Admission by Investment of Assets Rizal Meds is a medical partnership of Dr. John Pete Sarabla and Dr. Angeles De Guzman

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Admission by Investment of Assets
Rizal Meds is a medical partnership of Dr. John Pete Sarabla and
Dr. Angeles De Guzman, who share profits and losses in a 2:3 ratio.
Dr. Elizabeth Salvador has been asked to join the partnership.
Prior to admitting Salvador, the assets of Rizal Meds were revalued
to reflect their current market values. The revaluation resulted in
medical equipment being increased by P35,000 Prior to the
revaluation, the equity balances for Sarabia and De Guzman were
P201,000 and P289,000, respectively.
Required:
1 Prepare the journal entry for the asset revaluation
2. Prepare the journal entry to record the admission under the
following independent situations:
a.Salvador invested P285,000 for a 30% interest in Rizal
Meds
b. Salvador invested P155,000 for a 25% interest in Rizal
Meds.