A admits B as partner in business. Accounts in the ledger for A on October 31, 2020, just before the admission of B show the following balances: Cash: P50,000 Accounts receivable: 110,000 Notes receivable: 20,000 Inventories: 50,000 Accounts payable: 30,000 It is agreed that for the purposes of establishing A's interest, the following adjustments shall be made: An allowance for doubtful accounts of 5% of accounts receivable is to be established. An inventory amounting to P10,000 is worthless. Prepaid expenses of P1,000 and accrued expense of P2,000 are to be recognized. An interest of 10% on notes receivable amounting P10,000 dated April 30, 2020 is to be accrued. B is to invest sufficient cash to obtain a 1/4 interest in the Partnership. Determine the amount of cash investment by Partner B.

A admits B as partner in business. Accounts in the ledger for A on October 31, 2020, just before the admission of B show the following balances: Cash: P50,000 Accounts receivable: 110,000 Notes receivable: 20,000 Inventories: 50,000 Accounts payable: 30,000 It is agreed that for the purposes of establishing A's interest, the following adjustments shall be made: An allowance for doubtful accounts of 5% of accounts receivable is to be established. An inventory amounting to P10,000 is worthless. Prepaid expenses of P1,000 and accrued expense of P2,000 are to be recognized. An interest of 10% on notes receivable amounting P10,000 dated April 30, 2020 is to be accrued. B is to invest sufficient cash to obtain a 1/4 interest in the Partnership. Determine the amount of cash investment by Partner B.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 21CE

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A admits B as partner in business. Accounts in the ledger for A on October 31, 2020, just before the admission of B show the following balances: Cash: P50,000 Accounts receivable: 110,000 Notes receivable: 20,000 Inventories: 50,000 Accounts payable: 30,000 It is agreed that for the purposes of establishing A's interest, the following adjustments shall be made: • An allowance for doubtful accounts of 5% of accounts receivable is to be established. o An inventory amounting to P10,000 is worthless. • Prepaid expenses of P1,000 and accrued expense of P2,000 are to be recognized. • An interest of 10% on notes receivable amounting P10,000 dated April 30, 2020 is to be accrued. B is to invest sufficient cash to obtain a 1/4 interest in the Partnership. Determine the amount of cash investment by Partner B.
A admits B as a partner in business. Accounts in ledger for A on October 31, 2021, just before the admission of B show the following balances: Cash: 50,000 Accounts Receivable: 110,000 Notes Receivable: 20,000 Inventories: 50,000 Accounts Payable: 30,000 It is agreed that for the purposes of establishing A's interest, the following adjustments shall be made: An allowance for doubtful accounts of 5% of accounts receivable is to be established. An inventory amounting to 10,000 is worthless. Prepaid expenses of 1,000 and accrued expense of 2,000 are to be recognied. An interest of 10% on notes receivable amounting 10,000 dated April 30,2020 is to be accrued. B is to invest sufficient cash to obtain a 1/4 interest in the partnership. Determine the amount of cash investment by Partner B.
Z admits A as a partner in business. Accounts in the ledger for Z on November 20, 2018, just before the admission of A, show the following balances: Cash Accounts Receivable Merchandise Inventory Prepaid expense Accounts Payable Z, Capital P 6,800 14,200 20,000 1,000 9,000 33,000 It is agreed that the purposes of establishing Z's interest the following adjustments shall be made: a) An allowance for doubtful accounts of 3% of accounts receivable is to be established b) The merchandise inventory is to be valued at P23,000. c) Prepaid salary expenses of P600 and accrued rent expense of P800 are to be recognized. A is to invest sufficient cash to obtain a 1/3 interest in the partnership. (1) Z's adjusted capital before the admission of A; and (2) the amount cash investment by A:
7. X invited Y to a partnership interest in his business. Accounts in the ledger of X on January 1, 2020, before the admission of Y, show the following: Cash-P208,000; Accounts receivable-P460,000; Inventory P1,440,000; Accounts payable-P496,000. It is agreed that for the purpose of establishing the interest of X, the following adjustments shall be made: a) an allowance for bad debts of 8% based on the outstanding accounts receivable is to be established. b) the inventory is to be valued at P1,000,000 c) Prepaid expenses of P72,000 and accrued expenses of P32,000 are to recognized. Y is to invest sufficient cash for a one-third interest in the partnership. How much is the adjusted capital of Y?
Z admits A as a partner in business. Accounts in the ledger for Z on November 20, 2018, just before the admission of A, show the following balances: Cash P 6,800Accounts Receivable 14,200Merchandise Inventory 20,000Prepaid expense 1,000Accounts Payable 9,000Z, Capital 33,000 It is agreed that the purposes of establishing Z's interest the following adjustments shall be made:a) An allowance for doubtful accounts of 3% of accounts receivable is to be establishedb) The merchandise inventory is to be valued at P23,000.c) Prepaid salary expenses of P600 and accrued rent expense of P800 are to be recognized. A is to invest sufficient cash to obtain a 1/3 interest in the partnership.(1) Z's adjusted capital before…
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
October 1, 2019, Deku and Dabi decided to pool their assets and form a partnership. The firm is to take over the business assets and assume business liabilities; equities are to be based on net assets transferred after the following adjustments: a. Dabi's inventory is to be valued at P350,000 b. An allowance for uncollectible accounts of P9,000 and P7,500, respectively should be set up. c. Accrued expenses of P21,000 are to be recognized on Deku's books. d. Dabi is to contribute sufficient cash to give him 60% interest in the new firm Statements of financial position for Deku and Dabi in October 1 before adjustments are presented below: Cash Accounts receivable Merchandise inventory Equipment Accum. Depr. - Equip. Total assets Accounts payable Capital Total liabilities and capital Instructions: Dabi Deku 187,500 112,500 450,000 375,000 400,000 300,000 250,000 300,000 (112,500) (37,500) 1,175,000 1,050,000 345,000 830,000 1,175,000 250,000 800,000 1,050,000 1. Give the entries to adjust…
Y admits Z for a partnership in his business. The balance sheet accounts of Y on November 30, 2023 prior to admission of Z are as follows: DR CR Cash ? Accounts receivable 336,000 Inventory 504,000 Accounts Payable 173,600 Y, capital ? It is agreed that for purpose of establishing Y’s interest, the following adjustments should be made: An allowance for doubtful accounts of 2% of accounts receivable is to be established The inventory is to be valued at P560,000 Prepaid expenses of 18,200 and accrued expenses of 11,200 are to be recognized. Y invested cash of 397,740 to give him 1/3 interest in the total capital of the firm. What is the capital balance of Y before admission of Z? (ANSWER IS 739,200 I need solution.)
2. Amion admits Basa for a partnership interest in his business. The balance sheet accounts of Amion on November 30, 2020 prior to the admission of Basa are as follows: Debit Credit Cash 312,000 Merchandise inventory 468,000 Accounts receivable Accounts payable P161,200 Amion, capital
The following information relates to partner for the year ended 29 February 2020: Current account credit balance on 29 February 2020 20 000 Profit share 50 000 Salaries 180 000 Interest on capital 24 000 Drawings 220 000 Interest on drawings 2 000 What is the balance in the Current account of the partner on 01 March 2019? A. R12 000 DR O B. R116 000 DR OC. R52 000 CR O D. R12 000 CR
1. A salary allowance of RM20,000 to Kalmia and RM50,000 to Wardah.2. The remainder is to be divided equally. a) Prepare a schedule which shows the division of net income to each partner.b) Prepare the closing entries for the division of net income and for the drawingaccounts at 31 December, 2020.
With the given details given below, show the journal entries made in the books of A. Date=01.01.2019 A and B draw bills on each other at 3 months for 5,000 for their mutual accommodation. They discount each other‘s bill at 8% p.a. and, on maturity, each party honours his own acceptance.