Additional information: 1. Nikifa, Fatihah & Wakeel agree on annual salaries of RM7,100, RM8,400 and RM6,300 respectively. The profit-sharing ratio of the partnership are to be determined based on capital balance 2. at the beginning of the year. REQUIRED: (a) Prepare journal entries for initial investments by Nikifa, Fatihah & Wakeel.

Additional information: 1. Nikifa, Fatihah & Wakeel agree on annual salaries of RM7,100, RM8,400 and RM6,300 respectively. The profit-sharing ratio of the partnership are to be determined based on capital balance 2. at the beginning of the year. REQUIRED: (a) Prepare journal entries for initial investments by Nikifa, Fatihah & Wakeel.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The partnership of Chichay and Joacquin was formed on February 28, 2021. On this date, Chichay invested P100,000 cash and an office equipment valued at P175,000. Joacquin invested P80,000 cash; merchandise valued at P120,000 and Building valued at P340,000 subject to a mortgage of P40,000 which the partnership will assume. The partnership provides that Chichay and Joacquin share profits and losses in the ratio of 2:3, respectively. The agreement further provides that Chichay and Joacquin should initially have an equal interest in the partnership capital. What is Joacquin’s net investment in the partnership? What is Chichay’s capital balance upon formation of the partnership? What amount of capital is to be transferred to Chichay to conform with their agreement?
The Nikifa, Fatihah & Wakeel partnership was formed on 1 April 2021 with cash investments by the partners as follows: Nikifa, RM206,000; Fatihah, RM255,000 and Wakeel, RM220,000. Besides the cash, Nikifa and Fatihah also brought into the business RM33,000 worth of furniture and RM17,000 worth of motor vehicle respectively. The partnership's income for the year amounting to RM192,500. Additional information: Nikifa, Fatihah & Wakeel agree on annual salaries of RM7,100, RM8,400 and RM6,300 respectively. The profit-sharing ratio of the partnership are to be determined based on capital balance at the beginning of the year. 1. 2. REQUIRED: (a) Prepare journal entries for initial investments by Nikifa, Fatihah & Wakeel. (b) Calculate and determine the partnership profits that should be received by each partner.
The partnership of Chichay and Joacquin was formed on February 28, 2021. On this date, Chichay invested P100,000 cash and an office equipment valued at P175,000. Joacquin invested P80,000 cash; merchandise valued at P120,000 and Building valued at P340,000 subject to a mortgage of P40,000 which the partnership will assume. The partnership provides that Chichay and Joacquin share profits and losses in the ratio of 2:3, respectively. The agreement further provides that Chichay and Joacquin should initially have an equal interest in the partnership capital. What is Joacquin’s net investment in the partnership? What is Chichay’s capital balance upon formation of the partnership?
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