### 200,000 1,150,000

#REF! #REF! 114,675

-12,000 -11,200 -23,200
#REF! #REF! #REF!

8,000
3,000 7,000 10,000
2000 1250 3,250
-2100 -3150 -5,250
2,900 5,100

by purchase
who is/are selling? ALL
How many % of each partner's equity is sold?
The selling partners are selling unequal %
Payment > book value of equity purchased
76,250
ABC 78,000
D buys 30% of the Ph

payment > BV = BV = BV < BV > BV

# of partnerALL are selling One partner ALL are selli ALL are selALL
% of equity different % not an issue same % same % same
Implied revaluation YES

> BV
ALL
different %
YES

payment 78,000 78,000

% of equity purchased/total 0.25 0.25 25% 25%
Total 305,000 305,000
 A 18,750 31,250 15% 25%
B 24,000 20,000 30% 25%
C 33,500 25,000 33.50% 25%
BV of total equity purchased 76,250 76,250 1,750
Implied value 312,000 312,000
Implied revaluation 7,000 7,000
Implied revaluation YES YES
Unequal % Equal %
Cap before admission 125,000 125,000
Initial share on revaluation 3,500 3,500
Equity sold -18750 -31250 % of equity sold
Share of D on revaluation -875 -875 % of total equity purchased
Cap after admission 108,875 96,375

57,575
67,550
78,000
312,000

Assets 7,000 Assets

875 A 3,500 A
525 B 2,100 B
350 C 1,400 C
1750
A cap 32125 A cap
78,000 B cap 20525 B cap
76,250 C cap 25350 C cap
1,750 D cap 78,000 D cap

76,050 125,000 80,000 100,000

3,500 2,100 1,400
128,500 82,100 101,400
25.00%
32125
32125 20525 25350

capital % to be given to the new 12.50%

CC AC diff. CC AC
one 100,000 94,500 -5500 one 100,000 56,000
two 250,000 244,500 -5500 -13,750 two 250,000 206,000
three 320,000 317,250 -2750 three 320,000 298,000
four 80,000 93750 13,750 four 80,000 80,000
total 750,000 750,000 0 total 750,000 640,000

93750
80,000 < 93,750 CC AC
AC of new = investment Revaluation (downward) one 100,000 100,000
AC of old = CC Goodwill to new two 250,000 250,000
TAC = TCC Bonus to new three 320,000 320,000
four 80,000 95,714
total 750,000 765,714.286

Inv > indicated equity share Revaluation (upward)

Goodwill to old
Bonus to old

Q3

CC AC diff.
A 112,000 121,000 9000
B 250,000 255,400 5400
C 180,000 183,600 3600
D 220,000 240,000 20,000
762,000 800000 38,000

30%

12.50%

CC AC CC AC
one 100,000 one 100,000
two 250,000 two 250,000
three 320,000 three 320,000
four 120,000 120,000 four 120,000 120,000
total 790,000 960,000 total 790,000 960,000

Inv > indicated equity share CC AC

one 100,000 108,500
120,000 98750 two 250,000 258,500
AC of new = investment Revaluation- upward three 320,000 324,250
AC of new = investment Goodwill to old four 120,000 98,750
TAC = TCC Bonus to old total 790,000 790,000
Case 1: The non-cash assets were sold for ₱200,000.
40% 40% 20%
Cash NCA Liab A loan A B C
25,000 225,000 20,000 15,000 35,000 80,000 100,000
200,000 -225,000 -10000 -10000 -5000 -25,000
225,000 0 20,000 15,000 25,000 70,000 95,000
-20,000 -20,000
205,000 0 0 15,000 25,000 70,000 95,000
-15,000 -15,000
190,000 0 0 0 25,000 70,000 95,000
-190,000 -25,000 -70,000 -95,000
0 0 0 0 0 0 0

Case 2: The non-cash assets were sold for ₱125,000.

40% 40% 20%
Cash NCA Liab A loan A B C
25,000 225,000 20,000 15,000 35,000 80,000 100,000
125,000 -225,000 -40000 -40000 -20000 -100,000
150,000 0 20,000 15,000 -5,000 40,000 80,000
-20,000 -20,000
130,000 0 0 15,000 -5,000 40,000 80,000
-5,000 5,000
130,000 0 0 10,000 0 40,000 80,000
-10,000 -10,000
120,000 0 0 0 0 40,000 80,000
-120,000 -40,000 -80,000

Case 3: The non-cash assets were sold for ₱87,500. Mr. A is personally solvent.
40% 40% 20%
Cash NCA Liab A loan A B C
25,000 225,000 20,000 15,000 35,000 80,000 100,000
87,500 -225,000 -55000 -55000 -27500 -137,500
112,500 0 20,000 15,000 -20,000 25,000 72,500
-20,000 -20,000
92,500 0 0 15,000 -20,000 25,000 72,500
-15,000 15,000
92,500 0 0 0 -5,000 25,000 72,500
5,000 5,000
97,500 0 25,000 72,500
-97,500 0 -25,000 -72,500
Case 4: The non-cash assets were sold for ₱62,500. Mr. A is personally insolvent.
40% 40% 20%
Cash NCA Liab A loan A B C
25,000 225,000 20,000 15,000 35,000 80,000 100,000
62,500 -225,000 -65000 -65000 -32500 -162,500
87,500 0 20,000 15,000 -30,000 15,000 67,500
-20,000 -20,000
67,500 0 0 15,000 -30,000 15,000 67,500
-15,000 15,000
-15,000
15,000 -10,000 -5,000
67,500 5,000 62,500

40% 40% 20%

Cash NCA Liab A loan A B C
35,000 225,000 20,000 15,000 35,000 90,000 100,000
2,500 -225,000 -89000 -89000 -44500 -222,500
37,500 0 20,000 15,000 -54,000 1,000 55,500
-20,000 -20,000
17,500 0 0 15,000 -54,000 1,000 55,500
-15,000 15,000
-39,000
39,000 -26000 -13000
-25,000 42,500
25,000 25,000
42,500 0 42,500
A 76,250 A 38,125
B 0 B 38,125
C 0 C 0
D pays 78,000 D pays 78,000
implied revaluation implied revaluation

101,050

312000
305,000
7,000
1,750
5,250
1050
101,050

7,000 76,250
3,500 875
2,100 77,125
1,400

19625 A cap 77,125

24525 B cap 525
33850 C cap 350
78,000 D cap 78,000

A cap 39,000
B cap 38650
C cap 350
D cap 78,000

diff.
-44000
-44000
-22000
 0
-110,000

diff.
0
0
0
15,714
15,714

18,000

8500
8500
4250
-21,250
0