B, A, R, and T are partners in BART Enterprise, whose business is trading of second hand cars. B contributed Php120,000.00, A,Php60,000.00, R, Php40,000.00 and T, Php20,000.00. B was designated as manager. No other partner was given an authority to act for the partnership. Which of the following transactions entered into in behalf of the BART Enterprise will not be binding on it? The sale by B of second hand cars. The purchase of a delivery truck by A but the seller was not aware that A had no authority to purchase it. The purchase by B of second hand cars. The sale of second hand cars by R but the buyer had no knowledge that R was not authorized to sell.
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B, A, R, and T are partners in BART Enterprise, whose business is trading of second hand cars. B contributed Php120,000.00, A,Php60,000.00, R, Php40,000.00 and T, Php20,000.00. B was designated as manager. No other partner was given an authority to act for the
- The sale by B of second hand cars.
- The purchase of a delivery truck by A but the seller was not aware that A had no authority to purchase it.
- The purchase by B of second hand cars.
- The sale of second hand cars by R but the buyer had no knowledge that R was not authorized to sell.
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- A, B and C formed a commercial partnership. D represented himself as a partner in the partnership to E who, on the belief of such representation, extended credit of P50,000 to the partnership. Assuming only B and C consented to such representation, who shall be liable to E? a. B, C and D are partners by estoppels and thus, are liable to E? b. Only partners A, B and C are liable to E for the benefit extended to them. c. Only D who made the representation is liable to E. d. All of A, B, C and D are liable because of partnership liability for the credit extended to the partnership by E.Barbara Ripley and Fred Nichols decide to organize the ALL-Star partnership. Ripley invests $18,000 cash, and Nichols contributes $10,000 cash and equipment having a book value of $3,600. Prepare the entry to record Nichols's investment in the partnership, assuming the equipment has a fair value of $4,800. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation v Debit CreditUsama, Shahid and Hassan are partners in a partnership firm. With an agreement among them, they decided that no partner will have the authority to buy or sell goods above Rs. 20,000 without other partners’ consent. Unaware of this provision (restriction), Ali sold goods worth Rs. 45,000 to Shahid who did not inform (or consult with) other partners. According to Partnership Act, explain whether the partnership firm and its partners are liable to Ali under the circumstances mentioned above.
- Barbara Ripley and Fred Nichols decide to organize the ALL-Star partnership. Ripley invests $24,000 cash, and Nichols contributes $10,000 cash and equipment having a book value of $5,120. Prepare the entry to record Nichols's investment in the partnership, assuming the equipment has a fair value of $6.400. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit CreditA is a managing partner of A and B partnership. X is indebted to A for P25,000 and the partnership for P75,000. When both debts mature, X pays A P10,000 and the latter issues a receipt for his personal credit. The payment for P10,000 shall be applied. a. To the whole debt owing to A. b. 1/4 in favor of A and 3/4 in favor of partnership. c. Debt owing to the partnership. d.1/2 in favour of A and 1/2 in favour of the partnershipThe following account balances were taken from the books of Aztra, a sole proprietor before admitting Nica to form a partnership. Accounts Receivable Php 50,000 1,000 60,000 20,000 30,000 59,000 Allowance for bad debts Equipment Accum. Depreciation – Equipment Notes Payable Aztra, Capital Aztra admits Nica as a partner in the partnership with a total agreed capitalization of Php 200,000. Nica contributes cash that will give her 50% claim in the partnership. Aztra is to invest additional cash after the partnership's assets and liabilities are to be adjusted per agreement as follows: a. The realizable amount of accounts receivable is Php 45,000. b. The equipment is to be stated at its depreciated value of Php 34,000. c. Accrued interest on notes payable should be recognized, Php 1,000. Required: 1. Adjusting entries 2. Journal entries to record the investment of Aztra and Nica in the partnership books.
- A, B, C and E are partners. They contributed to the capital as follows: A-P50,000; B-P100,000; C-P150,000; and E as the industrial partner, his services. The partnership obligation to outsiders exceeds the total net assets by P200,000. Who and by how much will the partners be liable for the payment of the P200,000? a. A-zero; B- zero; C-zero; E-zero b. A- P33,333; B-P66,666;C-P100,000;E-zero c. A-P45,000; B-P45,000; C-P55,000; E- P55,000 d. A-P50,000; B-P50,000; C-P50,500; E-P50,0001. Mr.W, Mr.X, Mrs.Y and Ms.Z organized a general partnership with W and X as industrial partners and Y and Z as capitalist partners. Y contributed P500,000.00 and Z contributed P200,000.00 to the common fund. By a unanimous vote of the partners, W and X were appointed managing partners, without any specification of their respective powers and duties. A applied for the position of Secretary and B applied for the position of Accountant of the partnership. The hiring of A was decided upon by W and X, but was opposed by Y and Z. The hiring of B was decided upon by W and Z, but was opposed by X and Y. Who of the applicants should be hired by the partnership? 2. Joey and Ruddie formed a partnership to operate a car repair shop in Dagupan City. Joey provided the capital while Ruddie contributed his labor and industry. On one side of their shop, Joey opened and operated a coffee shop, while on the other side, Ruddie put up a car accessories store. May they engage in such…2. A and B agreed to form a partnership. A shall contribute ₱80,000 cash while B shall contribute ₱200,000 cash. However due to the expertise that A will be bringing to the partnership, the partners agreed that they should initially have equal interests in the partnership capital. After recording the partners’ contributions, A’s capital account should have a balance of
- A, B and C formed a partnership for the purpose of contracting with the Philippine Government in the construction of one of its bridges. On June 30, 2020, after completion of the project, the bridge was turned over by the partners to the Government. On August 30, 2020, D, a supplier of materials used in the project sued A for collection of the indebtedness to him. A moved to dismiss the complaint against him on the ground that it was the ABC partnership that is liable for the debt. D replied that ABC partnership was dissolved upon completion of the project for which purpose the partnership was formed. Will you dismiss the complaint against A, if you were the judge? State your reason.Du-sik joins the partnership of Hye- Jin and Gam-ri by paying P30,000 in cash. If the net assets of the partnership are still the same amount after Du-sik has been admitted as a partner, then Du-sik* must have been admitted by investment of assets. must have been admitted by purchase of a partner's interest. must have received a bonus upon being admitted. could have been admitted by an investment O of assets or by a purchase of a partner's interest.Mr.W, Mr.X, Mrs.Y and Ms.Z organized a general partnership with W and X as industrial partners and Y and Z as capitalist partners. Y contributed P500,000.00 and Z contributed P200,000.00 to the common fund. By a unanimous vote of the partners, W and X were appointed managing partners, without any specification of their respective powers and duties. A applied for the position of Secretary and B applied for the position of Accountant of the partnership. The hiring of A was decided upon by W and X, but was opposed by Y and Z. The hiring of B was decided upon by W and Z, but was opposed by X and Y. Who of the applicants should be hired by the partnership?