Item Nos. 3 to 5 are based on the following information:After the realization of noncash assets, the following account balancesappeared in the general ledger of the partnership of See, Chap, and Pwe:P 10,000Cash30,000Liabilities5,000Pwe Loan-15,000See Capital-10,000Chap Capital-10,000Pwe Capital-Profits are shared 2:4:4 for See, Chap, and Pwe, respectively. Pwe isinsolvent.3. How much was the loss on realization?C. P 70,000.a. P 50,000.d. P 80,000.b. P 60,000.4. How much did See receive in the liquidation?C.P 5,000.a. PO.d. P 15,000.b. P 3,000.5. How much additional investment did Chap make?a. P 10,000.C. P 15,000.b. P 14,000.d. P 20,000.

Given in the question: Partnership is dissolved or liquidated and the balance of the accounts after…

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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 following s the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation A/c, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. Land and Buildings 637500 X Capital A/c 191250 Y Capital A/c 85000 Sundry creditors 170000 Sales (net) 85000 Discount 76500 Provision for bad debts 212500 Commission 6375 Y's Loan A/c 212500 Plant and Machinery 127500 Wages Opening Stock of Finished Goods Opening Stock of Raw material Opening Stock of Work in Progress Sundry debtors Carriage inwards Carriage outwards Factory Expenses Royalties 106250 1381250 10625 6375 42500 127500 3825 31875 6375 Purchase of Raw material (net) 318750 Factory rent & taxes Discount 27625 0. 12325 17000 8500 0. Office rent Insurance Bad debts Office Expenses Salaries of works manager 6375 31875 S1000 Cash at bank 34850 2014500 The following additional information is to be taken into…
The following is the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation A/c, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. 637500 X Capital A/c 191250 Y Capital A/c 85000 Sundry creditors 170000 Sales (net) 85000 Discount Land and Buildings 212500 Plant and Machinery 127500 Wages 106250 Opening Stock of Finished Goods 1381250 Opening Stock of Raw material 10625 Opening Stock of Work in Progress 76500 Provision for bad debts 6375 Sundry debtors 212500 Commission 42500 Carriage inwards 6375 Y's Loan A/c 127500 Carriage outwards 3825 Factory Expenses 31875 Royalties 6375 Purchase of Raw material (net) 318750 Factory rent & taxes 27625 Discount 12325 Office rent 17000 Insurance 8500 Bad debts 6375 Office Expenses 31875 Salaries of works manager 51000 Cash at bank 34850 2014500 2014500 The following additional information is to be taken into…
The following is the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation A/c, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. Land and Buildings 187500 x Capital A/c 56250 Y Capital A/c 25000 Sundry creditors 50000 Sales (net) 25000 Discount 22500 Provision for bad debts 62500 37500 Plant and Machinery Wages 31250 Opening Stock of Finished Goods 406250 3125 Opening Stock of Raw material Opening Stock of Work in Progress 1875 Sundry debtors 62500 Commission 12500 Carriage inwards 1875 Y's Loan A/c 37500 Carriage outwards 1125 Factory Expenses 9375 Royalties 1875 Purchase of Raw material (net) 93750 Factory rent & taxes 8125 Discount 3625 Office rent 5000 Insurance 2500 Bad debts 1875 Office Expenses 9375 Salaries of works manager 15000 Cash at bank 10250 592500 The following additional information is to be taken into consideration: 592500…
The statement of financial position of the partnership of A and B as of December 31, 20x1 is shown below: Cash 33,354 Accounts receivable 802,426 Inventory Land 380,137 603,000 Building Equipment 428,267 85,134 Other assets 5,600 Total assets 2,337,918 Accounts payable Notes payable 422,590 545,000 641,976 A, capital B, capital Total liabilities and equity 728,352 2,337,918 • A and B share in profits and losses equally. • On January 1, 20x2, C informed A and B of his intention to invest in the partnership for a 20% interest. The partners agreed on the following adjustments prior to C's admission: o Accounts receivable of P55,000 should be written-off. o Inventories of P12,200 are obsolete and have no resale value. o The 'Other assets' should be written off. If no bonus is allowed, how much is C's required investment? 234,167 236,347 324,382 341,367
The following items are being invested by A and B to form AB Partnership Agreed Cash Inventory Land Building Equipment Total Mortgage on building assumed by the partnership Investment by A 120,000.00 120,000.00 240,000.00 480,000.00 480.000.00 Values Investment by B 120,000.00 240,000.00 480,000.00 840,000.00 240,000.00 600.000.00 REQUIRED: A. Prepare entries to record the formation of partnership assuming that A and B agree that each partner is to receive a capital credit equal to the agreed values of the net assets each partner invested. B. Prepare entities to record the formation of the partnership assuming that A and B agreed that each partner is to receive an equal capital investment.
Item Nos. 17 and 18 are based on the following information: The balance sheet for the partnership of Lia, Mia, and Pia, who share profits in the ratio of 2:1:1, respectively, shows the following balances just before liquidation: Cash P 12,000 Liabilities P 20,000 Noncash Assets- 59,500 Lia Capital --- 22,000 Mia Capital 15,500 Pia Capital--- 14,000 P 71,500 P 71,500 On the first month of liquidation, certain assets were sold for P 32,000. Liquidation expenses of P 1,000 were paid and additional liquidation expenses in the future are still anticipated. Liabilities were paid amounting to P 5,400 and sufficient cash was retained to ensure the payment to creditors before making payments to the partners. On the first payment to partners, Lia received P 6,250. 17. The total cash distributed to the partners in the first installment was: a. P 12,500. C. P 25,000. b. P 20,000. d. P 37,600. 18. The amount of cash withheld for anticipated liquidation expenses and unpaid liabilities was: a. P…
The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the ratio of 4:3:3, respectively: Cash Other assets Hardwick, loan Total assets $ 93,000 815,000 44,000 Beginning balances Sold assets $952,000 Accounts payable Ferris, loan Hardwick, capital Saunders, capital Ferris, capital Adjusted balances Max loss on remaining noncash assets Paid liabilities Safe payments Total liabilities and capital The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $125,000. Prepare a proposed schedule of liquidation at this point in time. (Amounts to be deducted should be entered with a minus sign.) HARDWICK, SAUNDERS, AND FERRIS Proposed Schedule of Liquidation Cash Other Assets $ 48,000 54,000 380,000 240,000 230,000 $952,000 Accounts Payable Hardwick, Loan and Capital Saunders, Capital Ferris, Loan & Capital
GWS and BCP organized the GB Partnership on January 1, 2018. The following entries were made in their capital accounts during 2018. Debit Credit GWS, Capital: January 1 April 1 October 1 P315,000 P105,000 175,000 Debit Credit ВСР, Саpital: January 1 March P413,000 1 September 1 November 1 52,500 105,000 94,500 Required: А. If the partnership profit for the year 2018 computed before salaries or interest is P217,000, determine its distribution between the partners under each of the following independent profit-sharing agreements: (1) Interest at 6% is allowed on average capital investments and the remainder of the profit is divided equally. (2) A salary of P126,000 is to be credited to BCP, 6% interest is allowed on each partner on his ending capital balance and the remainder of the profit in the ratio of 3:2. Salaries are allowed GWS and BCP in amounts of P119,000 and P133,000, respectively, and the remaining profit or resulting loss is divided in the ratio of average capital balance.…
2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. Q2. How much did See receive in the liquidation? a. 0 b. 3,000 c. 5,000 d. 15,000
2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. Q3. How much additional investment did Chap make? a. 10,000 b. 14,000 c. 15,000 d. 20,000
The statement of financial position of the partnership of A and B as of December 31, 20x1 is shown below: Cash 33,354 Accounts receivable 802,426 Inventory 380,137 Land 603,000 Building 428,267 Equipment 85,134 Other assets 5,600 Total assets 2,337,918 Accounts payable Notes payable А, саpital В, сapital 422,590 545,000 641,976 728,352 Total liabilities and equity 2,337,918 A and B share in profits and losses equally. On January 1, 20x2, C informed A and B of his intention to invest in the partnership for a 20% interest. The partners agreed on the following adjustments prior to C's admission: o Accounts receivable of #55,000 should be written-off. o Inventories of P12,200 are obsolete and have no resale value. o The 'Other assets' should be written off. If no bonus is allowed, how much is C's required investment?
The following condensed balance sheet is for the partnership of Gulian, Singh, and Zahiri, who share profits and losses in the ratio of 4:3:3, respectively: Cash Other assets Gulian, loan Total assets $ 86,000 805,000 52,000 $ 943,000 Accounts payable Zahiri, loan Gulian, capital Singh, capital Zahiri, capital Total liabilities and capital Beginning balances Sold assets Adjusted balances Max loss on remaining noncash assets Paid liabilities Safe payments Required: The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $185,000. Prepare a proposed schedule of liquidation at this point in time. Note: Amounts to be deducted should be entered with a minus sign. GULIAN, SINGH, AND ZAHIRI Proposed Schedule of Liquidation Cash Other Assets Accounts Payable $ 132,000 51,000 310,000 230,000 220,000 $943,000 Gulian, Loan and Capital Singh, Capital Zahiri, Loan & Capital

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3. How much was the loss on realization? a. P 50,000. b. P 60,000. 4. How much did See receive in the liquidation? a. PO. C. b. P 3,000. d. 5. How much additional investment did Chap make? C. P 70,000. d. P 80,000. P 5,000. P 15,000.