Fill in the blanks: Problem 4: Sampras and Nadal divide partnership profits and losses on the basis of average capital balances. 1. Sampras had invested P300,000 on January 02, 2019 and P120,000 on April 30, 2019 2. Nadal invested P400,000 on January 02, but withdrew P40,000 on July 01, 2019. Determine the following: 1. The average capital of Sampras is and the average capital of Nadal is 2. Distribute the profit of P150,000 for the first year of 2019 based on the average capital: a. Sampras share on profit is b. Nadal share on profit is
Q: The capital accounts of the Soriano and Montelibano partnership on Sept. 30,2020 were: Soriano,…
A: A partnership firm has two or more owners who shares the profit and loss in an agreed ratio. The…
Q: On December 1, 2022, J and P formed a partnership. J invested land with a cost of P250,000. P…
A: Partnership Capital: A partnership capital account is a separate account that reflects the equity in…
Q: partnership
A: Amount Should be realized in Profit Sharing Ratio i.e; 5:3:2 Total Cash = 444000 + 375000 - 165000 =…
Q: The partner’s capital (profit and loss ratio in parentheses) of Bob, Dex, Larry, and Rey on February…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Lorna, Aida, and Fe decided to liquidate their partnership on August 2pm 31, 2020. They have been…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: If profit was 800,000 during 2018, how much should each partner receive?
A: We know that a partnership firm is funded by capital invested by partners. Hence any profit earned…
Q: The balance sheet for the partnership of Nina, Pinta, and Santa Maria at January 1, 2014 follows.…
A: Profit on revaluation of assets = Fair value - assets at cost = P540000 - 480000 = P60,000
Q: On May 1, 2022, AA and BB formed a partnership, agreeing to share profits and losses in the ratio of…
A: The capital balance of AA right after the partnership formation will be fair market value of land.…
Q: As of December 31, 2020, the books of ABC partnership showed capital balances of A 60,000; B 30,000…
A: Formula: A share = Balance available for distribution x Sharing ratio.
Q: The condensed balance sheet of the 3M Partnership as of June 30, 2020 with the corresponding profit…
A: Partnership characteristics include: Existence of an agreement Existence of business Sharing of…
Q: n December 1, 2020 Beauty and phull are combining their separate business to form a partnership.…
A: Partnership means where two or more person comes together to do some common business activity and…
Q: On June 30, 2020, the statement of financial position for the partnership of A, B, and C together…
A: Partnership means where two or more person comes together to do some common business activity and…
Q: The following are the capital account balances and profit and loss ratios of the partners in AB…
A: In the given case, C has purchased half of A's Capital from A.
Q: Miguel, Neri, and Orlando are partners whose capital balances and shares in profits as of January 1,…
A: Partnership is a mutual agreement between the two or more individual parties where they decide to…
Q: On January 1, 20xl, A and B, who share profits and losses on a 60:40 ratio, decided to liquidate…
A: Capital Balance of A P12,00,000 Amount received by A P7,68,000 Share of loss of A (P1200000 -…
Q: 1. Calculate the net income of each partner for the year ended 30 June 2021. 2. If Kevin had only…
A: Profit sharing ratio: Daune = 60% , Kevin = 40% Net partnership income = $ 1,20,000 Daune share = $…
Q: Dasal, Kho, Papasa, and Akho are partners sharing earnings in the ratio of 4:5:4:7. The balance of…
A: Partnership is a form of business in which partners agree to share profit and losses as per agreed…
Q: tgage on the land. On June 30, 2023, the partnership reported a net loss of P24,000. The…
A: Journal entry refers to the process of documenting all the financial transactions of a company in…
Q: Ables and Galang divide partnership profits and losses solely on the basis of their average capital…
A: The partnership is a form of business which is operated by two or more persons and distribute the…
Q: On May 1, 2021, Cobb and Mott formed a partnership and agreed to share profits and losses in the…
A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed…
Q: Juan and Pedro decided to combine their resources to form a partnership on June 1, 2022, stipulating…
A: Partnership is a form of business organisation, under which two or more persons will caliberate,…
Q: The capital account balances and profit-and-loss-sharing ratios of the Byd, Box, Dar, and Fus…
A: A journal entry is the recording of financial transactions in books of the business entity. It…
Q: Elisa Diaz and Ma. Concepcion Manalo formed a partnership, investing P330,000 and P110,000,…
A: Partnership: It is a type of business form. Under this business form, two or more individuals…
Q: ians, Capital 80,000 Ephesians, Capital 90,000 Philippians, Capital 70,000 The first cash sale…
A: when there is net realization of assets and payment of liability the residual amount that is left…
Q: Incredible and Joyful are partners who share profit on a 60:40 ratio. At the end of 2021, the…
A: Revaluation of the assets and liabilities and auditing of the past expenses and incomes is a…
Q: KC and Jojo are considering formed a partnership whereby profits will be allocated through the use…
A: A Partnership is a type of business entity where 2 or more persons come together as partners to do…
Q: .On December 31, 2019, A and B have capital balances of P400,000 and P320,000, respectively. On…
A: Partnership means where two or more person comes together to do some common business activity and…
Q: Elisa Diaz and Ma. Concepcion Manalo formed a partnership, investing P330,000 and P110,000,…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: formation. Pamu contributed a parcel of land that cost her P200,000. Kevin contributed P300,000…
A: partnership is : two or more parties in which they to share profit and capital in the aggred ratio…
Q: On December 31, 2020, the Statement of Financial Position of DEL Partnership shows the following…
A: The capital of partners are restructured after admitting a new partners based on the new…
Q: What is the capital balance of B after the retirement of C?
A: Given: Capital A P800,000, Capital B P600,000 Capital C P200,000 Profit or loss ratio of 1:4:5 C…
Q: 19. On January 1, 2019, partners Allan, Ben and Chris, who share profits and losses in the ratio of…
A: On liquidation of the partnership, the amount left after paying for liabilities should be shared…
Q: On January 1, 2021, the partnership of TM, JK and AB, who share profits and losses in the ratio of…
A: At the time of liquidation of the partnership, the cash to be distributed to the partners is equal…
Q: On October 31, 2021, Aaron, Nono and Enok who share earnings 5:3:2, respectively, decided to…
A: Liquidation means where the business of firm is closed down , assets are sold out and liabilities…
Q: On January 1, 2019, Fhebie and Randy formed a partnership, agreeing to share profits and losses of…
A: Partnership: It is a type of business form. Under this business form, two or more individuals…
Q: During 2021, Jungkook and Jimin maintained average capital balances of in their partnership of…
A: A partnership is considered as an agreement between two or more people who come together, for a…
Q: On June 1, 2021, Jungkook and Jimin formed a partnership. Jungkook is to invest assets at fair which…
A: J book and Jim formed a partnership firm with an investment of 60% & 40%. Jungle contributed…
Q: On 1 October 2019, Johann and Wynona, two computer programmers, commenced a partnership. As Johann…
A: THE PARTNERSHIP NET INCOME IS CALCULATED BY SUBTRACTING THE TOTAL EXPENSES FROM TOTAL INCOMES . THE…
Q: On September 2, 2020, Nino, Olan, and Pete formed a partnership investing cash of P945,000,…
A: Solution Liquidation of partnership means to end of the partnership and firm's assets are sold and…
Q: On January 1,2020, Carlo and Jamie formed a partnership with investments of P160,000 and P240,000…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: On May 1, 2022, AA and BB formed a partnership, agreeing to share profits and losses in the ratio of…
A: The amount to be recorded as a partner’s capital will be equal to the fair value of Net Assets…
Q: On December 1, 2022, EE and FF formed a partnership, agreeing to share for profits and losses in the…
A: Partnership: A legal agreement between two or more individual to carry out business entity and share…
Q: Jo, Joy, and Joyce have capital balances of P40,000; P25,000 and P5,000 respectively on December 31,…
A: Joy share is 11,000. Working is as follows: Particular Jo Joy Joyce Total Capital…
Q: As of December 31, 2020, the books of ABC partnership showed capital balances of: A, P60,000; B,…
A: Introduction: Partnership: Its an agreement between two or more partners for forming a business and…
Q: On December 31, 2022, ABC Partnership’s Statement of Financial Positions shows that A, B and C have…
A: A partnership is a form of business where two or more partners carry a business and share the profit…
Q: How much is capital credited to D at the time of formation of the partnership? To input answers,…
A: The non cash assets invested by partners are recorded at fair value in the market instead of book…
Q: On June 11, 2020, A, B, and C form a partnership investing cash of P 15,000, P 13,500, and P 4,200,…
A: A partnership is a formal contract between two or more people to operate and manage a business…
Q: Armani, Bulgari and Chloe decided to liquidate their partnership on August 31, 2020. They have been…
A: Liquidation of Partnership Firm: In the case of a partnership firm, dissolving it implies ceasing to…
Q: Calculate the capital balances of each partner after the admission of Palatino, assuming that…
A: At the time of admission, the adjustment of the partners’ capital shall be done on the basis of the…
Q: Lorna, Aida, and Fe decided to liquidate their partnership on August 2pm 31, 2020. They have been…
A: Non cash assets means the assets other than cash and bank balances. Any amount received more or less…
Step by step
Solved in 2 steps
- Use the following information for numbers 29 and 30. On June 30, 2018, the balance sheet for the partnership of D, E and F, together with their respective profit and loss ratios, is summarized as follows: Assets 300,000 D, Loan 15,000 D, Capital (20%) 70,000 E, Capital (20%) F, Capital (60%) Total Liabilit ies and Capital 65,000 150,000 Total Assets 300,000 300,000 D has decided to retire from the partnership, and by mutual agreement the assets are to be adjusted to their fair values of P260,000 at June 30, 2018. It is agreed that the partnership will pay D, P102,000 cash for his interest exclusive of his loan which is to be repaid in full. After D's retirement, what are the capital balances of each partner? 29. Partner E. 30. Partner F.Problem 1. Alucard and Chou organized their partnership on 01/01/19. The following entries were made into their capital accounts during 2019. Required: If partnership profits for the year equaled P66,000, indicate the allocations between the partners under the following independent profit-sharing allocation conditions: Interest of 10% is allocated on weighted average capital balance and the remainder is divided equally. A salary of P9,000 will be allocated to Chou; 10% interest on ending capital is allocated to the partners; remainder is divided 60/40 to Alucard and Chou, respectively. Salaries are allocated to Alucard and Chou in the amount of P10,000 and P15,000, respectively and the remainder is allocated in the proportion to weighted average capital balances. A bonus of 10% of partnership profits after bonus is credited to Alucard, a salary of P35,000 is allocated to Chou, a P20,000 salary is allocated to Alucard, 10% interest on weighted capital is allocated, and remainder is…On December 31, 2020, the Statement of Financial Position of ABC Partnership provided the following data with profit or loss ratio of 5:1:4: 1,500,000 Noncurrent Assets 2,000,000 Total Liabilities A, Capital В, Сарital С, Сарital Current Assets 500,000 1,100,000 1,200,000 700,000 On January 1, 2021, D is admitted to the partnership by investing P500,000 to the partnership for 10% capital interest. The total agreed capitalization of the new partnership is P3,000,000. 1. What is the capital balance of D after his admission to the partnership?
- 6. On June 30, 2020, the balance sheet for the partnership of Cabe, Danila, and Ellie, together with their respective profit and loss ratios, were as follows: P585,000 29,250 136,500 Assets, at cost Cabe, loan Cabe, capital (20%). Danila, capital (20%) Ellie, capital (60%) 126,750 1. 292,500 P585,000 Total Cabe has decided to retire from the partnership. By mutual agreement, the assets are to be adjusted to their fair value of P702,000 at June 30, 2020. t. was agreed that the partnership would pay Cabe P198,900 cash for Cabe's partnership interest, including Cabe 's loan which is to be repaid in full. No goodwill is to be recorded. After Cabe's retirement, what is the balance of Danila's capital account? a. P118,462.50 b. P126,750 C. P147,712.50 d. P150,150The capital accounts of the partnership of Aguinaldo, Bernardo, and Caraig on June 1, 2020 are presented below with their respective profit and loss ratios: P452,400 1/2 678,600 1/3 312,000 1/6 Aguinaldo Bernardo CaraigPROBLEM G: On December 31, 2019, the statement of financial position of BRY Partnership shows the following data with profit or loss sharing ratio of 2:3:5: Cash P1,500,000 Liabilities to outside creditors В, Сарital R, Capital Y, Capital P2,000,000 1,500,000 1,250,000 750,000 Non-cash asset 4,000,000 On January 1, 2020, the partners decided to wind up the partnership affairs. During January, non-cash assets with book value of P3,000,000 were sold for P2,000,000 and liquidation expenses amounting to P200,000 were paid. 40% of total liabilities were also paid during January. P300,000 cash was withheld during January for future liquidation expenses. 8. What is the amount received by partner R on January 31, 2020? A. 200,000 B. 380,000 C. 500,000 D. 890,000
- The condensed statement of financial position of Ricablanca, Tac-an and Dimalanta partnership as of March 31, 2019 follows: Assets Cash P 28,000 Non-cash Assets 265,000 Total P293,000 Liabilities P 48,000 Ricablanca, Capital 95,000 Tac-an, Capital 80,000 Dimalanta, Capital 70,000 Total P293,000 Profit and loss ratio is 50:25:25, respectively. The partners voted to dissolve the partnership and liquidate by selling assets in installments. P70,000 was realized on the first cash sale of other non-cash assets which has a book value of P150,000.…Problem: Nadine and Lysa formed a partnership on Jan. 01, 2019. Below the details of their capital accounts for 2019: Nadine, Capital Lysa, Capital 1-Jul 200,000 500,000 1-Jan 300,000 300,000 31-Dec 150,000 450,000 On the same year, the partnership generated a profit of P200,000. Required: Determine the Profit Ratio and the share on profits for Nadine and Lysa on the following agreements: A. If agreement is based on Capital Contributions: Nadine Lysa 1 Profit Ratio 4 Share on Profit B. If agreement is based on Average Capital: Nadine Lysa 5 Profit Ratio Share on Profit 2. CO 3.The capital accounts of Scott and Tucker at the end of the fiscal year 2019 are as follows: Scott, Capital January 1 Balance P210,000 Мay 1 Investment 90,000 October 1 Withdrawal Р60,000 Tucker, Capital January 1 Balance P150,000 April 1 Withdrawal P30,000 The partnership profit for the year ended December 31, 2019 was P300,000. Instruction: Prepare schedule of profit allocation and journal entries to record transfer to profit to the capital accounts under each of the following independent assumptions: 1. Profit is divided 60% to Scott and 40% to Tucker. 2. Profit is divided into ratio of capital balances at the beginning of the period. 3. Profit is divided in the ratio of average capital balance. Interest of 8% is allowed on the average capital and the balance of profit is divided equally. 4. Salaries of P60,000 and P48,000 are allowed to Scott and Tucker, respectively, and the balance of the profit is divided in the ratio of capital balances at the end of the period. 5. 6. Scott is…
- Elisa Diaz and Ma. Concepcion Manalo formed a partnership, investing P330,000 and P110,000, respectively. Determine the partners' participation in the 2019 profit of P420,000 under each of the following independent assumptions: a.) No agreement concerning division of profit. b.) Divided in the ratio of original capital investment. c.) Interest at the rate of 8% allowed on original investments and the remainder divided in the ratio of 2:3. d.) Salary allowances of P50,000 and P70,000, respectively, and the balance to be divided equally. e.) Allowance of interest at the rate of 8% on original investments, salary allowances of P50,000 and P70,000, respectively, and the remainder to be divided equally.Elisa Diaz and Ma. Concepcion Manalo formed a partnership, investing P330,000 and P110,000, respectively. Determine the partners' participation in the 2018 profit of P420,000 under each of the following independent assumptions: a. No areement concerning division of profit. B. Divided in the ratio of original capital investment. C. Interest at th rate of 8% allowed on original investments and the remainder divided in the ratio of 2:3 D. Salary allowances of P50,000 and P70,000, respectively, and the balance to be divided equally. E.Allowance of interest at the rate of 8% on original investments, salary allowances of P50,000 and P70,000, respectively, and the remainder to be divided equally.X and Y are partners sharing profits and losses in the ratio of 3 : 2. Their capitalaccounts showed balances of Rs. 1,50,000 and Rs. 2,00,000 respectively on Jan 01, 2019. Show the treatment of interest on capital for the year ending December 31, 2019 in each of the following alternatives:(a) If the partnership deed is silent as to the payment of interest on capital and theprofit for the year is Rs. 50,000. (b) If partnership deed provides for interest on capital @ 8% p.a. and the firmincurred a loss of Rs. 10,000 during the year. (c) If partnership deed provides for interest on capital @ 8% p.a. and the firmearned a profit of Rs. 50,000 during the year. (d) If the partnership deed provides for interest on capital @ 8% p.a. and the firmearned a profit of Rs. 14,000 during the year