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- Dane, Wayne and Ken are partners with capital accounts of P350,000, P700,000 and P450,000 respectively. They share profits and losses in a 2:3:5 ratio. Ken, anxious to retire, decided t accept a cash settlement of P400,000. How much is the capital balance of Dane after Ken’s retirement? Answer without peso signs but with commasMohammed Ahmed and Amir are partners sharing profits in the ratio of 9: 6: 3. Ahmed retires and Goodwill of the firm is valued on that date OMR 30,000. Calculate the Gaining ratio of Mohammed and Amir? a. None of the options are correct b. 1: 1 C. 3: 1 d. 2: 1Asha, Deepa and Lata are partners in a firm sharing profits in the ratio of 3 : 2 : 1. Deepa retires. After making all adjustments relating to revaluation, goodwill and accumulated profit etc., the capital accounts of Asha and Lata showed a credit balance of Rs. 1,60,000 and Rs. 80,000 respectively. It was decided to adjust the capitals of Asha and Lata in their new profit sharing ratio. You are requiredto calculate the new capitals of the partners and record necessary journal entries for bringing in or withdrawal of the necessary amounts involved.
- Show the solution in good accounting form John and Paul are partners who share profits and losses in the ratio of 3:2 respectively. John's salary is P180,000 and Paul's is P140,000. The partners are paid interest on their average capital balances where John received interest of P 30,000 and Paul, P 15,000. The profit and loss allocation is determined after deduction for the salary and interest payments. If John received P280,000 from partnership income, what was the total partnership income? *Banas and Belda are partners who share profits equally and losses in a 2:1 ratio. If they have beginning capital balances of P120,000 and P118,000, made no additional investments nor withdrawals, and suffered an unprofitable year with loss of P48,000, the capital balance of Banas will be:ILLUSTRATION 37 (Adjustment of capitals) Carter, Jones and Jennifer are partner sharing profits and losses in the ratio 3: 3:1. On Carter's retirement, capital of Jones and Jennifer were $ 8,000 and $ 82,000 respectively. They decided that their Capitals should be in the new profit sharing ratio. Calculate the adjustment of capital if new profit sharing ratio is 1:1. Adjustments to be made through cash. Any excess or deficit to paid off or brought in by the partners.
- PROBLEM: John and Paul are partners who share profits and losses in the ratio of 3:2respectively. John’s salary is P180,000 and Paul’s is P140,000. The partners are paid interest on their average capital balances where John received interest of P30,000 and Paul, P 15,000. The profit and loss allocation is determined after deduction for the salary and interest payments. QUESTION: If John received P280,000 from partnership income, what was the total partnership income? (Good Accounting Form)2. Tina, Lou and Lena are partners sharing profits and losses in the ratio of 2:2:1 and have capital balances of P400,000, P400,000 and P200,000, respectively. The following independent situations are given to you: (see attached image for the given. please answer it based on your knowledge. thank you so much) Direction: a. How much did Rod pay Lena in situation a? Record the admission of Rod. b. How much is the gain or loss of the partners in situation b? Record Rod's admission c. How much should the asset revaluation be in situation c? Make two entries and prepare a revised partners equity.Abe, Ben, and Cain are partners in the ratio of 3:4:2. Abe, Ben and Cain has a capital balance prior to the retirement of P50,000, 60,000 and 70,000. Ben is retiring from the firm. The profit on revaluation of asset on that date of retirement was P36,000. The new ratio of A and C is 5:3 after the retirement. Profit on revaluation will be distributed as P16,000, B P12,000, C P8,000 P12,000, B P16,000, C P8,000 P22,500, C P13,500 P23,625, C P12,375 Abe, Ben, and Cain are partners in the ratio of 3:4:2. Abe, Ben and Cain has a capital balance prior to the retirement of P50,000, 60,000 and 70,000. Ben is retiring from the firm. The profit on revaluation of asset on that date of retirement was P36,000. The new ratio of A and C is 5:3 after the retirement. If Ben is to receive an amount equal to the book value of his capital balance, the amount he should get is 50,000 72,000 70,000 Abe, Ben, and Cain are partners in the ratio of 3:4:2. Abe, Ben and Cain has a capital balance prior to…
- Juan, Pedro, and Pablo agreed on profit-sharing of 2:5:3. By the end of 2022, their respective capital balances after income distribution and profit sharing are as follows: Juan – P 90,000; Pedro – P 85,000; Pablo – P 120,000. The partners agreed to maintain their capital balance, but adjust their equity based on their profit-sharing ratio. How much cash will be distributed to/(Invested by) Pedro?Chaman, Raman and Suman are partners sharing profits in the ratio of 5:3:2.Raman retires, the new profit sharing ratio between Chaman and Suman willbe 1:1. The goodwill of the firm is valued at Rs. 1,00,000 Raman’s share of goodwill will be adjusted: (a) by debiting Chaman’s Capital account and Suman’s Capital Accountwith Rs 15,000 each.(b) by debiting Chaman’s Capital account and Suman’s Capital Accountwith Rs. 21,429 and 8,571 respectively.(c) by debiting only Suman’s Capital Account with Rs. 30,000.(d) by debiting Raman’s Capital account with Rs. 30,000The capital balances of the partners are presented to you before the retirement of Y: X, P40,000; Y, P35,000; Z, P25,000. P/L ratio, equally. After the retirement of Y, the capital balance of X was P42,000. How much was the cash settlement to Y? A. P31,000 B. P33,000 C. P37,000 D. P39,000