2100EXERCISES1. E,F and G are partners sharing profits in the ratio of 5:3:2 respec-tively. On 1st January 2002 'F' wanted to retire. On account of thisthey decided to revalue assets and liabilities as below:a) Appreciate Premises by 18000b) Depreciate stock by 1000 Furniture by 500 andMachinery by 2300c) Provide for an outstanding liability for 200Give necessary entries and Prepare revaluation account(M.S. University 2004)(Ans: Revaluation Profit 14000 (7000+4200+2800))2. C,D and E were partners of a firm sharing profit and losses in theratio of 7:6:5 D wished to retire and they decided to revalue theassets and liabilities as given below(i) To bring into books an unrecorded investment 3000(ii) To write off 1000 from Creditors as it was no longer a liability(iii) To write down machinery by 6000 and stock by 3400Prepare Revaluation Account(Ans: Revaluation loss 5400)Ramu, Seenu, Mathu are partners sharing profits and loss in 3:2:1Seenu decided to retire. The firms' goodwill is valuerthe entries under the condition0, Pass(i) Goodwill is raised in the books(ii) Seenu's share in the goodwill is gamhu'sShot on Y11Vivo Al cameraUniv2001)

E,F and G are partners sharing profits in the ratio of 5:3:2 respec- tively. On 1st January 2002 F' wanted to retire. On account of this they decided to revalue assets and liabilities as below: a) Appreciate Premises by 18000 b) Depreciate stock by 1000 Furniture by 500 and Machinery by 2300 c) Provide for an outstanding liability for 200 Give necessary entries and Prepare revaluation account (M.S. University 2004) (Ans: Revaluation Profit 14000 (7000+4200+2800))

E,F and G are partners sharing profits in the ratio of 5:3:2 respec- tively. On 1st January 2002 F' wanted to retire. On account of this they decided to revalue assets and liabilities as below: a) Appreciate Premises by 18000 b) Depreciate stock by 1000 Furniture by 500 and Machinery by 2300 c) Provide for an outstanding liability for 200 Give necessary entries and Prepare revaluation account (M.S. University 2004) (Ans: Revaluation Profit 14000 (7000+4200+2800))

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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The following information was obtained from the records of Alben Traders, a partnership business with Albert and Bennie as partners, after the net profit of /R546 000 was appropriated between the partners: Partners' salaries R480 000; Interest on drawings R6 000; Total share of the remaining loss R48 000. Which of the following reflects the value of the interest on capital? O A. R108 000 OB. R24 000 O C. R120 000 O D. R972 000
Illustration 5- X, Y and Z were partners sharing profits in the ratio of 3:2:1. Y retires, X and Z have agreed that the capital of the new firm will be fixed at $ 2,00,000 in the profit sharing ratio. The Capital Accounts of X and Z shows a balance of $ 1,67,500 and $ 45,000 respectively on the date of retirement after making all the adjustments. Show the adjustment of Capital Account if: (a) Adjustment to be made through cash, i.e. excess/deficit amount may be paid off or brought in by the remaining partners or (b) Adjustment of Capital is to be made by opening Current Accounts.
M, N and O are partners sharing profit and losses in the ratio 2:1:1. N died on 1st Jun 2020. The sales from 1st January 2020 to 1st Jun 2020 was OMR 90,000. Sales for 2019 OMR 120,000 Profit for 2019 was OMR 28,000. Calculate N's share of profit on the basis of turnover. a. None of the options b. OMR 20,997.00 c. OMR 5,249.25 d. OMR 26,246.25
M, N and O are partners sharing profits in the ratio of 2: 2: 2. N dies on 30th Jun 2020 due to ill health. The company profits for the last 3 years was OMR 20,000, OMR 20,000 and OMR 20,000. Calculate the profit share of N? O a. None of the options are correct O b. OMR 3333.33 O c. OMR 20,000 d. OMR 10,000
A, B and C are partners sharing profits and losses in the ratio of 3 : 2 :1 respectively. With effect from 1.4.2015 they decided to share future profits equally. For this purpose the assets and liabilities were revalued as under : Particulars Old Values ($) Revised Values ($) 30,000 54,000 24,500 14,70,000 50,800 Furniture 28,000 Computers Land and Buildings Machinery Sundry Creditors 12,90,000 46,500 34,870 30,860 Prepare Revaluation Account and give necessary journal entries for recording the above changes in assets and liabilities.
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John and Peter are in partnership sharing profits and losses in the ratio 3/5: 2/5, respectively.The following is their trial balance as of 31 December 2007.Dr Cr$ $Buildings (cost $105,000) 80,000Fixtures at cost 4,100Provision for depreciation: Fixtures 2,100Debtors 30,700Creditors 13,295Cash at bank 3,065Stock at 01 January 2008 31,370Sales 181,555.50Purchases 105,000Carriage outwards 1,705Discounts allowed 310Loan interest: M. Money 1,950Office expenses 2,380Salaries and wages 28,904.50Bad debts 816Provision for doubtful debts 700Loan from M. Money 32,500Capitals: Shoes 50,000Socks 37,500Current accounts: Shoes 2,050Socks 600Drawings: Shoes 15900Book 14,100320,300.5 320,300.5i. Stock, 31 December 2008, $35,105ii. Expenses to be accrued: Office Expenses $107.50; Wages $360iii. Depreciate fixtures 15 percent on reducing balance basis, buildings $2,500iv. Reduce provision for doubtful debts to $625v. Partnership salary: $15,000 to Shoes. Not yet enteredvi. Interest on drawings:…
1. The balance sheet of the RJ, SJ and TJ partnership, just before liquidation, is as follows: Assets P120,000 Liabilities 50,000 10,000 RJ, loan RJ, capital SJ, capital TJ, capital Total 22,000 30,000 8,000 P120,000 RJ, SJ and TJ share profits 5:3:2 respectively. Certain assets are sold for P80,000. Creditors are paid in full, partners are paid P20,000, and cash withheld for future expenses P10,000. How much cash is to be distributed to the partners? RJ SJ TJ P13,000 P14,250 a. P7,000 b. P5,750 с. Р5,250 d. P7,550 PO PO P14,750 P12,450 PO PO е. None of the above
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28. 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 BB upon formation of the partnership?
5.1 Al and Tantay are partners sharing profits equally. The condensedbalance sheet of their partnership prior to liquidation is shownbelow: Assets Liabilities and EquityCash P1,900 Accounts Payable P 27,200Accounts Receivable 7,200 Al Capital 15,000Merchandise Inventory 16,400 Tantay Capital 5,000Equipment 21,700 P 47,200 P 47,200They decided to liquidate and the assets realized the followingamounts in cash:Accounts Receivable P 4,200Merchandise 11,200Equipment 16,000REQUIRED: Prepare working paper for the Statement of Liquidation using the lump sum liquidation method and give all the corresponding journal entries…
Accounting A, B and C had capital balance of : A,$150,000; B, 120,000 and C, 200,000, profit sharing ratio: 1:2:3. A decides to retire. A is paid 180,000 and goodwill of all partners is recorded (problem 5 related ) true or false in the journal entry of A’s retirement, the goodwill account will be debited with $ 60,000. (problem 5 related) Assume that B acquired C’s capital in a personal transaction and paid him $ 180,000. After this transaction the balance in B’s Capital Account will be ?