2. After weeks of negotiating. Celine and Andrea formed a partnership by cantributing the net assets of their separate businesses. Immediately before the partnership is formed, Celine's business has an equity of P245,800, while Andrea showed a capital balance of P307,250 in her separate business. Accordingly, the assets of Celine is twice as much as the liabilities of Andrea, while Andrea's liabilities is 1/3 of her total assets. It was agreed that before any contributions are made, the total assets of Celine should be increased by 10%. while the total liabilities of Andrea should be decreased by 20%. If Andrea's contribution to the partnership is equal to her capital credit, what is the amount of extra/(excess) assets should Celine Invest/(withdraw) from the partnership so that their interests in the partnership are equal? A. P(122,900) B. P122,900 C. P(61,450) D. P61,450
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- Charles and Clement are partners with capital balances of P 24,500 and P 15.500, respectively. The profit and loss agreement is 60% for Charles and 40% for Clement. The partners decided to liquidate the partnership. The firm's liabilities amount to P 36,000, including P 4.000 owing to Charles and P 3,500 owing to Clement on loans. After realization of assets, the cash on hand amounts to P 37,500. How much is the total loss on realization? in the settlement to partners, how much did Charles receive? in the settlement to partners. how much did Clement receive?Aris, Blair, and Cassie are partners who split profits in a 3:3:4 ratio. They have recently been overwhelmed by the volume of work and have agreed to admit Shane to the partnership in exchange for a monetary investment. Their capital accounts have current balances of USD60,000, USD80,000, and USD120,000, respectively. Assuming Shane is given a 20% interest in the partnership in exchange for a Php60,000 monetary investment, what are Cassie and Shane's capital balances after Shane's admission?1. On May 1, 2008, Jose and Pedro formed a partnership and agreed to share profits and losses in the ratio of 3:7, respectively. Jose contributed a computer that cost him P50,000.Pedro contributed P200,000 cash. The computer was sold for P55,000 on May 1, 2008 immediately after the formation of the partnership. What amount should be recorded in Jose's capital account on formation of the partnership?
- Ana, Bea and Carol decided to form a partnership contributing the following items. Ana is to invest her existing business in the partnership consisting of the following accounts; cash of P20,000; accounts receivable of P50,000; inventory P30,000; fixtures of P40,000; payables of P12,000. Bea on the other hand is to invest cash of P15,000 and a delivery truck costing P30,000 but is mortgaged with the bank for P20,000. The partners agree that the receivables will re have a 90% realizable value. The inventory would be valued at P20,000. P5,000 of the payables would be paid prior to the formation of the partnership. The delivery truck would have a 20% increase in its market value. The partnership will shoulder only 80% of the mortgage and Carol is to invest cash to be able to have a 40% interest in the partnership.How much cash should Carol invest in the newly formed partnership?A. 61,200 B. 138,000 C. 60,800 D. 102,000Required: 3. Prepare journal entry to record Pedro’s admission. 4. During the first year of operations, the partnership earned P650,000. After Pedro’s admission, the profitand loss sharing ratio is 40:40:20 for Juan, Pablo, and Pedro, respectively, based on capital credits.Drawings were made in these amounts: Juan, P100,000; Pablo, P130,000; Pedro – P56,000. What isthe capital balance of Pedro after the first year?Charlie and Delta formed a partnership. Charlie invested cash worth P85,000 and a machine. On the other hand, Delta contributed cash worth P55,000 and an equipment which has a mortgage of P35.000 which Delta will pay personally The total capital after formation was P350,000. They also further agreed to reflect 55:45 ratio as to their capital balances respectively. No other investment or withdrawal occurred other than mentioned to reflect their capital ratio agreement. How much is the fair value of the machine?
- Partners AIL and Charish capital is 480,000 and 520,000, respectively. They share profit or loss equally in their merchandising business. After admitting BLAIRE, they agreed to have a total capital of P2,500,000. The new partner invested P500,000 for 30% interest in the business. Questions: 6. What is the capital of AIL and Charish after admitting BLAIRE? 7. What is the capital of BLAIRE after admission? 8. How much is the amount of Bonus to or (from) Charish? 9. How much is the amount of revaluation credited to AIL?Pozon, Ventic and Biore are partners. Pozon is an industrial partner. During the first year of operation, the firm realized a profit of P30,000. During the second year, the firm sustained a loss of P60,000. In the Articles of Partnership, it was agreed that Pozon, the industrial partner would get one-third of the profit but would not share in the losses. How much will Pozon, the industrial partner get? a.Pozon will get only P10,000 which is one-third of the profit. b.Pozon will get only P20,000 in the first year and none in the second year. c.Pozon will share in the loss in the second year. d.Pozon will get only P20,000 which is 1/3 of the profit of first year of operationsJason River, Sara Down, and Cam Preti each have a $240,000 capital balance. They share profits and losses as follows: 2.2.6 to River, Down, and Preti, respectively. Suppose Preti is withdrawing from the business Requirements 1. Journalize the withdrawal of Pres if the partnership agrees to pay Pres $240,000 cash 2. Journalize the withdrawal of Preti if the partnership agrees to pay Preti $210,000 cash. Requirement 1. Journalize the withdrawal of Preti if the partnership agrees to pay Pret $240,000 cash (Record debits first, then credits Select the explanation on the last line of the journal entry table) Date Accounts and Explanation Debit Credit
- GNAR, GWEN and JINX are lawyers who agreed to form a partnership and to share profits in the ratio of 5:3:2. They also agreed that JINX is to bellowed a salary of P14,000, and GWEN is to be guaranteed of P10,500 as his share of the profits. During the first year of operation, income from fees are P90,000, while expenses total P48,000. What amount of net income should be credited to GWEN's capital account?Jared, Samantha, and Cole each have a $430,000 capital balance. They share profits and losses as follows: 2.6.2 to Jared, Samantha, and Cole, respectively. Suppose Cole is withdrawing from the business. Requirements 1. Journalize the withdrawal of Cole if the partnership agrees to pay Cole $430,000 cash. 2. Journalize the withdrawal of Cole if the partnership agrees to pay Cole $220,000 cash. Requirement 1. Journalize the withdrawal of Cole if the partnership agrees to pay Cole $430,000 cash. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit CreditAllan and Bobby formed a partnership called the AB Partnership by investing cash of P300,000 and P400,000 respectively. They share profit and loss ratio 2:3. Carlo of Singapore was admitted to the firm with an investment of P500,000 representing a 30% interest. Allan decided to withdraw on June 3, 2022 for a cash settlement of P650,000. The partners decided that assets need not be revalued. How much was total partners' equity after the retirement of Allan?