In a USA Company capital balances are M $40,000 and H $50,000. The partners share income equally. K is admitted to the firm with a 40% interest by an investment of cash of $50,000. Journalize the admission of Kosko
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- In a USA Company capital balances are M $40,000 and H $50,000. The partners share income equally. K is admitted to the firm with a 40% interest by an investment of cash of $50,000. Journalize the admission of Kosko
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- Q7- In Shaksy Co., capital balances are Bilal $60,000 and Imran $75,000. The partners share income equally. Ubaid is admitted to the firm with a 40% interest by an investment of cash of $65,000. Journalize the admission of Ubaid. CantinnA & B are partners sharing profits 60% and 40% respectively. On July 1 their interest in the firm are as follows: A. P 23 000; B. P 18 000; C is admitted as a partner upon the investment of P 16 000. Required: Record the investment by C in journal form, assuming: The new partner is given credit for the actual investment made. The new partner is given 1/3 interest, a bonus being contributed by the old partners. The new partner is given a ¼ interest, a bonus being allowed to the old partners.Required: 3. Prepare journal entry to record Pedro’s admission. 4. During the first year of operations, the partnership earned P650,000. After Pedro’s admission, the profitand loss sharing ratio is 40:40:20 for Juan, Pablo, and Pedro, respectively, based on capital credits.Drawings were made in these amounts: Juan, P100,000; Pablo, P130,000; Pedro – P56,000. What isthe capital balance of Pedro after the first year?
- Partners R and S receive a salary allowance of P3,000 and P7,000, respectively, and share the remainder equally. If the company earned P4,000 during the period, the entry to close the income or loss into their capital accounts is: a. Income Summary R, Capital S, Capital b. Income Summary S, Capital c. Income Summary R, Capital S, Capital d. Income Summary R, Capital S, Capital Ο Ο Ο Ο O A O D 10,000 4,000 14,000 6,000 3,000 7,000 4,000 7,000 7,000 3,000 3,000B. Doy, Rey, May and Fay are partners with capitals of P 22,000, P 20,600, P 27,400 and P 18,000 respectively. Doy has a loan balance of P 4,000. Profits and losses are shared 40%; 30%; 20%; 10% by Doy, Rey, May and Fay respectively. Assuming assets were sold and liabilities paid and the balance of cash showed P 24,000. Prepare a schedule showing how the P 24,000 will be distributed to the partners.(c) On December 31, the capital balances and income ratios in Bismillah Company are as follows. Capital Balance Tk. 100,000 80,000 50,000 Income Ratio 50% 30% 20% Partner Abu Bakar Umar Usman Instructions (1) Journalize the withdrawal of Usman under each of the following assumptions. (i) Each of the continuing partners agrees to pay Tk. 30,000 in cash from personal funds to purchase Usman's ownership equity. Each receives 50% of Usman's equity. (ii) Umar agrees to purchase Usman's ownership interest for Tk. 35,000 cash. (iii) Usman is paid Tk. 60,000 from partnership assets, which includes a bonus to the retiring partner. (iv) Usman is paid Tk. 42,000 from partnership assets, and bonuses to the remaining partners are recognized.
- (c) On December 31, the capital balances and income ratios in Bismillah Company are as follows. Capital Balance Tk. 100,000 80,000 50,000 Partner Abu Bakar Umar Income Ratio 50% 30% Usman 20% Instructions (1) Journalize the withdrawal of Usman under each of the following assumptions. (i) Each of the continuing partners agrees to pay Tk. 30,000 in cash from personal funds to purchase Usman's ownership equity. Each receives 50% of Usman’s equity. (ii) Umar agrees to purchase Usman’s ownership interest for Tk. 35,000 cash. (iii) Usman is paid Tk. 60,000 from partnership assets, which includes a bonus to the retiring partner. (iv) Usman is paid Tk. 42,000 from partnership assets, and bonuses to the remaining partners are recognized. (2) If Umar's capital balance after Posada's withdrawal is Tk. 100,600, what were (1) the total bonus to the remaining partners and (2) the cash paid by the partnership to Posada?Jack, Jill, Dick and Jane are partners with capitals of P 22,000, P 20,600, P 27,400 and P 18,000 respectively. Jack has a loan balance of P 4,000. Profits and losses are shared 40%; 30%; 20%; 10% by Jack, Jill, Dick and Jane respectively. Assuming assets were sold and liabilities paid and the balance of cash showed P 24,000. Prepare a schedule showing how the P 24,000 will be distributed to the partners.C.Scenario B: Partners A, B, and C operate a business with profit sharing agreement ratios of 5: 3:2, and capital balances of $300,000, $200,000, and $100,000 respectively. The total income for the year is $180,000. Each partner receives a fixed salary of $50, 000, and they are entitled to earn 10% interest on their capital balances. Calculate the total income allocated to Partner
- 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?Marie admits nelly as a partner in business. Just before the partnership's formation, Marie books showed the following Cash 2,600 Accounts receivable 12,000 Merchandise inventory 18,000 Accounts payable 6,200 Mark, Capital 26,400 It was agreed that, for purposes of establishing Marie investment in the firm, the following adjustments shall be reflected: . Allowance for bad debts of 2% should be set up. • Merchandise inventory should be valued at P20,200. • Prepaid expenses of P350 and accrued expenses of P400 should be recognized. Using the same information in no. 2. If nelly contributed an equipment with carrying value of P4,000 and fair value of P4.500, how much cash was contributed for a one-fifth interest in the partnership?A, B and C share profits and losses in the ratio of 3:2:1. C is to receive a salary of K30, 000 as managing partner, and interest at the rate of 15% p. a is to be charged on drawings. Further, Interest to be earned by partners on their capital contributed. The following are the results of the profits and losses appropriated for the current year. Net profit K200, 0000 Salary K30, 000 Interest on drawings A K10, 000 B K8, 000 C K7, 000 Interests on capital A K20, 000 B K15, 000 C K15, 000 You are required to calculated the partners share of taxable income for tax purposes.
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