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*Distribution of bonus to original partners:
Sale of 20 percent of Mason's
to Frank
capital interest in the partnership
P3. Admission and Withdrawal of a Partner
60
60,000
$180,000
180
James
12-21
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
×30/90
×60/90
2.
James ( $15,000 10,000
Jiri ( $15,000 $ 5,000)
)
Withdrawal of Mason from the
partnership*
*Distribution of bonus from original partners:
Sale of Mason's partnership
interest to Frank
The new partner will usually pay a bonus to the old partners if the assets of the partnership
are worth more than the book value of the assets or if the new partner sees a future economic
P3. Admission and Withdrawal of a Partner (Concluded)
12-22
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
1.
Josh, John, Hassan, Gain (or
Other Accounts Capital Capital Capital Loss) from
Cash Assets Payable (40%) (40%) (20%) Realization
— — — —
September 1–11, 2014
P4. Partnership Liquidation
Josh, John, and Hassan Partnership
Statement of Liquidation
12-23
P4. Partnership Liquidation (Concluded)
$640,000
12-24
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
1.
Jan Pat Misa Distributed
—
2.
Jan Pat Misa Distributed
—
Income
Remaining Income
Income of Partner
Income of Partner
P5. Distribution of Income: Salaries and Interest
Remaining Income
Income
Alternate Problems
12-25
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
3.
Jan Pat Misa Distributed
—
P5. Distribution of Income: Salaries and Interest (Concluded)
Remaining Loss
Income
Income (Loss) of Partner
12-26
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
×3/10)
Serge ( 24,000
*Distribution of bonus to original partners:
P6. Admission and Withdrawal of a Partner
$80,000
12-27
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
2.
P6. Admission and Withdrawal of a Partner (Concluded)
Computation:
Withdrawal of Sasha and admittance
of Rob
The new partner will usually pay a bonus to the old partners if the assets of the partnership
are worth more than the book value of the assets or if the new partner sees a future economic
12-28
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
1.
a. 144,000 (240,000) $ (96,000)
b. 552,000 (528,000) 24,000
c. 600,000 (924,000) (324,000)
d. (960,000) (960,000)
e.
f.
g.
* Tailor: × 3 / 5 = $32,400
Pavel: × 2 / 5 = 21,600
P7. Partnership Liquidation
$54,000
$54,000
Sale of Accounts Receivable
Sale of Inventory
Explanation
Balance, 7/31/14
Distribution of Gain (or Loss)
from Realization
Sale of Equipment
Payment of Accounts Payable
Distribution of Partners' Share
of Gauri's Deficit*
Distribution of Cash to Tailor
and Pavel
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Sale of accounts receivable
Sale of inventory
Sale of equipment
Payment of accounts payable
Distribution of loss from realization
to the partners
Transfer of Gauri's deficit capital
Distribution of cash to the
P7. Partnership Liquidation (Concluded)
12-30
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
