AA and BB entered into partnership on March 1, 2022 by investing the following assets: AA BB Cash P 30,000 Inventory P 90,000 Equipment 160,000 Furniture 200,000 The agreement between AA and BB provides that profits and losses are to be divided 40% and 60%, respectively, and that the partnership is to assume liability on the equipment of P60,000. The partners further agree that BB is to receive a capital credit equal to his profit and loss ratio. How much is the cash to be invested by BB?
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AA and BB entered into
|
|
AA |
BB |
|
Cash |
P 30,000 |
|
|
Inventory |
|
P 90,000 |
|
Equipment |
|
160,000 |
|
Furniture |
200,000 |
|
The agreement between AA and BB provides that profits and losses are to be divided 40% and 60%, respectively, and that the partnership is to assume liability on the equipment of P60,000. The partners further agree that BB is to receive a capital credit equal to his
How much is the cash to be invested by BB?
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- On March 1, 2020, JM and KK formed a partnership with each contributing the following assets (see attached image) 1. The building is subject to mortgage loan of P800,000, which is to be assumed by the partnership agreement provides that JM and KK share profits and losses 30% and 70%, respectively. On March 1, 2020 the balance in KK's capital account should be: A. 3,700,000 C. 2,900,000B. 3,045,000 D. 2,485,000 2. Assume that the mortgage loan is not assumed by the partnership and the partners agree to withdraw or contribute additional cash to make their capital balances agree with their profit and loss ratio. On March 1, how much cash should be invested/(withdrawn) by KK? A. (1,215,000) C. (655,000)B. (415,000) D. 655,000A and B entered into a partnership on April 1, 2020 by investing the following assets: A - Cash P30,000 and Office Equipment with an agreed value of P200,000. B-Accounts receivable P90,000 and Transportation Equipment of P160,000. The agreement between A and B provides that profits and losses are to be divided into 40% and 60% respectively, and that the partnership is to assume a liability on the Transportation Equipment of P60,000. The partnership further agreed that B is to receive a capital credit equal to his profit and loss ratio. How much cash is to be invested by B?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?
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- AAA, BBB and CCC are partners sharing profits in the ratio of 5:3:2, respectively. As of December 31, 2021, their capital balances were P87,800 for AAA, P80,000 for BBB and P67,200 for CCC. On January 1, 2022, the partners admitted DDD as a new partner and according to their agreement; DDD will contribute P80,000 in cash to the partnership and also pay P10,000 for 15% of BBB's share. DDD will be given a 20% share in profits, while the original partners' share will be proportionately the same as before. After the admission of DDD, the total capital will be P330,000 and DDD's capital will be P70,000. What is the balance of BBB's capital, after the admission of CCC? A. 81,100 B. 72,600 C. 79,100 D. 74,600AA, BB and CC formed a partnership on January 1, 2022. Their capital balances before share in profit or loss on December 31 were P300,000, P400,000 and P500,000, respectively. The partnership agreement provides for the following manner of distributing profits: Monthly salaries for AA, BB and CC of P4,000, P3,000 and P2,000, respectively 12% interest based on the weighted average capital Residual profit to AA, BB and CC in the ratio of 2:4:4, respectively The partnership profit for the year 2022 amounted to P350,000. During the year, AA contributed additional capital of P60,000 on July 1 while BB contributed P40,000 on March 30. AA and BB made permanent withdrawals of capital on October 1 of P2,000 each while CC withdrew P36,000 on October 31. How much is the ending capital of BB as of December 31, 2022?AA, BB and CC formed a partnership on January 1, 2022. Their capital balances before share in profit or loss on December 31 were P300,000, P400,000 and P500,000, respectively. The partnership agreement provides for the following manner of distributing profits: Monthly salaries for AA, BB and CC of P4,00O, P3,000 and P2,000, respectively • 12% interest based on the weighted average capital Residual profit to AA, BB and CC in the ratio of 2:4:4, respectively The partnership profit for the year 2022 amounted to P350,000. During the year, AA contributed additional capital of P60,000 on July 1 while BB contributed P40,000 on March 30. AA and BB made permanent withdrawals capital on October 1 of P2,000 each while CC withdrew P36,000 on October 31. How much is the share of AA in the partnership net income?
- On January 1, 2030, AAA, BBB, CCC and DDD formed ABCD Trading Co., a partnership with capital contributions as follows: AAA – P50,000; BBB – P25,000, CCC – P25,000 and DDD – P20,000. The partnership agreement stipulates that each partner shall receive a 5% interest on capital contributed and that AAA and BBB shall receive salaries of P5,000 and P3,000, respectively. The agreement further provides that CCC shall receive a minimum of P2,500 per annum and DDD, a minimum of P6,000 which is inclusive of amounts representing interest and their respective shares in partnership profits. The balance of the profits shall be distributed among AAA, BBB, CCC and DDD in the ratio of 3:3:2:2. 15. What amount must be earned by the partnership in 2030, before any charge for interest and partners’ salaries, in order that AAA may receive an aggregate of P12,500 including interest, salary and share of profits? A. P30,667 B. P32,333 C. P16,667 D. P30,000 16. RRR is trying to decide whether to accept a…In the January 1, 2020 Kalaw and Borromeo formed partnership with each contributing the following: Kalaw Borromeo Cash 50,000 70,000 Equipments 50,000 75,000 Building 225,000 Furniture 10,000 Accounts payable 20,000 Loans Payable 100,000 All liabilities are to be assumed by the partnership. The partners agreed the equipments should be provided a 20% depreciation and the building has a market value of 200,000. The value of the furniture should be decreased by P2,000 There is an unrecorded liability in the books of Kalaw amounting to P2,000 and accrued interest on loans to Borromeo amounting to 5% of the loans. How much is the total capital of the partners before the agreed adjustmentsOn March 1, 2021, Candace and Noreen formed a partnership with each contributing the following assets: NOREEN CANDACE Cash 140,000 60,000 Office Equipment 150,000 50,000 Building 450,000 Furniture and Fixtures 20,000The building is subject to a mortgage loan of P180,000, which is to be assumed by the partnership. The partnership agreement provides that Candace and Noreen share profits and losses at 30% and 70%, respectively. Assuming that the partners agreed to bring their respective capital in proportion to their P&L ratios, and using Noreen capital as the base. Compute the capital account balance of Noreen as of March 1, 2021 Compute the additional cash to be invested by Candace
