Cis admitted to A & B Partnership under the bonus method. C contributes cash of P20,000 and non-cash assets with a market value of P30,000 and book value of P15,000 in exchange for a 20% ownership interest in the new partnership. Prior to the admission of C, the capital of the existing partnership was P130,000 and an appraisal showed the partnership net assets were fairly stated. A & B shared profits and losses at a ratio of 80/20, respectively. How much is the bonus amount to be recorded for each partner?
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![Cis admitted to A & B Partnership under the bonus method. C contributes cash of P20,000 and non-cash assets with a market
value of P30,000 and book value of P15,000 in exchange for a 20% ownership interest in the new partnership. Prior to the
admission of C, the capital of the existing partnership was P130,000 and an appraisal showed the partnership net assets were
fairly stated. A & B shared profits and losses at a ratio of 80/20, respectively.
How much is the bonus amount to be recorded for each partner?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F37e88713-4b8e-4e7f-b010-19a5de7efd81%2F164f57f1-5a55-4de3-a211-3e31e3419293%2Frf18s8_processed.png&w=3840&q=75)
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- A enters a partnership by contributing the following: . Cash P2,000,000. • Accounts Receivable P400,000; • Land costs P240,000, P400,000 fair market value with an agreed value of P350,000; and Accounts Payable P160,000. The partnership assumed that 10% of Accounts Receivable is deemed uncollectible. Compute the adjusted capital account of A after the formation.GWS and BCP organized the GB Partnership on January 1, 2018. The following entries were made in their capital accounts during 2018. Debit Credit GWS, Capital: January 1 April 1 October 1 P315,000 P105,000 175,000 Debit Credit ВСР, Саpital: January 1 March P413,000 1 September 1 November 1 52,500 105,000 94,500 Required: А. If the partnership profit for the year 2018 computed before salaries or interest is P217,000, determine its distribution between the partners under each of the following independent profit-sharing agreements: (1) Interest at 6% is allowed on average capital investments and the remainder of the profit is divided equally. (2) A salary of P126,000 is to be credited to BCP, 6% interest is allowed on each partner on his ending capital balance and the remainder of the profit in the ratio of 3:2. Salaries are allowed GWS and BCP in amounts of P119,000 and P133,000, respectively, and the remaining profit or resulting loss is divided in the ratio of average capital balance.…A and B enter into a partnership agreement in which B contributes the following: Non-cash Assets Land Building Machinery and Equipment Cost P 100,000 1,000,000 500,000 Comments Cost is equal to the fair value Fair value of which is 80% of its cost Fair value of which is 70% of its cost There is a P200,000 mortgage on the building which the partners agree not to assume in the partnership. A contributes cash of P650,000. Compute the total assets of the partnership upon formation.
- 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 enter into a partnership agreement contributing their respective business' assets at fair market values: Cash Accounts Receivable Machinery and Equipment Land A 60,000 200,000 120,000 B 200,000 430,000 Additional information: An Allowance for Doubtful Accounts of 2% of accounts receivable is to be set up; . The land is subject to a mortgage loan of P24,000 which the partnership will assume. The partnership agreement states that A and B share profits and losses, 40% and 60%, respectively, and partners agreed to bring their capital balances in proportion to the profit and loss ratio. Compute the amount of bonus that should be given to one partner.X and Y are partners sharing profits 6:4, respectively. Capital accounts as of October 1, 2021 are X-P 560,000; Y-P 480,000. They agree to admit Z as a new partner with an investment of P260,000 for a interest in the partnership and that the assets are fairly valued, what would be the capital of Y after the admission of Z?
- 1. Partners MM and LL have profit and loss agreement with the following provisions: salaries of P30,000 and P45,000 for MM and LL, respectively; a bonus to MM of 10% net income after salaries and bonus; and interest of 10% on average capital balances of P20,000 and P35,000 for MM and LL, respectively. One-third of any remaining profits will be allocated to MM and the balance to LL. If the partnership had a net income of P104,500, how much should be allocated to MM, assuming the provisions of the profit and loss agreement are ranked by order of priority, starting with salaries?2. Renalie and Ben are partners who share profits and losses in the ratio of 6:4, respectively. On June 1, 20X2, their respective capital accounts were as follows:• Renalie - P60,000 • Ben - P50,000On the same date, Jeremiah was admitted as a partner with 1/5 interest in capital and profits for an investment of P40,000. What is the capital of Ben after Jeremiah’s admission if the partnership began with a total…-X. Y, and Z formed a partnership on Jnauary 1, 2021, and contributed P150,0003; P200,000; P300,000, respectively. Their articles of co-partnership provide that the operating income be shared among partners as follows: as salary, P24,000 for X; P18,000 for Y; and P12,000 for Z; interest of 12% on the average capital during 2021 of the three partners; and the remainder in the ratio of 4:2:4, respectively. The operating income for the year-end December 31, 2021 amounted to P200,000. X contributed additional capital of P30,000 on July 1, and made a drawing of P10,000 on October 1; Y contributed additional capital of P20,000 on August 1, and made a drawing of P10,000 on October 1; and Z made a drawing of P30,000 on November 1, 2021. How much is the shared profit of partner Z? *1) C is admitted in the partnership of A and B by investing P120,000 for an interestequal to P150,000. Assuming that the net assets of the partnership prior to C'sadmission are fairly valued, this transaction would result in A. a decrease of P30,000 in the total partnership assets B. a decrease in the capital balances of A and B C. an increase in the capital balances of A and B D. the recognition of goodwill by the partnership 2) A partnership records the admission of a new partner through purchase of interest bycrediting the purchaser's capital and debiting A. capital account of other partners B. bonus account C. cash account D. capital account of the selling partner
- Partners MM and LL have profit and loss agreement with the following provisions: salaries of P30,000 and P45,000 for MM and LL, respectively; a bonus to MM of 10% net income after salaries and bonus; and interest of 10% on average capital balances of P20,000 and P35,000 for MM and LL, respectively. One-third of any remaining profits will be allocated to MM and the balance to LL. If the partnership had a net income of P104,500, how much should be allocated to MM, assuming the provisions of the profit and loss agreement are ranked by order of priority, starting with salaries?A, B and C decided to form ABC Partnership on January 1, 2022.. . It was agreed that A will contribute an equipment with historical cost of P800,000 and accumulated depreciation of P500,000. On the date of formation, the fair value of equipment was P400,000. B will contribute an automobile with carrying amount of P1,200,000 and fair value of P1,500,000. The automobile is subject to a loan payable amounting to P300,000 to be assumed by the partnership. The partners agreed that C will have to contribute cash equal to half of B's capital. Compute the total capital of the partnership.10. On October 1, A and B pooled their assets to form a Partnership, with the firm to take over the business assets and assume liabilities. Partners capitals are to be based on net assets transferred after the following adjustments. The partners agreed to the following adjustments: A’s inventory is to be increased by P15,000, while B’s inventory has a current fair market value of P100,000 and an agreed value of P110,000. B’s unadjusted inventory amounted to P90,000. Machinery and equipment are over-depreciated by P5,000 and P8,000 for A and B, respectively. Furnitures and fixtures for partner A has a current fair market value of P60,000 and an agreed value of P50,000. Furnitures and fixtures is carried at its cost amounting to P100,000 with accumulated depreciation of P45,000. Accrued rent income of P10,000 for A, and accrued salaries of P5,000 for B should be recognized on their respective books. The individual trial balances on October 1, before adjustments, follow: DESCRIPTION…