QUESTION 10 A Private Joint Stock Company must allocate 15% of its net profit each year to create a reserve. ( ) True False QUESTION 11 Which of the following companies may be formed by only one UAE natural person? O a. A Private Joint Stock Company Ob. A Public Joint Stock Company c. A Limited Partnership Od. None of the above
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- 2. 60 Omanis want to form a company with a total capital of 20000 (OMR), wherein all want to have limited liability. Can they form any limited company in Oman or not, explain?510 | Basic Financial Accounting and Reporting 2021 Edition by Prof. WIN Ballada SCORE: NAME: PROFESSOR: SECTION: Problem #9 Order of Priority On Jan. 1, 2020, the Mones, Pitular and Tuazon Partnership was formed with initial investments by the partners as follows: P2,000,000 1,000,000 1,000,000 Mones Pitular Tuazon According to the partnership agreement, profit or loss is to be divided among the partners as follows: 1. Salaries of P120,000 for Mones, P60,000 for Pitular and P60,000 for Tuazon. 2. Interest at 5% on the original capital balances. 3. The remainder to be divided among Mones, Pitular, and Tuazon in a ratio of 4:1:1, respectively. The partnership reported profit of P350,000 for the year ended Dec. 31, 2020. Required: Determine the partners' share in the profit under each of the following independent situations: 1. Partner's salaries and interest on capital balances should be fully allocated and any deficiency between these allocations and profit is to be divided among…21. The capital balances in BNM Partnership are: BBB, capital P600,000; NNN, capital 500,000and MMM, capital 400,000 and income ratio is 5:3:2, respectively. The BNM Partnership is formed by admitting FFF to the company with cash investment of P600,000 for a 25% interest in capital. What is the amount of bonus to be credited to MMM capital in admitting FFF? A. 100,000B. 75,000C. 37,500D. 15,000
- 37. AAA, BBB, CCC, and DDD are partners sharing profits in the ratio of 3/21, 4/21, 6/21,and 8/21. Their capital balances on December 31, 2030 are as follows: AAA P 500BBB 12,500CCC 12,500DDD 4,500 The partners decide to liquidate their firm and they accordingly convert the noncash assets into P11,600 cash. After paying liabilities of P1,500, they have P11,100 to divide. How much was the distribution to partner CCC?a. P0b. P3,560c. P4,160d.P7,10020) IAS 28 Investment governs the identification of associates. Which of the following is true? Select one: O a. The investing equity owned by its hare since the incorporation of the investee equity O b. The investor holds greater than 20% but less than 50% of the entity power of the investee Oc. The investing entity has some influences over entities in the same industry. Od. The investor often trades with the investProblem III The following are the capital balances and share in each profit of Ring Partnership: Aragorn 300 50% Legolas 200 30% Gimli 200 20% 10. If Gandalf was admitted by paying the partners P100 for 10% interest in the firm, how much will be the capital of Aragorn after the admission if implied goodwill was recorded?
- GWS and BCP organized the GB Partnership on January 1, 2018. The following entries were made in their capital accounts during 2018. Debit Credit GWS, Capital: January 1 April 1 October 1 P315,000 P105,000 175,000 Debit Credit ВСР, Саpital: January 1 March P413,000 1 September 1 November 1 52,500 105,000 94,500 Required: А. If the partnership profit for the year 2018 computed before salaries or interest is P217,000, determine its distribution between the partners under each of the following independent profit-sharing agreements: (1) Interest at 6% is allowed on average capital investments and the remainder of the profit is divided equally. (2) A salary of P126,000 is to be credited to BCP, 6% interest is allowed on each partner on his ending capital balance and the remainder of the profit in the ratio of 3:2. Salaries are allowed GWS and BCP in amounts of P119,000 and P133,000, respectively, and the remaining profit or resulting loss is divided in the ratio of average capital balance.…Question Content Area Which of the following is true regarding a limited liability company? a.combines the attributes of a partnership and a corporation b.provides tax and liability advantages to the owners c.makes up 10% of business organizations in the United States d.All of these choicesPROBLEM 1 (FTG REVISED) VAL, KHU, and LAWRENCE are partners in VAKHULAW CO. sharing profits in the ratio of 3:3:2. Investments are P600,000, P400,000, and P300,000, respectively. The partners agreed to admit TYONG-GO on the following basis: TYÖNG-GO is to pay VAL, P400,000 for 1/2 of VAL's interest; TYONG-GO is also to invest P300,000 in the business. The partners agreed that revaluation of assets must be determined based on the agreed capital. The total capital of the partnership is to be P2,000,000, of which TYONG-GO's interest is to be P500,000 upon admission. REQUIRED: 1. Prepare a statement of partners equity that will show the capital balances of VAL, KHU, LAWRENCE and TYONG-GO after admission of TYONG-GÒ, respectively. Present your solution and the statement in good form. 2. Prepare the entries upon admission of TYONG-GO.
- Problem III The following are the capital balances and share in each profit of Ring Partnership: Aragorn 300 50% Legolas 200 30% Gimli 200 20% 12. If Gimli withdrew from the firm and received P280, how much is the capital of Legolas if prior to withdrawal, the firm recorded a goodwill of P200.11. On April 1, 2020, Abrenica and Banggayan pooled their assets to form a partnership, with the firm to take over their business assets and assume the liabilities. Partners capitals are to be based on net assets transferred after the following adjustments: a. Banggayan inventory is to be increased by P21,000; b. Allowance for doubtful accounts of P7,000 and P10,500 are to be set up in the books of Abrenica and Banggayan, respectively; Accounts payable of P28,000 is to be recognized on Abrenica's books. C. The individual trial balances on April 1, 2020, before adjustments follow: Abrenica Banggayan P931,000 Assets P525,000 Liabilities 35,000 241,500 Capital 490,000; 549,500 How much is the capital of Abrenica after the above adjustments to his books? a. P490,000 b. P455,000 C. P479,500 d. P462,0002020.12.28 15:04 NAME: SCORE: SECTION: PROFESSOR: Problem #23 The condensed statement of financial position of the partnership of Buenaflor and Gangoso as of Dec. 31, 2019 showed the following: Total Assets P200,000 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. Required: Prepare the journal entries in the books of the corporation.