8. Account balances for the ABC, DEF, and GHI partnership on June 1, 2022 are as follows:P 21,000P 80,000CashAccounts receivable63,00050,000InventoryEquipmentABC loan120,000150,00015,000Accounts payableNotes payableABC, capital (40%)DEF, capital (60%)GHI, capital (10%)43,600150,00045,400The partners have decided to liquidate the business. Activities for the first month ofliquidation are as follows:a. ABC is short of funds and the partners agree to charge her loan to her capitalaccount.b. P40,000 is collected on the accounts receivable; P4,000 is written off asuncollectible.c. Half the inventory is sold for P50,000.d. Equipment with a book value of P60,000 is sold for P55,000.e. The P50,000 bank note plus P600 accrued interest is paid in full.f. The accounts payable are paid.g. Liquidation expenses of P2,000 are paid.h. Except for a P15,000 contingency fund, all available cash is distributed topartners at the end of June.Compute for the amount to be received by GHI.

Cash P21000 ABC Loan charge from ABC's capital Account P15000 Collection from Accounts…

Answered: Compute for the amount to be received…

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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19 AA and BB are partners with capital accounts that had the following transactions during 2022: AA BB Debit Credit Debit Credit Beginning balance, January 1 P270,000 P280,000 February 28 P80,000 March 1 120,000 April 30 160,000 June 1 P100,000 August 1 140,000 September 30 40,000 October 31 40,000 The partnership agreement provides for the following: Interest of 9% is to be provided to AA Salaries of P4,000 is to be given to BB per quarter A bonus of 25% is to be given to AA based on net income after interest and salaries Remaining balance is to be allocated on a ratio of 40:60. The income summary account has a credit balance of P1,050,000 before profit distribution. BB has a Drawing account amounting to P40,000 which is a withdrawal made by BB in anticipation of future profits on July 1, 2022. How much is the…
D. The accounts of the partnership of E, R and M at the end of its fiscal year on September 30, 2023 are as follows: P 360,000 Loan from M P 240,000 1,080,000 3,120,000 E, capital (30%) 120,000 R, capital (50%) 720,000 Liabilities 1,200,000 M, capital (20%) 360,000 Partner M received P216,000 on the first distribution of cash and liquidation expenses of P48,000 were expected to be incurred up to December 31, 2023. 5. What was the cash realised from the initial sale of assets? Cash Other assets Loan to R
17. The following information relates to XXX and YYY’s partners capital accounts for fiscalyear ending June 30: XXXX YYY Balance, July 1 P86,400 P115,200 Add: Additional investment, January 1 38,400 19,200 Net Income for the year: Salaries 20,500 14,500 Interest 7,920 9,360 Bonus 3,720 Remainder 14,880 9,920 Total 171,820 168,180 Deduct: Drawings Monthly amounts 15,070 15,060 Additional drawings, June 30 2,400 403 Balance, June 30 154,350 152,717 Bonus is based on net income after salaries, interest and bonus. If the net income remains the same the following fiscal year, and there is no change in the partnership agreement nor any additional investment, how much will be YYY’s total share of the net income in the following year? A. P33,577 B. P33,780 C. P33,874 D. P33,696
The assets and capital of QRS Partnership at the end of its fiscal year on October 31, 2021 are as follçavs: ASSETS LIABILITIES AND CAPITAL 30,000 Liabilities 40,000 Loan from S 80,000 Q, Capital (30%) 140,000 R, Capital (50%) 10,000 S, Capital (20%) 100,000 20,000 90,000 60,000 Cash Receivable, net Merchandise Inventory Non-current Asset Loan to R 30,000 The partners decide to liquidated the partnership. They estimate that the noncash assets, other than the loan to R, can be converted into P200,000 cash over the two-months period ending December 31, 2021. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Compute the amount to be received by Q if P150,000 is available for first distribution?
A, B and C are in partnership sharing profits and losses at the ratio of 5: 3:2. The balance sheet of the firm on 31.12.2021 was as follows: Liabilities Capital A/cs A B C Bank Loan Trade payables Balance Sheet Assets Sundry Fixed Assets Inventories 50,000 40,000 Trade receivables 30,000 Joint Life Policy 40,000 Bank 30,000 1,90,000 80,000 50,000 30,000 20,000 10,000 1,90,000 On 1.1.2022, A wants to retire, B and C agreed to continue at 2:1. Joint Life Policy was taken on 1.1.2016 for 1,00,000 and its surrender value as on 31.12.2021 was 25,000. For the purpose of A's retirement goodwill was raised for ₹1,00,000. Sundry Fixed Assets was revalued for 1,10,000. But B and C did not prefer to show such increase in assets in the Balance Sheet. Also they agreed to bring necessary cash to discharge 50% of the A's claim, to make the bank balance 25,000 and to make their capital proportionate. Prepare necessary journal entries.
For the year 2021, the partnership of AMMAR and BANU realized a net profit of P240,000. The capital accounts of the partners show the following postings: Jan. 1 May 1 July 1 Aug. 1 Oct. 1 AMMAR Debit Credit Debit Credit 20,000 10,000 120,000 BANU 10,000 10,000 5,000 80,000 20,000 Question 5 If the profits are to be divided based on average capital, how much will be the share of AMMAR?
The assets and capital of QRS Partnership at the end of its fiscal year on October 31, 2021 are as follows: ASSETS LIABILITIES AND CAPITAL Cash 30,000 Liabilities 100,000 Receivable, net 40,000 Loan from S 20,000 Merchandise Inventory 80,000 Q, Capital (30%) 90,000 Non-current Asset 140,000 R, Capital (50%) 60,000 Loan to R 10,000 S, Capital (20%) 30,000 The partners decide to liquidated the partnership. They estimate that the noncash assets, other than the loan to R, can be converted into P200,000 cash over the two-months period ending December 31, 2021. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Compute the amount to be received by Q if P150,000 is available for first distribution?
14. On December 31, 2015, the statement of financial position of JMR Partnership is presented below: Assets, at cost 180,000 JJ, loan JJ, capital мм, саpital RR, capital Total 10,000 45,000 40,000 85,000 180,000
The assets and capital of QRS Partnership at the end of its fiscal year on October 31,2021 are as follows: Assets Liabilities and Capital Cash 30,000 Liabilities 100,000 Receivable, net 40,000 Loan from S 20,000 Merchandise inventory 80,000 Q, Capital (30%) 90,000 Non-current Asset 140,000 R, Capital (50%) 60,000 Loan to R 10,000 S, Capital (20%) 30,000 The partners decide to liquidated the partnership. They estimated that the noncash assets other than the loan to R, can be converted into P200,000 cash over the two-months period ending December 31, 2021. Cash is o be distributed to the appropriate parties as it becomes available during the liquidation process. Compute the amount to be received by Q if P150,000 is available for first distribution? Please provide a good accounting form for the solution. Thank you so much!
4. On January 31, 2021, partners L, M and N had the following loan and capital account balances (after closing entries for January): Loan Receivable from L Loan Payable to N L, Capital М, Сарital N, Capital P20,000 dr 60,000 cr 30,000 dr 120,000 cr 70,000 cr The partnership's income sharing ratio was L – 50%, M – 20%, and N – 30%. On January 31, 2021, O was admitted to the partnership for a 20% interest in total capital of the partnership in exchange for an investment of P40,000 cash. Prior to O's admission, the existing partners agreed to increase the carrying amount of the partnership's inventories to current fair value, a P60,000 increase. The capital account to be credited to O: а. Р60,000 b. P40,000 с. Р52,000 d. Р46,000
On March 1, 2018, X and Y formed a partnership. The partners contributed the following:X YCash P500,000 P400,000Accounts Receivable 300,000 200,000Allowance for doubtful accounts 50,000 20,000Inventory 150,000 100,000Equipment 500,000 200,000 Accumulated depreciation 100,000 25,000Accounts Payable 50,000 400,000Note Payable 200,000 The partners agree on the following:a. P10,000 of the accounts receivable of X is to be written-off.b. An allowance for doubtful accounts of 15% is to be established on the remaining receivables of Xand Y.c. The inventory of Y is to be valued at P140,000.d. The equipment of X is under depreciated by P20,000 and the equipment of Y has a fair value ofP190,000.e. The note of X is dated December 1, 2017 and is subject to a 12% interest . Interest had not yetbeen accrued.f. The partners agree on a 2:1 profit and loss ratio.g. The partners agree to bring their capital balance proportionate to their profit and loss ratio.If Y's Capital is to be used as basis, how…
A. The assets and equities of the NSW Partnership at the end of its fiscal year, October 31, 2020, are as follows: Profit and loss agreement is 30:50:20. Cash P 150,000 Accounts receivable -net 200,000 Inventory 400,000 Plant Assets - net 700,000 Loan to South 50,000 Liabilities P 500,000 West, Loan 100,000 North, Capital 450,000 South, Capital 300,000 West, Capital 150,000 The partners decide to liquidate the partnership. They estimate that the non-cash assets other than the loan to South can be realized into P 1,000,000 over the two-month period ending December 31, 2020. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Required: a) Assuming that P…

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