The partner’s capital (income-sharing ratio in parentheses) of Rivadelo, Del Mundo, Galvan and Samson on May 31, 2018, was as follows: Rivadelo (20%) P 60,000 Del Mundo (20%) 80,000 Galvan (20%)...

1. The partner’s capital (income-sharing ratio in parentheses) of Rivadelo, Del Mundo, Galvan and Samson on May 31, 2018, was as follows:

Rivadelo (20%)                        P        60,000

Del Mundo (20%)                        80,000

Galvan (20%)                                70,000

Samson (40%)                                40,000

Total Partners’ Capital                P         250,000

On May 31, 2018, with the consent of Rivadelo, Del Mundo, and Samson:

1. Galvan retired from the partnership and was paid P50,000 cash in full settlement of his interest in the partnership.


2. Mamitag was admitted to the partnership with a P20,000 cash investment for a 10% interest in the net assets of the partnership. No goodwill will be recognized.

Prepare the journal entries to record the foregoing events.

1. The condensed Statement of Financial Position of the partnership of Buenaflor and Gangoso as of December 31, 2018 showed the following:

Total Assets                        P        200,000

Total Liabilities                                  40,000

Buenaflor, Capital                          80,000

Gangoso, Capital                          80,000

On this date, the partnership was dissolved and its net assets transferred to a newly-formed corporation. The fair value of the assets was P24,000 more than the carrying value on the firm’s books. Each of the partners was issued 10,000 shares of the corporation’s P1 par ordinary share.

Prepare the journal entries in the books of the corporation.