10:21 PM52%1 of 1A Sole Proprietor and an Individual with No Business Form a PartnershipOn Apr. 8, 2019, Tolentino who has her own retail business and Tan, decided to form apartnership wherein they will divide profits in the ratio of 40:60, respectively. Thestatement of financial position of Tolentino is as follows:Tolentino MarketingStatement of Financial PositionApril 8, 2019AssetsCashP 4,000Accounts ReceivableLess: Allowance for Uncollectible AccountsP160,00016,000144;000InventoryEquipmentLess: Accumulated Depreciation200,000P 50,00040,000P388,00010,000Total AssetsLiabilities and CapitalAccounts PayableTolentino, CapitalTotal Liabilities and CapitalP 36,000352,000P388,000Conditions agreed upon before the formation of the partnership:a. The accounts receivable of Tolentino is estimated to be 70% realizable.b. The accumulated depreciation of the equipment will be increased by P10,000.c. The accounts payable will be assumed by the partnership.d. The capital of the partnership is based on the adjusted capital balance of Tolentino.Tan is to contribute cash in order to make the partner's capital balancesproportionate to the profit and loss ratio.

The following calculations are done for Tolentino marketing to show the capital contributions in…

A Sole Proprietor and an Individual with No Business Form a Partnership On Apr. 8, 2019, Tolentino who has her own retail business and Tan, decided to form a partnership wherein they will divide profits in the ratio of 40:60, respectively. The statement of financial position of Tolentino is as follows: Tolentino Marketing Statement of Financial Position April 8, 2019 Assets Cash P 4,000 Accounts Receivable Less: Allowance for Uncollectible Accounts P160,000 16,000 144;000 Inventory Equipment Less: Accumulated Depreciation 200,000 P 50,000 10,000 40,000 P388,000 Total Assets Liabilities and Capital Accounts Payable Tolentino, Capital Total Liabilities and Capital P 36,000 352,000 P388,000 Conditions agreed upon before the formation of the partnership: a. The accounts receivable of Tolentino is estimated to be 70% realizable. p. The accumulated depreciation of the equipment will be increased by P10,000. . The accounts payable will be assumed by the partnership. d. The capital of the partnership is based on the adjusted capital balance of Tolentino. Tan is to contribute cash in order to make the partner's capital balances proportionate to the profit and loss ratio.

A Sole Proprietor and an Individual with No Business Form a Partnership On Apr. 8, 2019, Tolentino who has her own retail business and Tan, decided to form a partnership wherein they will divide profits in the ratio of 40:60, respectively. The statement of financial position of Tolentino is as follows: Tolentino Marketing Statement of Financial Position April 8, 2019 Assets Cash P 4,000 Accounts Receivable Less: Allowance for Uncollectible Accounts P160,000 16,000 144;000 Inventory Equipment Less: Accumulated Depreciation 200,000 P 50,000 10,000 40,000 P388,000 Total Assets Liabilities and Capital Accounts Payable Tolentino, Capital Total Liabilities and Capital P 36,000 352,000 P388,000 Conditions agreed upon before the formation of the partnership: a. The accounts receivable of Tolentino is estimated to be 70% realizable. p. The accumulated depreciation of the equipment will be increased by P10,000. . The accounts payable will be assumed by the partnership. d. The capital of the partnership is based on the adjusted capital balance of Tolentino. Tan is to contribute cash in order to make the partner's capital balances proportionate to the profit and loss ratio.

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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A Sole Proprietor and an Individual with No Business Form a Partnership On Apr. 8, 2020, Tolentino who has her own retail business and Tan, decided to form a partnership wherein they will divide profits in the ratio of 40:60, respectively. The statement of financial position of Tolentino is as follows: Tolentino Marketing Statement of Financial Position April 8, 2020 Assets Cash P 4,000 Accounts Receivable P160,000 Less: Allowance for Uncollectible Accounts 16.000 144,000 Inventory 200,000 Equipment P 50,000 Less: Accumulated Depreciation 10.000 40.000 Total Assets P388,000 Liabilities and Capital Accounts Payable P 36,000 Tolentino, Capital 352,000 Total Liabilities and Capital P388,000 Conditions agreed upon before the formation of the partnership: a. The accounts receivable of Tolentino is estimated to be 70% realizable. b. The accumulated depreciation of the equipment will be increased by P10,000. c. The accounts payable will be assumed by the partnership. d. The capital of the…
A Sole Proprietor and an Individual with No Business Form a Partnership On Apr. 8, 2020, Tolentino who has her own retail business and Tan, decided to form a partnership wherein they will divide profits in the ratio of 40:60, respectively. The statement of financial position of Tolentino is as follows: Tolentino Marketing Statement of Financial Position April 8, 2020 Assets Cash P 4,000 Accounts Receivable P160,000 Less: Allowance for Uncollectible Accounts 16,000 144,000 Inventory 200,000 Equipment P 50,000 Less: Accumulated Depreciation 10,000 40,000 Total Assets P388,000 Liabilities and Capital Accounts Payable P 36,000 Tolentino, Capital 352,000 Total Liabilities and Capital P388,000 Conditions agreed upon before the formation of the partnership: a. The accounts receivable of Tolentino is estimated to be 70% realizable. b. The accumulated depreciation of the equipment will be increased by P10,000. c. The accounts payable will be assumed by the partnership. d. The capital of the…
On Apr. 8, 2020, Tolentino who has her own retail business and Tan, decided to form a partnership wherein they will divide profits in the ratio of 40:60, respectively. The statement of financial position of Tolentino is as follows: Tolentino Marketing Statement of Financial Position April 8, 2020 Assets Cash P 4,000 Accounts Receivable P160,000 Less: Allowance for Uncollectible Accounts 16,000 144,000 Inventory 200,000 Equipment P 50,000 Less: Accumulated Depreciation 10,000 40,000 Total Assets P388,000 Liabilities and Capital Accounts Payable P 36,000 Tolentino, Capital 352,000 Total Liabilities and Capital P388,000
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? OA. R12 000 DR. B. R116 00O DR OC. R52 000 CR D. R12 000 CR S Type here to search
A sole proprietor and an Individual with No business Form a Partnership On Apr. 8, 2020, Tolen tino who has her own retail business and Tan, decided to form a partnership wherein they will divide profits in the ratio of 40:60, respectively. The statement of financial position of Tolentino is as follows: Tolentino Marketing Statement of Financial Position April 8, 2020 A ssets Cash Accounts Receivable Less: Allowance for Uncollectible Accounts P 4,000 P 160,000 16,000 144,000 Inventory Equipment Less: Accumulated Depreciation Total Assets 200,000 P 50,000 10,000 40,000 P388,000 Liabilities and Capital Accounts Payable Tolentino, Capital Total Liabilities and Capital P 36,000 352,000 P388,000 Conditions agreed upon before the formation of the partnership: a. The accoun ts receivable of Tolentino is estimated to be 70% realizable b. The accumulated depreciation of the equipment will be increased by P10,000 c. The accounts payable will be assumed by the partnership. d. The capital of the…
pie 6TT UOI: Use the following account balance information for Granobfin Partnership with income ratios of 2:4:4 for Granger, Noble, and Finn, respectively. Assets Liabilities and Owner's Equity Cash $ 56300 Accounts payable $ 126100 Accounts Granger, Capital $138600 receivable 131500 Noble, Capital 48300 Inventory 437400 Finn, Capital 312200 $625200 $625200 Assume that, as part of liquidation proceedings, Granobfin sells its noncash assets for $509900. The amount of cash that would ultimately be distributed to Finn would be $288600. $312200. $512600. $203960.
The information below relates to “NOT partnership business” for the year ended 31st December, 2019Nyamekye Oliver TwistGH¢’000 GH¢’000 GH¢’000Capital Introduced 20,000 30,000 40,000Drawings 10,000 15,000 20,000i. Nyamekye is entitled to a salaries amounted to GH¢ 9,350,000 per annum, sharing Profit or loss on the basis of capital contributed.ii. Net profit for the period ended 31st December, 2019 was GH¢ 38,500,000. Interest on drawings and Capital are 5% and 10% per annum respectively. All expenses and incomes accrue evenly.iii. Oliver advanced a loan amounted to GH¢ 300,000,000 to “NOT Partnership Business” on 1stSeptember, 2019 but charged an interest of 12.5% per annum on the loan.iv. Twist Retired on 31st December, 2019 but granted his net worth in the partnership business as a loan to the business charging Interest of 9% per annum on the loan.Required a. Prepare Profit or Loss Appropriation for the year ended 31/12/2019. b. Partners’ Capital Account for the year ended 31/12/2019…
ted Apel and Lawer are in partnership, sharing profits and losses in the ratio 3:2. it QUESTIONS 6 Question One The following information were taken from their books for the year ended 31 December 2015, before the completion of their profit and loss appropriation nt. account. an GH¢ Current accounts (1 January 2011) Apel Lawer 640 (Dr) 330 (Cr) Drawings - Apel 3,000 2,000 Lawer 6,810 Net Profit 540 Interest on Capital - Apel Lawer 720 2,000 Salary - Apel Interest on Drawings - Apel 270 180 Lawer Prepare for the year ended 31 December 2015: a. The profit and loss appropriation account of Apel and Lawer. b. The current accounts in the ledger for Apel and Lawer.
16:28 Sat Feb 18 4. On October 1, 20x4, J and K decided to pool their assets and form a partnership. They allocate profit and loss in the ratio of 44:56 for J and K, respectively. The firm is to take over business assets and assume business liabilities and capitals are to be based on net assets transferred after the following adjustments: a. J's inventory amounting to P12,000.00 is worthless, while K's agreed value at inventory amounted to P150,000.00 b. Uncollectible accounts of P7,200.00 for J is to be provided: a 5% allowance is to be recognized in the books of K c. Accrued rent income of P12,000.00 on J, and accrued salaries of P9,600.00 on K should be recognized on their respective books Interest at 16% on Notes receivable dated August 17, 20x4 should be accrued d. The office supplies unused amounted to P24,000.00 The equipment's agreed value amounted to P60,000.00 The furniture's and fixture has a fair market value of P108,000.00 Interest at 12% on Notes payable dated July 1,…
16:27 Sat Feb 18 4. On October 1, 20x4, J and K decided to pool their assets and form a partnership. They allocate profit and loss in the ratio of 44:56 for J and K, respectively. The firm is to take over business assets and assume business liabilities and capitals are to be based on net assets transferred after the following adjustments: a. J's inventory amounting to P12,000.00 is worthless, while K's agreed value at inventory amounted to P150,000.00 b. Uncollectible accounts of P7,200.00 for J is to be provided: a 5% allowance is to be recognized in the books of K c. Accrued rent income of P12,000.00 on J, and accrued salaries of P9,600.00 on K should be recognized on their respective books Interest at 16% on Notes receivable dated August 17, 20x4 should be accrued d. e. The office supplies unused amounted to P24,000.00 f. The equipment's agreed value amounted to P60,000.00 g. h. The furniture's and fixture has a fair market value of P108,000.00 Interest at 12% on Notes payable dated…
ull Telkom-StayHome... 23:45 QI 11% C Adax Designs Services is a partnership with Adam and Max as partners. The partnership has been operating successfully for a number of years now. The partners have a written partnership agreement. The following information was extracted from the accounting records of Adax. Design Services for the financial year ended 28 February 2021: Balances in the ledger as at 28 February 2021 Land and buildings at cost 835 000 Accumulated depreciation: buildings (65 000) Equipment at carrying amount 270 000 Debtors 103 000 Capital- Andile 400 000 Capital- Sipho 300 000 Current account- Andile Credit balance (1 March 2020) 40 000 Current account -Sipho - Debit balance (1 March 2020 20 000 Drawings - Andile: General 130 000 Drawings - Sipho: General 102 000 Net profit for the year ended 28 February 2021 800 000 The following must still be taken.into account: 1. The partnership agreement makes provision for the following: Interest on capital must be provided at 12%…
PROBLEM G: On December 31, 2019, the statement of financial position of BRY Partnership shows the following data with profit or loss sharing ratio of 2:3:5: Cash P1,500,000 Liabilities to outside creditors В, Сарital R, Capital Y, Capital P2,000,000 1,500,000 1,250,000 750,000 Non-cash asset 4,000,000 On January 1, 2020, the partners decided to wind up the partnership affairs. During January, non-cash assets with book value of P3,000,000 were sold for P2,000,000 and liquidation expenses amounting to P200,000 were paid. 40% of total liabilities were also paid during January. P300,000 cash was withheld during January for future liquidation expenses. 8. What is the amount received by partner R on January 31, 2020? A. 200,000 B. 380,000 C. 500,000 D. 890,000