capital account at the date the land is sold
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Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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- Brother and Sister are partners who are changing their profit and loss ratios from 60:40 to 45:55. At the date of change, the partners choose to revaluate assets with market value different from their book values. One asset revalued is land with a book value of P500,000 and a market value of P1,200,000. Two years after the profit and loss ratios are changed, the land is sold for P2,000,000. What is the amount of change in Sister’s capital account at the date the land is sold? A. 320,000 C. 600,000 B. 440,000 D. 825,000Brother and Sister are partners who are changing their profit and loss ratios from 60:40 to 45:55. At thedate of change, the partners choose to revaluate assets with market value different from their book values.One asset revalued is land with a book value of P500,000 and a market value of P1,200,000. Two yearsafter the profit and loss ratios are changed, the land is sold for P2,000,000. if I included the revaluation surplus my answer will be 825,000 and my other answer if it is not included is 440k. Help me please.. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $10,000. The capital balances of each partner are $131,000 and $185,000, respectively, prior to the revaluation. Question Content Area a. Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area b. Provide the journal entry for Ortiz’s admission under the following independent situations: 1. Ortiz purchased a 20% interest for $66,000. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area 2. Ortiz purchased a 30%…
- Brother and Sister are partners who are changing their profit and loss ratios from 60:40 to 45:55. At the date of change, the partners choose to revaluate assets with market value different from their book values. One asset revalued is land with a book value of P500,000 and a market value of P1,200,000. Two years after the profit and loss ratios are changed, the land is sold for P2,000,000. What is the amount of change in Sister’s capital account at the date the land is sold? A. 320,000 C. 600,000 B. 440,000 D. 825,000 My answer is either B or D. Can you please show me the right answer by giving a detailed solution? Thank you.B and S are partners who are changing their profit and loss ratios from 60:40 to 45:55. At the date of change, the partners choose to revaluate assets with market value different from their book values. One asset revalued is land with a book value of $500,000 and a market value of $1,200,000. Two years after the profit and loss ratios are changed, the land is sold for $2,000,000. How much is the amount of change in S capital account at the date the land is sold?A. 320,000 B. 440,000 C. 600,000 D. 825,000Maria, Leonora and Teresa are partners with adjusted capital balances of P165,000, P150,000 and P180,000 respectively and divide profit and loss equally. At the end of the year, Maria decides to withdraw from the partnership. Maria will receive cash settlement of P150,000 Instruction: Give the entry to record the withdrawal of Maria assuming- a. Bonus Method is used b. Revaluation of Asset method is usea
- On February 14, AA and BB formed a partnership and contributed the following assets at historical costs: AA BB Cash P600,000 P200,000 Inventories ? ? Furniture and fixtures 40,000 Delivery equipment 80,000 Land 300,000 The land was subject to a mortgage which has an unpaid balance of P50,000. The mortgage will be assumed by the partnership. AA and BB agreed to share profits and losses in the ratio of 1:2, respectively. The partners agreed to contribute inventories (BB is to contribute inventories worth 2.5 times the peso value of the inventories to be contributed by AA) in order to have their capital credits in the same ratio as their profits and losses ratio. How much is the capital account of AA upon formation of the partnership?1. Partners X, Y and Z have capital balances of $80, 000, $180,000 and $60,000 respectively. Immediately prior to liquidation. Total remaining assets have a book value of $320,000 and assume liabilities have been paid. There is one remaining asset with a fair market value of $70,000. All three partners agree to share profit and loss equally. Z wishes to take the asset with him and start a new business and would accept $70,000 in cash; the remaining partners agree this would be fair. How much cash in addition to the asset would first be distributed to Z before any of the other partners receive anything? a. $30,000 b. $100,000 c. $240,000 d. $50,000X, Y, and Z are partners sharing profits and losses in the ratio of 5:3:2. During the year, their investments and withdrawals are as follows: Investment of X, Y, and Z for P200,000, P175,000 and P375,000 respectively. Withdrawals of X, Y, and Z amounting to P125,000, P62500 and P62,500 respectively. On December 31, 2021, the partners decided to liquidate their business. After exhausting partnership assets, liabilities of P125,000 remain unpaid. X is personally insolvent. The gain or loss on realization is:
- On January 1, 2022, A, B, C are new lawyers and agreed to form a partnership. . A is to contribute cash of P150,000 and his computer originally costing P160,000 but has a fair value of P125,000. . B is to contribute cash of P180,000. . C is to contribute vehicle costing P400,000 with a fair value of P420,000. Partners agreed to share profits equally. Additional investments made were P80,000 by A and P100,000 by C. Withdrawals: Each partner is allowed to withdraw up amount from the business each year. During the year, Partnership incurs a loss of P60,000. Compute for the A's ending capital balance. to P60,000 per year. Assume further that each partner withdrew the maximumGriffin and Rhodes formed a partnership on January 1, 2022. Griffin contributed cash of P120,000 and Rhodes contributed land with a fair value of P160.000. The partnership assumed the mortgage on the land which amounted to P40,000 on January 1. Rhodes originally paid P90,000 for the land. On July 31, 2022, the partnership sold the land for P190,000. Assuming Griffin and Rhodes share profits and losses equally, how much of the gain from the sale of land should be credited to Griffin? O 30,000 15,000 O 35,000 12.857 3. Paul and Ray sell instruments through their partnership. To bring in additional funds and expertise, they decide to add Janet to the partnership. Paul's capital is P400,000, Ray's capital is P200,000, and Janet invested P180,000. It was agreed that Janet and Ray will have equal capital balances and Paul will have a 35% capital interest. Using the bonus method, what will be the adjusted capital of Paul? O 273,000 O 300,000 O 253,500 O 260,000In 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 adjustments