34. Partners A, B, C and D formed a partnership on January 1, 2019 with original investments P100,000; P200,000; P300,000 and P400,000, respectively. On January 1, 2021, their capital balances are P150,000; P250,000; P250,000 and P350,000, respectively. On July 1, 2021, A added P200,000 investment, B added P100,000 investment and C added P100,000. The partnership profit for year ending 2021 is P1,000,000 accrued evenly during the year. On December 31, 2021, they have decided to terminate the partnership. X is buying the partnership for P2,000,000 after settlement to outside creditors P400,000. What is the amount to be received by D if the partnership accepted the offer of X? * P525,000 P372,222 P427,778

34. Partners A, B, C and D formed a partnership on January 1, 2019 with original investments P100,000; P200,000; P300,000 and P400,000, respectively. On January 1, 2021, their capital balances are P150,000; P250,000; P250,000 and P350,000, respectively. On July 1, 2021, A added P200,000 investment, B added P100,000 investment and C added P100,000. The partnership profit for year ending 2021 is P1,000,000 accrued evenly during the year. On December 31, 2021, they have decided to terminate the partnership. X is buying the partnership for P2,000,000 after settlement to outside creditors P400,000. What is the amount to be received by D if the partnership accepted the offer of X? * P525,000 P372,222 P427,778

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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On January 1, 2018, A, B and C formed ABC Partnership with original capital contribution of P300,000, P500,000 and P200,000. A is appointed as managing partner. During 2018, A, B and C made additional investments of P500,000, P200,000 and P300,000, respectively. At the end of 2018, A, B and C made drawings of P200,000, P100,000 and P400,000, respectively. At the end of 2018, the capital balance of C is reported at P320,000. The profit or loss agreement of the partners is as follows: • 10% interest on original capital contribution of the partners. • Quarterly salary of P40,000 and P10,000 for A and B, respectively. • Bonus to A equivalent to 20% of Net Income after interest and salary to all partners • Remainder is to be distributed equally among the partners. What is the bonus given to A as managing partner for the year ended December 31, 2018? P120,000 P150,000 P60,000 P100,000
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On January 1, 2030, A, B and C formed ABC Partnership with original capital contribution of P600,000, P1,100,000 and P400,000. A is appointed as managing partner. During 2030, A, B and C made additional investments of P1,000,000, P400,000 and P600,000, respectively. At the end of 2030, A, B and C made drawings of P400,000, P200,000 and P800,000, respectively. At the end of 2030, the capital balance of C is reported at P640,000.The profit or loss agreement of the partners is provided below:• 10% interest on original capital contribution of the partners.• Quarterly salary of P80,000 and P20,000 for A and B, respectively.• Bonus to A equivalent to 20% of Net Income after interest and salary to all partners• Remainder is to be distributed equally among the partners. 10. What is C’s share in the partnership profit for the year ended December 31, 2030?a. P240,000b. P640,000c. P360,000d. P440,00011. What is the partnership profit for the year ended December 31, 2030?a. P1,800,000b.…
On January 1, 2030, A, B and C formed ABC Partnership with original capital contribution of P600,000, P1,100,000 and P400,000. A is appointed as managing partner.During 2030, A, B and C made additional investments of P1,000,000, P400,000 and P600,000, respectively. At the end of 2030, A, B and C made drawings of P400,000, P200,000 and P800,000, respectively. At the end of 2030, the capital balance of C is reported at P640,000.The profit or loss agreement of the partners is provided below:• 10% interest on original capital contribution of the partners.• Quarterly salary of P80,000 and P20,000 for A and B, respectively.• Bonus to A equivalent to 20% of Net Income after interest and salary to all partners• Remainder is to be distributed equally among the partners What is the capital balance of B on December 31, 2030?a. P1,70,000b. P1,680,000c. P1,780,000d. P1,880,000
BC and DZ entered into a partnership on September 1, 2021 by investing the following assets: Use the following information for the next two questions: BC P 150,000 DZ Cash Merchandise Inventory P 450,000 Land 150,000 650,000 Building Furniture and Fixture 1,000,000 The agreement between BC and DZ provides that profits and losses are to be divided into 40% and 60% to BC and DZ, respectively. The partnership is to assume the P300,000 mortgage loan on the building. 1. If DZ is to receive a capital credit equal to his profit and loss ratio, how much cash must he invest? 2. Assuming the partnership agreement provides that the partners should initially have an equal interest in the partnership capital, what is DZ's capital upon partnership formation?
19. Following is the balance sheet of the WXYZ Partnership at March 31, 2021, when the partnership isto be liquidated: Cash – P6,000; Other Assets – P126,000; Liabilities – P12,400; W, Loan – P12,000; X, Loan– P14,400; Z, Loan – P9,600; W, Capital (25%) – P16,200; X, Capital (25%) – P12,000; Y, Capital (25%)– P37,700; Z, Capital (25%) – P17,700. During the month of April 2021, assets having book value ofP18,000 are sold at a loss of P2,400. Liquidation expenses of P600 are paid as well as P7,200 of theliabilities. Of the liabilities shown in the balance sheet, P240 represents salary payable to Z and P160represents salary payable to Y. On April 30, 2021, how much cash will be distributed to the partners? a. W – 0; X – 0; Y – 0; Z – P9,000b. W – P1,950; X – P1,950; Y – P1,950; Z – P1,950c. W – 0; X – 0; Y – 0; Z – P1,950d. W – 0; X – 0; Y – P9,000; Z – 0