Dino, Doods and Dong have the following accounts and their normal balances on July 31, 2015, the dale the partners agreed to liquidate their 3D Partnership Cash : |20,000 Accounts Receivable 25,000 Allowance for Bad Debts 5,000 Merchandise Inventory 60,000 Furniture & Equipment 50,000 Accumulated Depreciation 5,000 Accounts Payable 10,000 Notes Payable 27,000 Loan due to Dino 5,000 Loan due to Doods 7,000 Dino, Capital 20,000 Doods, Capital 40,000 Dong, Capital 36,000 The partners divide profits and losses 4:1:5, respectively. Sales proceeds follow: Accounts receivable 10,000 Merchandise Inventory 30,000 Furniture & Equipment 20,000

Dino, Doods and Dong have the following accounts and their normal balances on July 31, 2015, the dale the partners agreed to liquidate their 3D Partnership Cash : |20,000 Accounts Receivable 25,000 Allowance for Bad Debts 5,000 Merchandise Inventory 60,000 Furniture & Equipment 50,000 Accumulated Depreciation 5,000 Accounts Payable 10,000 Notes Payable 27,000 Loan due to Dino 5,000 Loan due to Doods 7,000 Dino, Capital 20,000 Doods, Capital 40,000 Dong, Capital 36,000 The partners divide profits and losses 4:1:5, respectively. Sales proceeds follow: Accounts receivable 10,000 Merchandise Inventory 30,000 Furniture & Equipment 20,000

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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Show the solution in good accounting form On March 1, 2018, X and Y formed a partnership. The partners contributed the following: X Y Cash P500,000 P400,000 Accounts Receivable 300,000 200,000 Allowance for doubtful accounts50,000 20,000 Inventory 150,000 100,000 Equipment 500,000 200,000 Accumulated depreciation 100,000 25,000 Accounts Payable 50,000 400,000 Note Payable 200,00 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 receivatbies of X and 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 ofY has a fair value of P190,000. E.…
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…
PROBLEM SOLVING: The following balances were taken from the book of TIWALA-LANG Partnership as of July 1, 2018 when the partnership decided to liquidate: P 20,000 60,000 90,000 185,500 10,000 15,500 3,000 122,000 130,000 40,000 35,000 Cash Accounts Receivable Furniture & Fixtures Equipment Accounts Payable Notes Payable Payable, Lang TIng, Capital WAng, Capital LAy-at, Capital Lang, Capital Profit and loss ratio is 2:2:3:3, respectively, Cash is distributed to partners as it becomes available. Non-cash assets were sold for P200,000 during the liquidation process with liquidation cost amounting to P3,000. Assume that TIng and WAng are solvent and LAY-at and LAng are insolvent. REQUIRED: Prepare the following: A. STATEMENT OF LIQUIDATION B. Corresponding JOURNAL ENTRIES
On June 1, 2015, DAVE and MAR are combining their separate business to form a partnership. Cash and noncash assets are to be contributed. The noncash assets to be contributed and the liabilities to be assumed are as follows: DAVE Fair value MAR Book value Account receivable Inventory PPE Accounts payable Book value P 25,000 40,000 100,000 15,000 P26,250 450,000 91,250 (15,000) P20,000 20,000 86,250 11,250 Fair value P19,500 20,750 82.250 11,250 DAVE and MAR are to invest equal amounts of cash such at hat the contribution of DAVE would be 10% more than the investment of MAR 8. What is the amount of cash presented on the partnership's statement of financial position on June 1, 2015? D. 251,250 A. 276,250 B. 480,500 C. 552,500
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
Q7 Shaun and Morgan are partners in a firm sharing profits and losses equally. On 1st April, 2014, the capitals of the partners were Shaun $ 4,00,000 and Morgan $ 3,00,000. The Profit and Loss Appropriation Account of the firm showed a net profit of $ 7,50,000 for the year ended 31st March, 2015. The terms of Partnership Deed provided the following: Transfer 10% of distributable profits to reserve fund. Interest on Capitals @ 6% per annum. Interest on drawings 6% per annum. Drawings being Shaun $ 80,000 and Morgan $ 60,000. Prepare Profit and Loss Appropriation Account for the year ended 31st March 2015.
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.…
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? A. R12 000 DR O B. R116 000 DR OC. R52 000 CR O D. R12 000 CR
Problem Solving : a. Gulane, Tormis and Sailadin decided to Liquidate their partnership in June 30, 2018. The partners shared profits and losses in the ratio 2:2:1 respectively. The firms post closing trial balance follows: Gulane, Tormis and Sailadin Post Closing Trial Balance June 30, 2018 Account Name Debit Credit P 419,170 Cash Merchandise Inventory Other Assets Accounts Payable Gulane Capital Tormis Capital Sailadin, Capital 612,300 472,680 P 131,350 561,600 436.800 374,400 1.504,150 1.504.150 The merchandise inventory and the other assets were sold for P 582,800 and P 550,900 respectively. Required : Prepare the Liquidation journal entries.
QUESTION 31. Frame and French are in partnership sharing profits and losses in the ratio 3/5:2/5, respectively. The following is their trial balance as at 30 September 2015. Dr Cr TZS TZS Buildings (cost TZS 210,000) 160,000 Fixtures at cost 8,200 Provision for depreciation: Fixtures 4,200 Debtors 61,400 Creditors 26,590 Cash at bank 6,130 Stock at 30 September 2014 62,740 Sales 363,111 Purchases 210,000 Carriage outwards 3,410 Discounts allowed 620 Loan interest: P Prince 3,900 Office expenses 4,760 Salaries and wages 57,809 Bad debts 1,632 Provision for doubtful debts 1,400 Loan from P Prince 65,000 Capitals: Frame 100,000 French 75,000 Current accounts: Frame 4,100 French 1,200 Drawings: Frame 31,800 French 28,200 640,601 640,601 Avitus Dominick: Msc Finance and Investment, CPA (T ) & BAC (0714-336097)
• On September 13, 2016, AA and BB decided to combine their assets and form a partnership. The partnership is to take over the business assets and assume the business liabilities; and capitals are to be based on net assets transferred after the following adjustments: 1. BB's inventory is to be valued at P140,000. 2. A5% allowance for uncollectible accounts is to be established on the accounts receivable of each party. 3. Accrued liabilities of P8,000 are to be recognized in AA's books. The statements of financial position on September 13 before adjustments are given below. AA BB Cash P75.000 P45.000 Accounts Receivable 180,000 150,000 Inventory 160,000 120,000 Property and Equipment 100,000 120,000 Accumulated Depreciation (45000) (15.000) 420,000 Accounts Payable 138,000 200,000 Capital 332.000 320 000 420.000 • Required: 1. Prepare the entries to adjust and close books of AA and BB. 2. Prepare the opening entries in the books of the partnership. 3. Prepare the statement of financial…
Item No. 22 is based on the following information: sand on IS 03 Q5 2011 mat After operating for eight years, the books of the partnership of Jack and Jill showed the following balances: P 260,000 Net Assets Jack Capital- P 170,000 90,000 Jill Capital Total Capital -- P 260,000 22. If liquidation takes place at this point and the assets were sold at carrying amounts, the cash settlement between the partners would be: a. Jack will receive P 130,000 and Jill will receive P 130,000. b. Jack will receive P 170,000 and Jill will receive P 90,000. c. Jack will receive P 180,000 and Jill will receive P 80,000. d. Jack will receive P 195,000 and Jill will receive P 65,000. Item No.23 is based on the following information: Mar, Tee, Nee, and Kho, sharing profits in the ratio of 3/21, 4/21, 6/21, and 8/21, respectively, decided to liquidate. Their capital balances on June 30, 200D were as follows: Mar, P 10,000, Tee, P 250,000, Nee, P 250,000, and Kho, P 90,000. The noncash assets were converted…