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- urses / BAAC1102 / BAAC1102 / Mid - Term Exam - Principles of Accc Ahmed and Mohammed agreed to start a business together and also agreed to share the profits and losses. The type of business is a. Sole Proprietorship O b. Cooperative Society C. Partnership O d. CorporationProblem IAriel, Beauty and Cindy decided to form Disprin Partnership with 2:2:1 profit sharing. Both Ariel and Beauty have existing business. The balance sheet of the two are shown below together with their agreement prior to formation. Ariel BeautyCash 113 126Accounts Receivables 200 100Inventories 50 50Equipment 80 0Furniture 0 30Prepayments 5 15TOTAL 448 321 Accounts Payable 75 95Capital 373…J.K. SHAH CLAS SES CA FOUNDATION- ACCOUNTANCY Required: Prepare necessary journal entries. Q.4 Calculate gain ratio in following cases Case -1 A. B and C are partners sharing profits and losses in the ratio of 1/2, 3/10 and 1/5 respectively. B retires from the firm and A&C decide to share future profits and losses in the ratio of 3:2. Case-2 W, A, B and C are partners sharing profits and losses in the ratio of 1/3, 1/6, 1/3 and 1/6 respectively. B retires and W, A and C decide to share future profits and losses equally. Case-3 B and C are partners sharing profits and losses in the ratio of 25:15:9. B retires and it is decided that profit sharing ratio between A&C will be the same as existing between B and C. Case-4 A, B and Care partners sharing profits and losses in the ratio of 4/9, 1/3 and 2/9. B retires and surrenders 1/9th of his share in favour of A and remaining in favour of C. Q.5 A partner's loan stands at ? 30,000 being amount payable to partner on retirement and that it has…
- Chris Gray, Bryson Alef, and Nick Pirollo are founding partners of their company, Scholly. Assume that Chris, Bryson, and Nick decide to expand their business with the help of general partners. Required 1. What details should Chris, Bryson, Nick, and their future partners specify in the general partnership agreements? 2. What advantages should Chris, Bryson, Nick, and their future partners be aware of with respect to organizing as a general partnership? 3. What disadvantages should Chris, Bryson, Nick, and their future partners be aware of with respect to organizing as a general partnership?PROBLEM 1On June 30, 20x8 A, the sole proprietor of A Inc, expandsthe company and establishes a partnership with B and C. Thepartners plan to share profits and losses as follows: A, 50%;B, 25% and C 25%. They also agree that the beginning capitalbalances of partnership will reflect this same relationship.A asked B to join the partnership because his many businesscontacts are expected to be valuable during the expansion. B iscontributing P40,000 and a building that has an original cost ofP520,000, book value of P420,000, tax assessment of P310,000 andfair value of P370,000. The building is subject to a P242,000mortgage that the partnership will assume. C is contributingP66,000 and marketable securities costing P252,000 but arecurrently worth P345,000.A's investment in the partnership is his business. He plansto pay off the notes with his personal assets. The other partnershave agreed that the partnership will assume the accounts payable.The balance sheet for the A Inc follows:…Problem I Ariel, Beauty and Cindy decided to form Disprin Partnership with 2:2:1 profit sharing. Both Ariel and Beauty have existing business. The balance sheet of the two are shown below together with their agreement prior to formation. Ariel Beauty Cash 117 126 Account receivables 100 200 Inventories 50 30 Equipment 80 0 Furniture 0 30 Prepayments 5 15 Total 352 401 Accounts payable 75 95 Capital 277 306 Total 352 401 Partners' agreements: Receivables are 97% collectible Ariel's inventories fair values is at P55 while P10 of Beauty's Inventories were damaged and are only 30%…
- Q8 ABC Bakers is a partnership concern owned and operated by Mr. X and Mr. Y. Identify the option that reflect the correct treatment of accounting transaction in the books of ABC Bakers? Select one: a. Mr. X borrowed Mr. Y money from a partnership’s bank account to buy a car for personal use: Debit vehicle; Credit Bank b. Mr. Y purchased an oven for the bakery using his personal credit card: Debit Oven (Asset); Credit Equity Capital c. Mr. X paid his house rent from the business bank account. Debit Rent expense; Credit Bank B d. Mr. Y paid out of buProblem I Ariel, Beauty and Cindy decided to form Disprin Partnership with 2:2:1 profit sharing. Both Ariel and Beauty have existing business. The balance sheet of the two are shown below together with their agreement prior to formation. Ariel Beauty Cash 117 126 Account receivables 100 200 Inventories 50 30 Equipment 80 0 Furniture 0 30 Prepayments 5 15 Total 352 401 Accounts payable 75 95 Capital 277 306 Total 352 401 Partners' agreements: Receivables are 97% collectible Ariel's inventories fair values is at P55 while P10 of Beauty's Inventories…Partnership Operation and Distribution of profit/loss 1. Jay, a businessman, invited two friends to join him in a business venture. He is willing toinvest his business and asked his two friends what their contributions will be. Michael, a balikbayan,would like to invest cash, but doubts he could actively participate in its management since he is inthe Philippines only for a vacation. Nevertheless, he is eager to join the partnership with thecondition that since he cannot actively participate he should be liable only to the extent of what heinvested. Angelo must join the business since his expertise is needed for the type of venture Jay iscontemplating to put up but does not want to make any capital contribution. QUESTION : Jay gives you four alternative methods of dividing profits. Which do you think would be bestfor the partners? Why?a. Based on their contributions ratiob. Salaries to Angelo and Jay with the remainder, if any, based on their contributions ratioc. Salaries to Angelo…
- QUESTION 2 (a) Jaymee decided to operate a small shop selling local delicacies. His brother Jamesis interested to partner with him. Advise them on the advantages anddisadvantages ofi) sole proprietorshipii) partnershipThen justify whether Jaymee should start as a sole proprietor or partner withJames. Answer should be written with proper examples and elaborations Thank you.Partnership Operation and Distribution of profit/loss 1. Jay, a businessman, invited two friends to join him in a business venture. He is willing toinvest his business and asked his two friends what their contributions will be. Michael, a balikbayan,would like to invest cash, but doubts he could actively participate in its management since he is inthe Philippines only for a vacation. Nevertheless, he is eager to join the partnership with thecondition that since he cannot actively participate he should be liable only to the extent of what heinvested. Angelo must join the business since his expertise is needed for the type of venture Jay iscontemplating to put up but does not want to make any capital contribution. QUESTION : Is it possible for the three friends to put up the business? Identify the roles they will play.Save & ExIt Sübmit Complete the following table with either a yes or no regarding the attributes of a proprietorship, partnership, corporation, and limited liability company (LLC). Attribute Present Proprietorship Partnership Corporation LLC 1. Limited liability 2. Business entity 3. Legal entity ( Prev 2 of 6 Next > T國A回 179 COFEB 5,200 6 étv
