ACCT 2A&B: Accounting for Partnership & Corporation BCSV Debit 710,000 335,000 225,000 Credit Cash Accounts Receivables PPE Accounts payable Julia, Capital Julia, Drawing Joshua, Capital Joshua, Drawing Sales Sales returns Purchases 300,000 625,000 100,000 375,000 150,000 1,525,000 25,000 980,000 300,000 Operating expenses Additional information as of March 31, 2014: 1. Inventories: Supplies, P12,500; Merchandise, P365,000 2. Prepaid taxes and insurance, P 5,000 3. Accrued expenses, P 7,500 4. Depreciation on PPE, 20% per annum 5. Income tax rate is 30% Determine the following: 6. Net Income (loss) 7. Joshua's share in net income (loss) 8. Julla's share In net Income (loss) 9. Joshua's ending capital balance

ACCT 2A&B: Accounting for Partnership & Corporation BCSV Debit 710,000 335,000 225,000 Credit Cash Accounts Receivables PPE Accounts payable Julia, Capital Julia, Drawing Joshua, Capital Joshua, Drawing Sales Sales returns Purchases 300,000 625,000 100,000 375,000 150,000 1,525,000 25,000 980,000 300,000 Operating expenses Additional information as of March 31, 2014: 1. Inventories: Supplies, P12,500; Merchandise, P365,000 2. Prepaid taxes and insurance, P 5,000 3. Accrued expenses, P 7,500 4. Depreciation on PPE, 20% per annum 5. Income tax rate is 30% Determine the following: 6. Net Income (loss) 7. Joshua's share in net income (loss) 8. Julla's share In net Income (loss) 9. Joshua's ending capital balance

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 3PA

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X and Y formed a partnership on March 1, 2018 and agreed to share profit 80% and 20%, respectively. Xinvested cash of P150,000. Y invested no assets but has a specialized expertise and manages the firm fulltime. There were no other investments nor withdrawals during the year. The partnership contractprovides for the following: • Capital accounts are to be credited annually with interest at 10% or original capital contribution.• Y is to be paid a monthly salary of P3,000• Y is to receive a bonus of 20% of profit before deducting interest on capital, salary and the bonus• Bonus, interest and salary are to be considered as expense of the partnership The 2018 condensed income statement for the partnership includes the following:Revenues 550,000Expenses (including salary, interest and bonus) (375,000)Net Income 175,000 How much is the bonus given to Y? ________
Income summary shows a credit balance of 1,800,000 at the end of the first year of operations.1. By what amount will the capital balance of MAR182 be credited on January 1, 2018?2. By what amount will the capital balance of MAR186 be credited on January 1, 2018?3. How much is the total assets of the partnership at the date of formation?4. What is the net effect of the adjustments made on January 1 to MAR186 capital balance?5. What is the weighted average capital of MAR182 in 2018?6. How much is the bonus given to MAR186?7. How much is the share of MAR182 in the partnership net income?8. How much is the share of MAR186 in the partnership net income?9. What is the ending adjusted capital balance of MAR182?10. What is the ending adjusted capital balance of MAR186?
The following balances as at October 31, 2016 for the Partnership of Kathy, Lilia and Minda were as follows: Cash P50,000 Non-cash assets 400,000 Liabilities 15,000 Kathy, Capital 127,500 Lilia, Capital 82,500 Minda, Capital 225,000 Kathy has decided to retire from the partnership on October 31. The estimated profit of October 31 is P100,000. Their profit and loss ratio is 3:3:4 to Kathy, Lilia and Minda, respectively. Required: - Compute for the Total Partners Equity after dissolution. - Compute New Capital Accounts of Remaining partner using Bonus Method and Revaluation Method under the following INDEPENDENT cases: a. Kathy will be paid by the partnership for P170,000 b. Kathy will be paid by the partnership for P100,000
B, G, and C put up a partnership on April 1, 2017. The following capital balances were taken from the books on December 31, 2017, before closing net income: B, Capital P84,000 G, Capital 114,000 C, Capital 92,000 During the year, B permanently withdrew P10,000 cash while C invested a property with a fair value of P22,000. The partners agreed to distribute profits for the first year as follows: Annual salary of P30,000 to G and P25,000 to C. Allow a 5% interest to each partner on their capital at the inception of the partnership. Allow a 20% bonus to B based on net income after salaries, interests, and bonus. Any remaining undistributed profit or loss will be distributed in the following manner: In the ratio 2:3:5, if under-allocated Equally, if over-allocated Case 1: The net income of the partnership is P100,000 during the year 2017. How much is the bonus given to B? O 7,375 0 7.979 0 7.475 O 8.054
Yaw, Mary, and Hanna have been in partnership for a number of years sharing profit in the ratio 6:5:3. Work-in-progress was not brought into the accounts. The balance sheet of the partnership as at 31" March 2020 showed the following position: GH c000 GH c000 Tangible Assets 25,000.00 G oodwill Capital account: 22,400.00 Y aw 12,950.00 Maгy 18,000.00 D ebto rs 73,500.00 Hanna 8,700.00 balance at bank 10,450.00 Sundry C reditors 67,600.00 119,300.00 119,300.00 On 31" March 2020, Yaw retired from the partnership, and it was agreed to admit Osei as a partner on the following terms: i. Goodwill in the old partnership was to be revalued to two years purchase of the average profit over the last three years. The profit of the last three years have been GHC12,400,000; GHC13,600,000; GHC14,005,000. Goodwill was to be written off in the new partnership. ii. Yaw is to take his car out of the partnership assets at an agreed value of GHC1,000,000. The car had been included in the accounts as at 31…
The following balance sheet for the partnership of Juan, Ponce and Enrile were taken from the books on November 30, 2011: Cash P 80,000 Liabilities P 200,000 Other Assets 720,000 Juan, Capital 148,000 Ponce, Capital 260,000 Enrile, Capital 192,000 The partners’ agreed to distribute the profits as follows; Annual salaries to Juan and Ponce of P 6,000 each.6 % interest on beginning capital10 % bonus to Ponce (the bonus to be treated as an expense after salaries and interest)Remaining profit – 40:40:20 respectively. If the net income of the partnership was P 122,400 during the two-month period ending December 31, 2011, the total share of Ponce in the net income is; a. P 61,440 b. P 55,600 c.…
Problem Solving: On January 1,2018, John and Frank decided to form a partnership. At the end of the year, the partnership made a net income of P120,000. The capital accounts of the partnership show the following transactions: John, Capital Frank, Capital Dr. Cr. Dr. Cr. Jan. 1 P40,000 P25,000 a Apr. 1 P5,000 Jun. 1 10,000 Aug. 1 10,000 Sep. 1 P3,000 ta Oct. 1 5,000 1,000 Dec. 1 4,000 5,000 55. Assuming th at the partnership's net income is divided on the basis of the average capital ratio, the share of John in the profits is? 50. Assuming that the partnership's net income is divided on the basis of the average capital ratio, the share of Frank in the profits is? 57. Assuming that an interest of20% per annum is given on average capital and the balance of the profits is divided equally, the share of John in the profits shall be: 58. Assuming that an interest of 20% per annum is given on average capital and the balance of the profits is divided equally, the share of Frank in the profits…
For the year 2021, the partnership of AMMAR and BANU realized a net profit of P240,000. The capital accounts of the partners show the following postings: Jan. 1 May 1 July 1 Aug. 1 Oct. 1 AMMAR Debit Credit Debit Credit 20,000 10,000 120,000 BANU 10,000 10,000 5,000 80,000 20,000 Question 5 If the profits are to be divided based on average capital, how much will be the share of AMMAR?
X and Y enter into a partnership on 1st April, 2014 with capitals of $ 20,000 and $ 40,000 respectively. As per partnership Deed. X and Y are entitled to receive Salary of $ 200 per month and $ 300 per month respectively. (i) (ii) (iii) Interest on Capital is to allowed at the rate of 6% p.a. The profit sharing ratio of X and Y will be 1:1. Profit earned during the year 2014-15 amounted to $ 50,000. Give Journal entries and prepare the Profit and Loss Appropriation Account.
3. Cabello and Dacanay are partners in a trading company. During 2020, they withdrew their salary allowances of P250,000 and P375,000, respectively. Profits and losses are shared in the ratio of 3:2. The income summary account before any profit allocation has a credit balance of P750,000. The partners' capital account show the following: Cabello Dacanay P750,000 P500,000 Beginning balances Additional investments 250,000 Withdrawals other than salary allowances (250,000) (125,000) 125,000 What are the capital balances of the partners for the year 2020 after closing income summary and withdrawals accounts? Cabello a. P700,000 b. P450,000 Dacanay P675,000 P300,000 P425,000 c. P575,000 d. P950,000 P1,050,000
Problem: Nadine and Lysa formed a partnership on Jan. 01, 2019. Below the details of their capital accounts for 2019: Nadine, Capital Lysa, Capital 1-Jul 200,000 500,000 1-Jan 300,000 300,000 31-Dec 150,000 450,000 On the same year, the partnership generated a profit of P200,000. Required: Determine the Profit Ratio and the share on profits for Nadine and Lysa on the following agreements: A. If agreement is based on Capital Contributions: Nadine Lysa 1 Profit Ratio 4 Share on Profit B. If agreement is based on Average Capital: Nadine Lysa 5 Profit Ratio Share on Profit 2. CO 3.
Partnership books showed net profit for the six months ended December 31, 2014 was P180,000.However, upon review of partnership records, the following errors were disclosed:a. Accrued expenses not recorded at year end- P6,000b. Income received in advance, not adjusted- P10,000c. Unused portion of 1 year insurance paid- P5,000.d. Income already earned, not yet recorded- P15,000.How much is the adjusted profits before profit distribution?a. 180,000b. 194,000c. 195,000d. 184,000