follows:
Shyne Capital (50%) P 700,000
Athena Capital (30%) 480,000
Melrose Capital (20%) 300,000
Total P 1,480,000
Shyne needs money and agrees to assign half of his interest in the partnership to Harvey for P180,000 cash.
Harvey pays Pl80,000 directly to Shyne.
Required:
1. Prepare the journal entry to record the assignment or half of Shyne's interest in the partnership to Harvey.
