1. On May 1, 2018, the business assets and liabilities of Nathan and Janice were as follows: Nathan Janice Cash 8,000 P 62,000 Receivables 200,000 600,000 Inventories 120,000 Land, Building and Equipment 535,000 200,000 650,000 Other Assets 2,000 3,000 Accou nts payable (180,000) (250,000) Nathan and Janice agreed to form a partnership by contributing their net assets, subject to the following adjustments: • Receivables of P 20,000 in Nathan's books and P 40,000 in Janice's books are uncollectible. • Inventories of P 6,000 and P 7,000 in the respective books of Nathan and Janice are worthless • Other assets in both books are written off Upon the Partnership's formation: The respective capital of partners Nathan and Janice would be : The total assets of the partnership would be:

1. On May 1, 2018, the business assets and liabilities of Nathan and Janice were as follows: Nathan Janice Cash 8,000 P 62,000 Receivables 200,000 600,000 Inventories 120,000 Land, Building and Equipment 535,000 200,000 650,000 Other Assets 2,000 3,000 Accou nts payable (180,000) (250,000) Nathan and Janice agreed to form a partnership by contributing their net assets, subject to the following adjustments: • Receivables of P 20,000 in Nathan's books and P 40,000 in Janice's books are uncollectible. • Inventories of P 6,000 and P 7,000 in the respective books of Nathan and Janice are worthless • Other assets in both books are written off Upon the Partnership's formation: The respective capital of partners Nathan and Janice would be : The total assets of the partnership would be:

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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Ahmed and Wahid are partners sharing profits and losses in the ratio of 3:1. Their Balance sheet as on March 31, 2021 is as follows. Liabilities Amount (RO) Assets Amount (RO) Creditors 315000 Cash 26250 Bills Payable 105000 Debtors 367500 General Reserve 210000 Stock 157500 Сapital: Plant 131250 Ahmed 420000 Buildings 525000 Wahid 210000 Profit & Loss Ac 52500 Bank Overdraft 315000 | Equipment 315000 Total 1575000 Total 1575000 On April 01, 2021, they agreed to admit Khalid into the firm for 1/5th Share of future profits on the following terms: a) Building is revalued at 630000 b) Stock is revalued at 112875 c) Goodwill is raised at 210000 d) Provision for bad debts is to be made at 5% e) Khalid has to bring in a Capital 262500 f) Khalid was unable to bring the amount of goodwill Pass Journal Entries and Prepare Revaluation Account, Capital Accounts and the Balance Sheet of the reconstituted firm.
Ahmed and Wahid are partners sharing profits and losses in the ratio of 3:1. Their Balance sheet as on March 31, 2021 is as follows. Liabilities Amount (RO) Assets Amount (RO) Creditors 315000 Cash 26250 Bills Payable 105000 Debtors 367500 General Reserve 210000 Stock 157500 Capital 0Plant 131250 Ahmed 420000 Buildings 525000 Wahid 210000 Profit & Loss Ac. Bank Overdraft 315000 Equipment 315000 Total 1575000 Total 1575000 On April 01, 2021, they agreed to admit Khalid into the firm for 1/5th Share of future profits on the following terms: 2) Building s revalued at 630000 b) Stock is revalued at 112875 l Goodwill i raised at 210000 di Provuion for bad debts sto be made at 5% e) Khalid has to bring in a Lapital 262500 n Khalid war onable to brina the amount of goodwill: Pass Journal Lntries and Prepare Revaluation Account, Capiital Accounts and the Dalance Sheet of the reconstituted firm.
Pepe, Pilar and Paz Partnership showed the following financial position on June 30, 2020, the date of liquidation: Assets Cash P20,000.00 Receivable from Paz 30,000.00 Other noncash assets 650,000.00 P700,000.00 Liabilities and Equity Accounts Payable P150,000.00 Notes Payable 260,000.00 Loans Payable to Pilar 65,000.00 35,000.00 Рере, Саpital Pilar, Capital Paz, Capital 70,000.00 120,000.00 P700,000 00 0.00 The partners share profits and losses equally. The other assets were sold for P530 000 00. Liquidation Expense of P60,000 were paid. The partners' personal record shows the following ing Personal TS, 30 Assets Personal Liabilities Pepe (general Partner) P100 000 00 P50 000 00 22) 200 .000 00
Sofia contributed the following business assets to S&S Partnership on March 3, 2022: FMV $ 45,000 $-0- $ 100,000 What is the basis in the equipment and the accounts receivable to S&S? Equipment Accounts receivable Multiple Choice Basis $ 75,000 Equipment $45,000; Accounts Receivable $100,000 Equipment $0; Accounts Receivable $0 Equipment $45,000; Accounts Receivable $0 Equipment $75,000; Accounts Receivable $0 Date purchased by Sofia 07/01/21 Various
Items 18 to 20 are based on the following data. The partnership business of John Estrada and Peter Arroyo was formed on January 2, 2020. At that date, the following assets were invested as derived from their respective sole proprietor's books. Book of Estrada Book of Arroyo 160,000 Cash. .P145,000 Accounts receivable. 80,000 50,000 Allowance for doubtful accounts. (5,000) (3,000) Merchandise inventory. 200,000 190,000 Partner's agreement as follows: 1. Estrada and Arroyo's adjusted capital contributions must be equal. In the event that one's contribution will exceed the other, any one of them shall withdraw "Cash" from their respective investment. 2. Their respective Accounts receivable should have a probability of collections. 80% for Estrada and 90% for Arroyo. 3. Merchandise inventory will be caried in the partnership book "as is". 4. Prepaid expense of P20,000 should be recognized for Estrada and P5,000 Accrued expenses for Arroyo. 18. How much is the adjusted capital contribution…
Ahmed and Wahid are partners sharing profits and losses in the ratio of 3:1. Their Balance sheet as on March 31, 2021 is as follows. Liabilities Amount (RO) Assets Amount (RO) Creditors 210000 Cash 17500 Bills Payable 70000 Debtors 245000 General Reserve 140000 Stock 105000 0 Plant 280000 Buildings Capital: 87500 Ahmed 350000 Wahid 140000 Profit & Loss Ac 35000 Bank Overdraft 210000 Equipment 210000 Total 1050000 Total 1050000 On April 01, 2021, they agreed to admit Khalid into the firm for 1/5th Share of future profits on the following terms: a) Building is revalued at 420000 b) Stock is revalued at 75250 c) Goodwill is raised at 140000 d) Provision for bad debts is to be made at 5% e) Khalid has to bring in a Capital 175000 f) Khalid was unable to bring the amount of goodwill Pass Journal Entries and Prepare Revaluation Account, Capital Accounts and the Balance Sheet of the reconstituted firm.
Baxter and Mandy have been operating a partnership for a few years. The partnership has provided the trial balance below as at Dec 31, 2023. BAXDY CONSULTANTS TRIAL BALANCE AS AT DEC 31, 2023 Cash Supplies Equipment Accumulated depreciation - Equipment Accounts Payable Wages Payable Short-Term Note Payable Long-Term Note Payable Capital - Baxter Capital - Mandy Withdrawals, Baxter Withdrawals, Mandy Consulting Revenue Selling, General, & Administrative Expenses TOTAL 462,000 11,000 640,000 82,000 48,000 24,000 88,000 450,000 157,000 172,000 68,000 97,000 675,000 418,000 1,696,000 1,696,000 Additional Information: 1. The short-term notes payable is a 90-day 6% note that was issued on November 1, 2023. The accrued interest has not yet been recorded. 2. The long-term note payable is a non-interest-bearing note that was issued on January 1, 2023 for $600,000. An installment of $150,000 is due every Dec 15. The installment that was due Dec 15, 2023 was paid and properly recorded. 3. The…
Lalitha, Jothi and Kanaga were partners of a firm sharing profit and losses in the ratio of 3:2:3. Set out below was their balance sheet as onMarch 31, 2021. Liabilities & Equity Bills Payable Sundry Creditors Outstanding Expenses Capital: RO Assets RO 80000 Cash in Hand 156250 Cash at Bank 1250 Debtors O Stock 1875 511250 222500 278750 Lalitha 500000 Furniture 43750 Jothi 312500 Plant and Machinery 121875 Kanaga 375000 Building 300000 Profits & Loss A/c 55000 1480000 1480000 Lalitha retired from the partnership on April 01, 2021 under the following terms: The assets are to be valued as under: Stock 250000 Furniture 37500 Plant & Machinery Building 112500 250000 A provision for doubtful debt to be created at 10625 Goodwill of the firm was to be valued at 75000 The gaining ratio is 2:3. Lalitha was to be paid off immediately. Record the necessary journal entries, prepare Revaluation Account, Capital Accounts and Balance Sheet of the reconstituted partnership.
Maria Reid has determined that the value of her assets is $64,000 and the value of her debts is $23,000. The difference between these two is $41,000. The $41,000 could be referred to as her: Group of answer choices nest egg. total assets. adjusted assets. debt equity. net worth.
Tim and Ray are partners in Double Good Trading. They share the profits and losses equally. The balances extracted from their books as at 31 December 2020 are shown below: $ $ Capital Accounts: Tim 60000 Ray 60000 Current Accounts: Tim 3000 Ray 5000 Drawings: Tim 10000 Ray 10000 Closing inventory 26000 Motor vehicles 80500 Cash 3250 Bank 7460 Trade Debtors 25860 Trade Creditors 28220 Profit & Loss Account for 2020 16850 168070 168070 Additional information: i. After the Profit and Loss Account was prepared, Tim realised that there was an accrued utilities charge amounting to $1,200 that was not recorded. ii. The interest on capital is at 6% per annum. iii. The interest on drawings is at 8% per annum. iv. Tim is to be paid a salary of $24,000 per annum Required: Prepare the Profit and Loss Appropriation Account for the year ended 31 December 2020, and the…
On January 1, 2017, Len, May and Nancy decided to form a business partnership to operate supermarket. Lenand May both owned a grocery business with the Statements of Financial Position as of December 31, 2016: LEN MAYCash P10M P20MAccounts Receivable 20M 30MInventories 70M 40MProperty, Plant and Equipment 50M 10MAccounts Payable 40M 20MNotes Payable 30M (10%) 50M (5%)Capital 80M 30M LYCEUM OF SUBIC BAYSubic Bay Freeport Zone Advanced Financial Accounting Review Allan B. Santos CPA 3 | P a g eThe following additional notes are provided: a. Len and May will contribute all its assets and liabilities to the newly formed partnership.b. The parties agree to provide 10% and 20% allowance for bad debts to the accounts receivable ofLen and May, respectively.c. The inventories of LEN and MAY are reported at historical cost and have net realizable value ofP60M and P45M, respectively.d. The PPE of LEN and MAY have not been depreciated and should be depreciated by 40% and 30%,respectively.e. The…
On March 1, 2020, EE and FF decided to combine their business and form a partnership. Their balance sheets onMarch 1 before adjustments showed the following: 1. Compute the net (debit)/credit adjustment for EE anf FF. EE FF EE FFA. 28,700 ; 28,200 C. (8,700) ; 1,800B. (28,700) ; (28,200) D. 8,700 ; (1,800) 2. Compute the total assets after the formation.A. 1,607,650 C. 1,579,850B. 1,570,850 D. 1,568,750 3. If the partners are to share profits and losses in the ratio of 6:4 and their capital is top reflect this relationship, what is the capital of FF after the formation?A. 400,000 C. 369,740B. 391,700 D. 391,700 4. If If the partners are to share profits and losses in the ratio of 6:4 and their capital is top reflect this relationship with EE’s capital to be used as a basis, what is the capital of FF after the formation?A. 400,000 C. 369,740B. 391,700 D. 391,700