FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Lalit, Pankaj and Rahul are partners sharing profits in the ratio of 4 : 3 : 3. After all adjustments, on Lalit’s retirement with respect to general reserve,
brought by Pankaj and Rahul and record necessary
After Lalit’s retirement, the new profit sharing ratio between Pankaj and Rahul is 3 : 3, i.e. 1 : 1.
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- Moe, Larry and Curley are partners in a partnership. The partners have always shared losses and Gains in a 3: 2: 1 ratio and on the date of Curley's retirement they have the following equities in the partnership: Moe 24,000 Larry : 30,000 Curley 18,000 Using Today's Date Give in General Journal Form the entry showing the retirement of Curley under the following unrelated assumptions: 1. Curley retires taking $18,000 of cash with him for his equity 2. Curley retires taking 20,000 of partnership cash with himarrow_forwardHewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $28,000 and $18,000, respectively. After all noncash assets are sold and all Iliabilities are paid, there is a cash balance of $35,000.arrow_forwardThe partnership of Michelle, Amal, and Maureen has done well. The three partners have shared profits and losses in a 1:3 ratio, with capital balances of $60,000 each. Maureen wants to retire and withdraw. Prepare a schedule showing how the cost should be divided if Amal and Michelle decide to pay Maureen $70,000 for retirement of her capital account and the new agreement will share profits and losses 50:50.arrow_forward
- Maria and Carlos formed a partnership, investing $400,000 and $300,000, respectively. Determine their participation in the year's net income of $345,000 under each of the following independent assumptions: (a) No agreement concerning division of net income (equally); (b) Divided in the ratio of original capital investment;arrow_forwardTaylor and Tanner formed a partnership. Taylor contributed $50,000 in cash. Tanner contributed land and buildings he purchased for $50,000 some time ago. His tax basis in the property is now $30,000, although it was recently appraised for $70,000. There is a $15,000 mortgage attached to the building that the partnership will assume. What is the amount of Tanner’s capital account after his contribution? a. $50,000 b. $30,000 c. $35,000 d. $55,000arrow_forward
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