Accounting for Partnership - Practice

3. JJ and PP joined as partners and formed JP Limited Partnership on January 1st, 25x1 They
contributed 200,000 Baht, and 300,000 Baht of cash respectively. During the year JJ drew cash for
personal use for 10,000 Baht and PP for 15,000 Baht. As on ending date, the net profit was
125,000 Baht. The two partners agreed to share the profit and loss as follow:
3.1. Salary provision for JJ 30,000 Baht and PP 40,000 Baht
3.2. interest on capital provision at 5% per annum from the beginning capital
3.3. Remaining profit and loss to be shared by the ratio 2 : 3

Requirements 1. Present the profit sharing at the end on the income statement for the year

ended December 31st , 25x1

2. Prepare the statement of changes in partner’ capital

1.

JP Limited Partnership

Profit Sharing

For period 1 year, ending 31 December,25x1

JJ PP Total

Salary Expense 30,000 40,000 70,000

Interest on capital 5% 10,000 15,000 25,000

Remaining profit shared by ratio 2:3 52,000 78,000 130,000

Total Profit Sharing 92,000 133,000 225,000

2.

JP Limited Partnership

Statement of Changes in Partner’s Capital

For the year ended December 31st , 25x1

JJ PP Total

Capital as on Jan 1st , 25x1 200,000 300,000 500,000

Add Additional Investments -- -

Profit Sharing 92,000 133,000 225,000

292,000 433,000 725,000

Less Drawing 10,000 15,000 25,000

Capital as on Dec 31st ,25x1 282,000 418,000 700,000

Accounting for Partnership Page 50

4. Mr. Nont and Miss Nan are partners and formed Nont & Nan Limited Partnership.

The followings were ending balance of some accounts as of December 31st , 25x3

Beginning Inventories 117,000 Baht

Ending Inventories 65,000 Baht

Sales 1,040,000 Baht

Purchase 455,000 Baht

Freight In 13,000 Baht

Purchase Return 25,000 Baht

Purchase Discount 13,000 Baht

Sales Discount 26,000 Baht

Sales Return 14,000 Baht

Office Salary Expense 58,500 Baht

Advertising Expense 15,000 Baht

Salesman Salary Expense 24,000 Baht

Rental Expense 20,000 Baht

Power Expense 5,400 Baht

Travelling Expense (for salesman) 3,640 Baht

Social Security Expense 4,125 Baht

Miscellaneous Income 3,150 Baht

Interest Income 4,500 Baht

Interest Expense 6,500 Baht

Income Tax Rate 20%

Agreement on profit and loss sharing were:

1. Salary provision for Mr. Nont 40,000 Baht and Miss Nan 30,000 Baht

2. Interest on capital provision at 8% from the beginning capital – Mr. Nont 300,000 Baht,

Miss Nan 200,000 Baht

3. The remaining profit and loss to be shared at 3 : 2

Requirements 1. Prepare the income statement by function (single-step) for the year ended
December 31, 25x3

2. Prepare the detail supplementary for the income statement
3. Present the profit sharing detail at the end of the income statement

Accounting for Partnership Page 51

Nont & Nan Limited Partnership

Income Statement
For the year ended December 31st , 25x3

Unit : Baht

Revenues

Sales (Sheet 1) 1,001,000
Miscellaneous Income 3,150
Interest Income 4,500

1,008,650

Expenses 482,000
Cost of Goods Sold (Sheet 2) 42,640
Selling Expenses (Sheet 3) 88,025
Administrative Expenses (Sheet 4)
Total Expense 612,665
395,985
Profit Before Interest Expense and Income Tax Expense
Less Interest Expense 6,500
Profit Before Income Tax Expense 389,485
Income Tax Expense (20%) 77,897
Net Profit 311,588

Profit Sharing at the end of statement

Nont Nan Total
70,000
Salary 40,000 30,000 40,000
201,588
Interest’s Capital 8% 24,000 16,000 311,588

Remaining profit shared by 3:2 120,952.80 80,635.20

Total 184,952.80 126,635.20

Accounting for Partnership Page 52

Sheet 1 Details Sales

Sales Sales Return 14,000 1,040,000
Less Sales Discount 25,000 39,000

Net Sales 1,001,000

Sheet 2 Details of Cost of Goods Sold 117,000

Beginning Inventories 455,000 430,000
Add Purchase 13,000 547,000
468000 65,000
Freight In 482,000
38,000
Less Purchase Return 25,000
Purchase Discount 13,000

Total Goods available for sale
Less Ending Inventories

Cost of Goods Sold

Sheet 3 Details of Selling Expense 15,000
Advertising Expense 24,000
Salesman Salary Expense 3,640
Travelling Expense 42,640

Total Selling Expense

Sheet 4 Details of Administrative Expense 58,500
Office Salary Expense 20,000
Rental Expense 5,400
Power Expense 4,125
Social Security Expense 88,025

Total Administrative Expense

Accounting for Partnership Page 53

5. The followings were the ending balance as of December 31, 25x3 of some accounts of
SK Contruction Limited Partnership They are Su and Koo were partners:

Beginning Inventories 10,000 Baht
Ending Inventories 4,700 Baht
Capital – Sakchai (beginning) 48,000 Baht
Capital – Sitthisak (beginning) 56,000 Baht
Sales 280,000 Baht
Sales Return 2,000 Baht
Sales Discount 1,000 Baht
Purchase 160,000 Baht
Freight In 800 Baht
Purchase Return 500 Baht
Advertising Expense 2,000 Baht
Office Salary 4,000 Baht
Freight Out 1,500 Baht
Reception Expenses 1,000 Baht
Miscellaneous Expenses 500 Baht
Interest Payment 1,600 Baht
Income Tax Rate 20%

Requirements 1. Prepare the income statement by function (multiple-step) for the year
ended December 31, 2013, with the details of profit sharing at the end
of the statement.
The agreement on the profit and loss sharing were:
- Interest on capital provision at 5% base on the beginning balance
- Salary provision for each partner 12,000 Baht / year
- Bonus provision for Sitthisak – the managing partner at 10% of net
profit after salary and interest on capital
- Remaining profit and loss to be equally shared

2. Prepare any detail supplementary statement as required

Accounting for Partnership Page 54

Sakcharern Limited Partnership Unit : Baht
Income Statement
277,000
For the year ended December 31st ,25x1 165,600
111,400
Revenue from Sales (Sheet 1) 3,500
Less Cost of Goods Sold (Sheet 2) 5,500 9,000
Gross profit 102,400
Less Selling Expenses (Sheet 3)
1,600
Administrative Expenses (Sheet 4) 100,800
Profit Before Finance Costs and Income Tax Expenses 20,160
Less Finance Costs (Interest Expenses) 80,640
Profit Before Income Tax Expense
Less Income Tax Expense 20%
Net Profit

Sheet 1 Details of Revenue from Sales

Sales Sales Return 2,000 280,000
Less Sales Discount 1,000
3,000
Net Sales 277,000

Accounting for Partnership Page 55

Sheet 2 Details of Cost of Sales

Beginning Inventories 160,000 10,000
Add Purchase 800
160,300
Freight In 160,800 170,300

Less Purchase Return 500 500 4,700
Purchase Discount - 165,600

Total Goods available for sale
Less Ending Inventories
Cost of Goods Sold

Sheet 3 Details of Selling Expense

Selling Expense 2,000
Advertising Expense 1,500
Freight Out 3,500

Total Selling Expense

Sheet 4 Details of Administrative Expense 4,000
Administrative Expense 1,000
500
Office Salary 5,500
Reception Expenses
Miscellaneous Expenses
Total Administrative Expense

Accounting for Partnership Page 56

6. Mr. Dusit and Mr. Karnkha joined and formed Dusit Karnkha Limited Partnership. Some of
accounts as of December 31, 25x3 were:

Beginning Inventories 18,000 Baht
Ending Inventories 9,860 Baht
Capital – Dusit (beginning) 60,000 Baht
Capital – Karnkha (beginning) 80,000 Baht
Sales 174,000 Baht
Sales Discount 1,420 Baht
Purchase Return 750 Baht
Purchase 45,890 Baht
Freight In 1,100 Baht
Sales Return 2,450 Baht
Purchase Discount 380 Baht
Advertising Expense 1,200 Baht
Office Salary 3,000 Baht
Utilities Expenses 1,100 Baht
Reception Expenses 900 Baht
Interest Payment 930 Baht

During the year, draws for personal use of Mr. Dusit was 5,000 Baht, and Mr. Karnkha was 8,000
Baht. Income tax rate 20%

Requirements 1. Prepare the income statement by function (multiple-step) for the year
ended December 31, 25x3, with the details of profit sharing at the end of
the statement

The agreement on the profit and loss sharing were:
- Interest on capital provision at 4% from the beginning balance
- Bonus provision for Mr. Dusit at 10% of the net profit
- Remaining profit and loss to be shared at 2 : 3

2. Prepare the detail supplementary statements for the income statement
3. Prepare the statement of changes in partner’ capital for the year ended

December 31, 25x3

Accounting for Partnership Page 57

1. Prepare the income statement by function (multiple-step) for the year ended December 31,
25x3, with the details of profit sharing at the end of the statement

Dusit Karnkha Limited Partnership 170,130
Income statement 170,130

For the year ended December 31st ,25x3 54,000
Revenue : 6,200

Sales (Sheet 1 ) 60,200
Total Revenue 109,930

Expense 930
Cost of goods sold (Sheet 2) 109,000
Sell and Administrative Expense 32,700
Total Expense 76,300

Profit before finance cost and income tax
Less Interest Expense
Profit before tax
Less Income Tax
Net Profit

Net Profit sharing Dusit Kanka Total
Capital Interest 2,400 3,200 5,600
Bonus - 7,630 7,630
Maintain Profit 25,228 37,842 63,070
Total 25,628 48,672 76,300

Accounting for Partnership Page 58

2. Prepare the detail supplementary statements for the income statement

Sheet 1 : Revenue from Sale

Sales 174,400

Less Sales Return 2,450 3,870
170,130
Sales Discount 1,420

Net Sales

Sheet 2 : Cost of Goods Sold

Beginning Inventory 45,890 18,000
Purchase 1,100
Add Freight In 46,990 45,860
63,860
Less Purchase Return 750 1,130 9,860
Purchase Discount 380 54,000

Total inventory available for sale
Less Ending Inventory
Cost of Goods Sold

3. Prepare the statement of changes in partner’ capital for the year ended December 31, 25x3

Dusit Karnkha Limited Partnership

Statement of Changes in Partner’s Capital

For the year ended December 31, 25x3

Dusit Kanka Total

Capital as on Jan 1st , 25x3 60,000 80,000 140,000

Add Additional Investments -- -

Profit Sharing 27,628 48,672 76,300

87,628 128,672 216,300

Less Drawing 5,000 8,000 13,000

Capital as on Dec 31st ,25x3 82,628 120,672 203,300

Accounting for Partnership Page 59

7. The followings were balances of accounts as of December 31, 25x3 after adjusting entries of
Sophon Panich Limited Partnership – of which Mr. Sophon and Mr. Prapan were partners:

Cash 162,000 Sales Discount 600
Account Receivables 87,000 Purchase 190,000
Beginning Inventories 97,300 Freight In
Equipment and tools 250,000 Purchase Discount 7,000
Equipment and tools – 12,000 Freight Out 400
Accumulated Depreciation 4,000
Account Payables Wages 60,000
Accrued Interest Expense 57,500 Rental Expense 24,000
Long-term Borrowings 5,000 Advertising Expense 9,200
Capital – Mr. Sophon 50,000 Utilities Expenses 4,000
Capital – Mr. Prapan 120,000 Travelling Expense 1,200
Drawing – Mr. Prapan 100,000 Interest Payment 6,300
Sales 10,000 Depreciation – Equipment and tools 7,800
Sales Return 590,000
Income Tax Rate 20% 1,000

Additional information:
1. Counted ending inventories was 73,000 Baht
2. Criteria on profit and loss sharing among partners were
2.1. Interest on capital provision at 2% from the beginning capital
2.2. Salary provision for each partner 15,000 Baht/year
2.3. Bonus provision for Mr. Prapan – the managing partner at 10% of net profit after
interest on capital and salary provisions
2.4. Remaining profit and loss to be equally shared

Requirements 1. Prepare the income statement by function (multiple-step) for the year ended December 31,
25x3, with the details of profit sharing at the end of the statement

2. Prepare the statement of changes in partner’ capital for the year ended December 31, 2013
3. Prepare the statement of financial position as of December 31, 25x3

Accounting for Partnership Page 60

7.1 Prepare the income statement by function (multiple-step) for the year ended December 31,
25x3, with the details of profit sharing at the end of the statement

Sophon Panich Limited Partnership
Income Statement

For the year ended December 31st ,2556

Revenue from Sales (Sheet 1) 13,200 Unit : Baht
Less Cost of Goods Sold (Sheet 2) 97,000 588,400
Gross profit 220,900
Less Selling Expenses (Sheet 3) 367,500

Administrative Expenses (Sheet 4) 110,200
Profit Before Finance Costs and Income Tax Expenses 257,300
Less Finance Costs (Interest Expenses)
Profit Before Income Tax Expense 6,300
Less Income Tax Expense 20% 251,000
Net Profit 50,200
200,800

Sheet 1 Details of Revenue from Sales
Revenue from Sales

Sales Sales Return 1,000 590,000
Less Sales Discount 600
1,600
Net Sales 588,400

Accounting for Partnership Page 61

Sheet 2 Details of Cost of Sales

Beginning Inventories 97,300
Purchase
Add Freight In 190,000
7,000

197,000

Less Purchase Return - 400 196,600
Purchase Discount 400 293,900
73,000
Total Goods available for sale 220,900
Less Ending Inventories
Cost of Goods Sold

Sheet 3 Details of Selling Expense

Selling Expense 9,200
Advertising Expense 4,000
Freight Out 13,200

Total Selling Expense

Sheet 4 Details of Administrative Expense 60,000
Administrative Expense 24,000
4,000
Wage Expense 1,200
Rent Expense 7,800
Utilities Expense 97,000
Travelling Expense
Depreciation – Tools Expense
Total Administrative Expense

Accounting for Partnership Page 62

7.2 Prepare the statement of changes in partner’ capital for the year ended

Sophon Panich Limited Partnership

Statement of Changes in Partner’s Capital

For the year ended December 31, 25x6

Sophon Prapan Total
220,000
Capital as on Jan 1st , 25x6 120,000 100,000
200,800
Add Additional Investments 420,800
10,000
Profit Sharing 92,280 108,520 410,800

212,280 208,520

Less Draws 10,000

Capital as on Dec 31st ,25x2 212,280 198,520

Profit Sharing at the end of statement Sophon Prapan Total
Salary 15,000 15,000 30,000
Interest on capital 2,400 2,000 4,400
Bonus 10% - 16,640 16,640
Remaining profit equally shared 74,880 74,880 149,760
92,280 108,520 200,800
Total

Accounting for Partnership Page 63

7.3 Prepare the statement of financial position as of December 31, 25x3

Sophon Panich Limited Partnership 162,000 322,000
Statement of Financial Position 87,000
As at December 31st , 25x3 73000 238,000
560,000
Assets 250,000
Current Assets 12,000 62,500
50,000
Cash 112,500
Account Receivables
Inventories (Ending)
Non-current Assets
Tools & Equipment
Less Accumulated depreciation
Total Assets

Liabilities and Partners’ Equity 57,500
Current Liabilities 5,000

Account Payables
Accrued Interest Expense / Interest Payable
Non - Current Liabilities
Long Term Loan
Total Liabilities
Partners’ Equity
Capital – Sophol
Capital – Prapun
Total Partners’ Equity
Total Liabilities and Partners’ Equity

Accounting for Partnership Page 64

8. Duenpen and Meesook joined as partners and formed Pensook Limited Partnership. The entity
recorded transactions using the fixed capital method.
The partnership agreement set the profit and loss sharing as follow:
1. Interest on capital at 6% from the beginning capital
2. Salary for each partner 10,000 Baht
3. Remaining profit and loss to be equally shared

The trial balance of Pensook limited partnership as of December 31, 25x3 was:

Account Dr. Cr.

Cash 82,000 2,000

Account Receivables 120,000 34,000
102,000
Allowance for Doubtful Account 74,000
146,000
Inventories 74,000
700,000
Prepaid Insurance 1,820 11,820

Office Equipment 140,000 1,069,820

Office Equipment – Accumulated Depreciation

Account Payables

Capital – Duenpen

Capital – Meesook

Draw – Duenpen 2,000

Draw – Meesook 24,000

Sales

Miscellaneous Income

Purchase 480,000

Selling Expenses 80,000

Administrative Expenses 66,000

1,069,820

Additional information:
1. Ending inventories was 62,000 Baht. Allowance for doubtful account to be 1% of sales
2. Depreciation of office equipment to be 10% per year
3. Prepaid insurance was 160 Baht
4. Capital – Meesook to include additional investment on August 10, 2x13 of 8,000 Baht

Accounting for Partnership Page 65

Requirements 1. Enter all adjusting transactions and close the books in general journal
2. Prepare the income statement by function (single-step) for the year ended

December 31, 2013 use income tax rate 20%. Present details of profit
sharing at the end of income statement with all supplementary as required
3. Prepare the statement of financial position as of December 31, 2013
4. Prepare the statement of changes in partner’s capital for the year ended
December 31, 2013

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Accounting for Partnership

Pensuk Limited Partnership
Income statement

For the year ended December 31st ,25x3
Revenue :

Sales
Miscellaneous Income

Total Revenue
Expense

Cost of goods sold (Sheet 1 )
Selling and Administrative Expense (Sheet 2)

Total Expense
Profit before finance cost and income tax
Less Interest Expense
Profit before tax
Less Income Tax
Net Profit

Net Profit sharing -
Capital Interest
Bonus
Maintain Profit
Total

Accounting for Partnership Page 69

Sheet 1 Details of Cost of Sales

Beginning Inventories
Add Purchase

Freight In

Less Purchase Return
Purchase Discount

Total Goods available for sale
Less Ending Inventories
Cost of Sales

Sheet 2 Selling and Administrative Expense 80,000
Selling Expense 66,000
Administrative Expense 7,000
Doubtful Debt 14,000
Depreciation – Office Equipment 1,660
Insurance Expense 168,660

Total

Accounting for Partnership Page 70

Pensuk Limited Partnership

Statement of Financial Position

As on December 31st , 25x6

Assets

Current Assets

Cash 90,000

Account Receivables 120,000 111,000
62,000
Less Allowance for doubtful debt 9,000
160
Inventories (Ending)
140,000
Prepaid Insurance Expense 48,000 263,160

Non-current Assets 92,0000
355,160
Office Equipment
112,232
Less Accumulated depreciation
242,928
Total Assets
355,160
Liabilities and Partners’ Equity 102,000
Current Liabilities 10,232

Account Payables 90,304
Interest Payable 152,624
Partners’ Equity
Capital –
Capital –
Total Liabilities and Partners’ Equity

Accounting for Partnership Page 71

Practice Chapter 5

1. Mod and Meaw were partners with capital of 50,000 Baht and 70,000 Baht respectively. They agreed
to share the profit and loss equally. They admitted May as a new partner. May purchased half of
Mod’s capital at 10,000 Baht
Requirement Complete the entries in the general journal

Genera Journal Page

25x1 Transactions A/C Debit Credit
MD No.
25,000 -
Dec 31 Capital–Mod 25,000
Capital – May

To record admitted mew partner

2. Prim and Plam were partners with capital of 80,000 Baht and 120,000 Baht respectively. They shared
the profit and loss by the capital ratio. They admitted Pek as a new partner. Pek purchased 1/2 of
Prim’s capital and 1/4 of Plam’s capital. The money paid to the two partners was 70,000 Baht
Requirement Complete the entries in the general journal

Genera Journal Page

25x1 Transactions A/C Debit Credit
MD No.

Capital– Prim 40,000 -
Capital – Plam 30,000 -

Capital – Pek 70,000
To record admitted new partner

Accounting for Partnership Page 72

3. Dara and Maya were partners with capital of 100,000 Baht and 120,000 Baht respectively, the profit
and loss shared at 1 : 2. They admitted Vipa as new partner. Vipa purchased 1/4 of Dara’s capital
and 1/3 of Maya’s capital at 55,000 Baht

Requirements 1. Complete the entries in the general journal
2. Calculate the capital of partnership after admission of Vipa as partner

Genera Journal Page

25x1 Transactions A/C Debit Credit
MD No.

Capital - Dara 25,000 -
Capital - Maya 40,000 -

Capital – Vipa 65,000
To record admitted mew partner

Activities Dara Maya Vipa Total
Capital 100,000 120,000 - 220,000
Transfer 1/4 of Dara and 1/3 of Maya capital (25,000) (40,000) - (65,000)
Partners’ capital after admission of Vipa 75,000 80,000 65,000 220,000

Accounting for Partnership Page 73

4. Nid, Noy and Noi were partners with capital of 70,000 Baht, 80,000 Baht and 90,000 Baht
respectively, the profit and loss to be shared at 25% : 35% : 40%. They admitted Napa as a new
partner. Napa purchased 1/5 of their capital and paid 52,000 Baht

Requirements 1. Complete the entries in the general journal
2. Calculate the money the three partners will receive from Napa

Genera Journal Page

25x1 Transactions A/C Debit Credit
MD No.

Capital - Nid 14,000 -
Capital - Noy 16,000 -
18,000 -
Capital - Noi
Capital - Napa 48,000 -

To record admitted mew partner

Activities Nid Noy Noi Total
Former capital 70,000 80,000 90,000 240,000
Transfer capital to Napa (14,000) (40,000) - (65,000)
Partners’ capital after admission of Vipa 75,000 80,000 65,000 220,000

Activities Nid Noy Noi Total

Accounting for Partnership Page 74

5. Som and Sam were partners, profit and loss to be shared at 3 : 5, with capital of 60,000 Baht and
100,000 Baht respectively. They admitted SuSu as partner. SuSu purchased 1/3 of Som’s capital and
1/4 of Sam’s capital at 41,000 Baht

Requirements 1. Complete the entries in the general journal
2. Calculate the capital of partnership after admission of SuSu as new partner
3. Calculate the money the two partners received from SuSu

Genera Journal Page

Transactions A/C Debit Credit
No.
Capital - Som
Capital - Sam 20,000 -
25,000 -
Capital - SuSu
To record admitted mew partner as SuSu 45,000 -

Activities Total
Former capital Total
Transfer capital to Napa
Partners’ capital after admission of Vipa

Activities

Accounting for Partnership Page 75

6. Punpun and PimPim were partners with capital of 60,000 Baht and 100,000 Baht respectively, the
profit and loss to be shared equally. They admitted PaPu as a new partner. PaPu invested 60,000
Baht of cash and 20,000 Baht of inventories. Let PaPu has the capital ratio 1/3 of the capital of
partnership after admission of PaPu. They agreed to share the profit and loss equally.

Requirements 1. Complete the entries in the general journal
2. Calculate the capital of partnership after admission of a new partner

Genera Journal A/C Page
Transactions No. Debit Credit

Accounting for Partnership Page 76

7. Naam and Noon were partners with capital of 90,000 Baht and 120,000 Baht respectively. They
shared the profit and loss at 1 : 2. They admitted Nan as new partner. Nan invested of cash to have
the capital ratio 1/5 of the total capital.

Requirements 1. Calculate the money Nan have to invest
2. Complete the entries in the general journal

1. Calculate the money Nan have to invest

2. Complete the entries in the general journal

MD Genera Journal A/C Page
Transactions No. Debit Credit

Accounting for Partnership Page 77

8. BoyBoy and KiKi were partners and shared the profit and loss at 3 : 2. The statement of financial
position of the partnership as of October 31, 25x1 was

KiKi-BoyBoy Patnership

Statement of Financial Position

As of October 31, 25x1

Assets Liabilities and Partners’ Equity

Cash 144,000 Account Payables 86,000

Account Receivables 6,000 Capital - BoyBoy 120,000

Inventories 16,000 Capital - KiKi 80,000

Shipping Van 130,000

Less Accumulated 10,000 120,000

Depreciation

286,000 286,000

On November 1, 25x1 they admitted TangTang as partner. TangTang invested 10,000 Baht of cash, 3,600
Baht of office materials and 12,400 Baht of inventories. Let TangTang have capital interest equal to the
investment and the profit and loss sharing ratio of 1/5. The former partners shared the profit and loss at
the same ratio.

Requirements 1. Complete the entries in the general journal
2. Prepare the balance sheet as of November 1, 25x1
3. Calculate the profit and loss for the three partners

Accounting for Partnership Page 78

9. MaPrang and Nujjung were partners with capital of 100,000 Baht and 190,000 Baht respectively.
They shared the profit and loss at 2 : 1 and admitted Pan as a new partner. Pan purchased 1/4 of
MaPrang’s capital and 1/5 of Nujjung’s capital at 76,600 Baht. Before the admission of new partner,
the two partners agreed for the following adjusting entries:
1. Add value of inventories for 4,000 Baht
2. Lessen price of fixtures for 10,000 Baht

Requirements 1. Complete the entries in the general journal
2. Calculate the capital of partnership after the admission of new partner

MD Genera Journal A/C Page
Transactions No. Debit Credit

Accounting for Partnership Page 79

10. KaFear and Boy were partners and equally shared the profit and loss, having capital of 200,000 Baht

and 300,000 Baht respectively. They admitted Boss as new partner. Fern purchased 1/4 of both

KaFear and Boy’s capital at total of 80,000 Baht. Before the admission of new partner, the two

partners agreed for the following adjusting entries:

1. Lessen account receivable for bad debt 5,000 Baht

2. Add office equipment – accumulative depreciation 14,000 Baht

3. Accrued expense 4,500 Baht

Requirements 1. Complete the entries in the general journal

2. Calculate the capital of partnership after the admission of new partner

1. Complete the entries in the general journal

Genera Journal Page

25x1 Transactions A/C Debit Credit
MD No.

Capital - KaFear 11,750 -

Capital - Boy 11,750 -

Accounting Receivable 5,000 -

Accumulate Depreciation - Equipment 14,000 -

Accrued Expense 4,500 -

Adjusting business account before admitted

new partner.

Capital - KaFear 47,062 50

Capital - Boy 72,062 50

Capital - Boss 114,125 -

Boss bought a share capital of KaFear and 141,187 50
216,187 50
Boy ¼ each 114,125 -
471,500 -
3. 2. Calculate the capital of partnership after the admission of new partner

Capital – KaFear (200,000 – 11,750 – 47,062.50) =

Capital – Boy (300,000 – 11,750 – 72,062.50) =

Capital – Boss =

Total partnership capital

Accounting for Partnership Page 80

11. Yupin and Rudee were partners with capital of 150,000 Baht and 230,000 Baht respectively, and
shared the profit and loss equally. They admitted Aroon as a new partner by investment 200,000 Baht
of cash to have the capital ratio 1/3 of the total capital of partnership. Before the admission, the two
partners agreed for the following adjusting entries:
1. Add value of land for 30,000 Baht
2. Recognize goodwill to former partners 6,000 Baht
3. Lessen price of truck 16,000 Baht
After the admission of new partner, Let the new partner have the capital ratio of 1/4. The former
partners shared their profit and loss using the same ratio.

Requirements 1. Complete the entries in the general journal
2. Calculate the profit and loss sharing ratios of the three partners

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Accounting for Partnership Page 81

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12. Sommai and Wichan were partners with capital of 56,000 Baht and 64,000 Baht respectively.
They admitted Paisal as a new partner. Paisal invested 24,000 Baht of cash and 80,000 Baht of car, the
capital interest equal to the investment value. The total capital of partnership set as 236,000 Baht. The
partner agreed to share the profit and loss by the capital ratios.

Requirement Complete the entries in the general journal

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Accounting for Partnership Page 83

13. Complete the entries of admission of a new partner in the journal for the following cases:
1. Bass and Ball were partners with capital of 80,000 Baht and 120,000 Baht respectively, they
shared the profit and loss by the capital ratio. They admitted Bell as a new partner with the
investment 80,000 Baht of cash and have the capital interest equal to the investment. The total
capital of partnership set as 300,000 Baht. Goodwill allocated to Bass and Ball.
2. Bass and Ball were partners, having profit and loss sharing ratio of 2 : 1, and capital of 60,000
Baht and 90,000 Baht respectively. They admitted Bell as a new partner. Bell invested 40,000
Baht of cash, having the capital ratio 1/4 of total capital of partnership 200,000 Baht. Goodwill
allocated to Bell.
3. Bass and Ball had the capital of 60,000 Baht each, the profit and loss shared equally. They
admitted Bell as a new partner. Bell invested 80,000 Baht of cash but had the capital interest of
60,000 Baht, also goodwill allocated to Bass and Ball.
4. Bass and Ball were partners, shared the profit and loss at 3 : 2, with capital of 100,000 Baht and
140,000 Baht respectively. They admitted Bell as a new partner. Bell invested 60,000 Baht of
cash, had the capital ratio 25% of the total capital of partnership 300,000 Baht. Bonus allocated
to the new partner.

Accounting for Partnership Page 84

MD Genera Journal A/C Page
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Accounting for Partnership Page 85

14. Pui and Kai were partners with capital of 120,000 Baht and 160,000 Baht respectively. They shared
the profit and loss equally. Nina was admitted as new partner with investment of cash. The capital
interest and calculation of goodwill or bonus are as of the following cases:
1. Nina invested 80,000 Baht of cash, having capital interest equal to the investment with the capital
ratio 1/5 of total capital of partnership set as 400,000 Baht
2. Nina invested 60,000 Baht of cash, having capital ratio 1/5 of total capital 350,000 Baht
3. Nina invested 200,000 Baht of cash, having capital ratio 1/3 of total capital 480,000 Baht
4. Nina invested 80,000 Baht of cash, having capital ratio 1/3 of total capital of partnership 360,000
Baht
5. Nina invested 160,000 Baht of cash, having capital ratio 1/4 of total capital of partnership
480,000 Baht
6. Nina invested 160,000 Baht of cash, having capital ratio 1/2 of total capital of partnership
480,000 Baht
7. Nina invested 80,000 Baht of cash, having capital ratio 1/5 of total capital of partnership 400,000
Baht
8. Nina invested 40,000 Baht of cash, having capital ratio 1/5 of total capital of partnership 350,000
Baht
9. Nina invested 80,000 Baht of cash, having capital ratio 1/4 of total capital of partnership 400,000
Baht

Requirement Complete the entries in the general journal for all cases

Accounting for Partnership Page 86

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Practice Chapter 6

1. Ging, Kaew and Kan were partners, equally shared the profit and loss. They have capital of 70,000
baht, 60,000 baht and 55,000 baht respectively. On January 1, 2014 Kan resigned from the
partnership. Ging purchased Kan’s capital at 55,000 baht.

Requirement Complete the entries in the general journal

General Journal Page…..…..
Credit
Year Transactions A/C Debit
MD No. 55,000 55,000

Apr 1 Capital – Kan 302

Capital – Ging 301
¤Gam resigned from the partnership and
Ging purchased all of Gam’s capital

2. Man, Kane and Oak were partners, equally with capital of 40,000 baht, 50,000 baht and 60,000 baht
respectively. The profit and loss shared at 1 : 1 : 2. On February 10, 2014 Man resigned from the
partnership. Kane and Oak each purchased half of Man’s capital and paid Man total of 55,000 baht.
Requirement Complete the entries in the general journal

General Journal Page…..…..
Credit
Year Transactions A/C Debit
MD No. 40,000 20,000 -
20,000 -
Apr 1 Capital – Man
Capital – Kean
Capital – Oak

¤Man resigned from the partnership and
Kean & Oak purchased all of Man’s capital

Accounting for Partnership Page 89

3. The following is the statement of financial position of Saam Gler Patnership as of April 1, 2014

Saam Gler Patnership

Statement of Financial Position

As of April 1, 2014

Assets Liabilities and Partners’ Equity
Cash
Account Receivables 154,000 - Account Payables 20,000 -
Less Allowance for doubtful account
Office Equipment 32,000 Capital - Petch 60,000 -

2,000 30,000 - Capital - Ling 60,000 -

56,000 Capital - Maam 100,000 -

240,000 240,000

The partner shared profit and loss at 1 : 1 : 2 respectively. On this date Petch resigned from
the partnership. Ling got all Petch’s capital. Before the resignation, the partners agreed on the following
adjusting entries:

1. Set allowance for doubtful account for 10% of account receivables
2. Add price of office equipment to 60,000 baht
3. Set goodwill of partnership for 30,000 baht

Accounting for Partnership Page 90

Requirement Complete the entries in the general journal

General Journal Page…..…..
Credit
Year Transactions A/C Debit
MD No. 1,200 -
4,000 - 8,200 -
Apr 1 Office Equipment 30,000 - 8,200 -
Goodwill 16,400 -

Allowance for doubtful account
Capital - Petch

¤ Capital - Ling
Capital - Maam

Capital - Pech 68,200 -
Capital - Link
68,200 -
Pech resigned from the partnership and
Link purchased partial of Pech’s capital

Accounting for Partnership Page 91

4. Kanya, Somboon and Sudjai were partners with capital of 48,000 baht, 120,000 baht and 78,000 baht
respectively and shared profit and loss at 1 : 2 : 2. On September 1, 25x1 Somboon resigned from the
partnership. The partnership made capital repayment to Somboon for 100,000 baht of cash, 20,000
baht of promissory note due in 1 month with interest of 12% per year

Requirement Complete the entries in the general journal

Year Transactions AC Debit Credit
MD
Sep 1 Capital–Somboon No. Baht St. Baht St.
Cash
Note Payable 120,000 -

To record resigned partner 100,000 -

20,000

Accounting for Partnership Page 92

5. Keng, Kla and Kan were partners and shared profit and loss by the capital ratio. On July 1, 25x1 the

balance of capital account was 80,000 baht, 80,000 baht and 40,000 baht respectively. On this date

Kla resigned from the partnership. Before the resignation, there were adjusting entries of: allowance

for doubtful account 4% of 40,000 Baht account receivables, building – accumulated depreciation

12,000 baht. All accounts to be posted and closed. The partnership made capital repayment to Kla

for 84,100 baht.

Requirement Complete the entries in the general journal

Year 25x1 Transactions AC Debit Credit
MD
No. Baht St Baht St

Sep 1 Accumulated depreciation-Building 12,000 -

Allowance for doubtful account 1,600 -

Capital - Keng 4,160 -

Capital - Kla 4,160 -

Capital - Kan 2,080 -

Adjusting assets and debt before the

resignation

Capital - Kla 84,160 -
¤ Cash
84,160 -
Repayment to Kla

Accounting for Partnership Page 93

6. Nam, Nok and Fon were partners and shared profit and loss at 2 : 3 : 5. They had capital of 96,000

baht, 125,000 baht and 150,000 baht respectively. Nam resigned from the partnership. The

partnership made capital repayment to Nam for 100,000 baht by cheque. The surplus recognized as

Bonus from Nok and Fon.

Requirement Complete the entries in the general journal

Year Transactions AC Debit Credit
MD
Capital - Nam No. Baht St Baht St
Capital - Nok
Capital - Fon 96,000 -

Bank Account 1,500 -
Partnership repayment to Nam
2,500 -

100,000 -

Accounting for Partnership Page 94

7. Ohm, Fang and Toei were partners and shared profit and loss at 2 : 2 : 1. They had capital of 160,000
baht, 150,000 baht and 140,000 baht respectively. On January 1, 25x1 Fang resigned from the
partnership. The partnership made capital repayment to Fang for 25,000 baht of cash, and a car with
book value of 130,000 baht, fair market value of 120,000 baht. The deficit in capital account of Fang
recognized as negative goodwill of Fang.

Requirement Complete the entries in the general journal

Year Transactions AC Debit Credit
MD
Capital - Fang No. Baht St Baht St
Cash
Car 150,000
Goodwill
25,000

120,000

5,000

8. Tai, Lek and Nuj were partners with capital of 60,000 baht, 50,000 baht and 70,000 baht respectively.
They shared profit and loss at 2 : 1 : 2. Nuj resigned from the partnership with the following cases:
1. Tai and Lek each purchased half of Nuj’s capital for 80,000 baht
2. The partnership made capital repayment of cash to Nuj equal to the balance in capital
account
3. The partnership made capital repayment to Nuj 76,000 baht. The surplus recognized as
goodwill of the partnership
4. The partnership made capital repayment to Nuj 73,000 baht. The surplus recognized as
bonus paid from Tai and Lek
5. The partnership made capital repayment to Nuj 60,000 baht. The agreement was to write
off Nuj’s goodwill from the account
6. The partnership made capital repayment to Nuj 58,000 baht. The difference was bonus
to Tai and Lek
7. The partnership made capital repayment to Nuj 72,000 baht. The surplus recognized as
goodwill to Nuj

Accounting for Partnership Page 95

Requirement Complete the entries in the general journal

Year Transactions AC Debit Credit
MD No. Baht St Baht St

1 Capital - Nuj 70,000 35,000
35,000
Capital - Tai

Capital - Lek

Tai and Lek each purchased half of Nuj’s

capital

2 Capital - Nuj 70,000 -
Cash
70,000 -

3 Goodwill 15,000
Capital - Tai 6,000
Capital - Lek 3,000
Capital - Nuj 6,000

To record partnership goodwill 76,000
76,000
Capital - Nuj
Cash

Repayment to Nuj

4 Capital - Tai 2,000
Capital - Lek 1,000
Capital - Nuj
3,000
Capital - Nuj
Cash 73,000
73,000
Accounting for Partnership
Page 96

Year Transactions AC Debit Credit
MD
Capital - Nuj No. Baht St Baht St
5 Cash
Googwill 70,000

60,000

10,000

6 Capital - Nuj 70,000 -
Cash
Capital - Tai 58,000
Capital - Lek 8,000
4,000

7 Capital - Nuj 70,000
Googwill 2,000
Cash
72,000

Accounting for Partnership Page 97

Practice Chapter 7

1. As of January 1, 2013 Gor, Kor and Khor had capital of 80,000 baht, 80,000 baht and 70,000 baht
respectively. The profit and loss to be shared at 1 : 2 : 1. Net profit for the last 3 years were
35,000 baht, 40,000 baht and 33,000 baht respectively. On November 1, 2013 Gor died. The
partners agreed not to liquidate the partnership, and to make capital repayment to Gor’s heir
promptly in cash. The profit sharing to Gor to be calculated from the average profit per year of the
last 3 years.

Requirement 1. Calculate the average profit sharing to Gor
2. Calculate the amount to be paid to Gor’s heir
3. Make the entries in the general journal, together with closing of the

estimated profit sharing account

1. Calculate the average profit sharing to Gor

2. Calculate the amount to be paid to Gor’s heir

3. Make the entries in the general journal, together with closing of the estimated profit sharing
account

Accounting for Partnership Page 98

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