On January 1, 200D, Bamby and Candy invited Dandy and Ely to join them in their business. On this date, their capital balances were P 80,000 for Bamby and P 20,000 for Candy. The profit and loss sharing ratio of Bamby and Candy is proportionate to their capital balances. Dandy bought 40% of the capital and earnings of Bamby for P 40,000. Ely invested P 90,000 for a 50% interest in the capital and earnings of the new partnership. The new capital was agreed at P 200,000. 4.11 REQUIRED: a. Entry to record the admission of the new partners. b. What is the new profit and loss sharing ratio?

On January 1, 200D, Bamby and Candy invited Dandy and Ely to join them in their business. On this date, their capital balances were P 80,000 for Bamby and P 20,000 for Candy. The profit and loss sharing ratio of Bamby and Candy is proportionate to their capital balances. Dandy bought 40% of the capital and earnings of Bamby for P 40,000. Ely invested P 90,000 for a 50% interest in the capital and earnings of the new partnership. The new capital was agreed at P 200,000. 4.11 REQUIRED: a. Entry to record the admission of the new partners. b. What is the new profit and loss sharing ratio?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

2. Rene, Michael, and Kevin are partners in an accounting firm. Their capital accountbalance at year-end were Rene, P90,000; Michael, P120,000; and Kevin,P160,000. They share profit and losses on a 4:4:2 ratio after considering thefollowing terms: a. Kevin is to receive a bonus of 10% of net income. b. Interest of 5% shall be paid on partner’s capital. c. Salaries of P8,000 and P10,000 shall be paid to partners Rene and Kevinrespectively. Assuming a net income of P84,000 for the year. REQUIRED: Prepare the following:A. Profit or Loss Distribution TableB. Corresponding JOURNAL ENTRY to distribute profit or loss
The partners of Dan and Ken are engaged in trading. Dan's original capital was P40,000 and Ken 's was P60,000. They agreed to share profits and losses as follows: Dan Ken Php28,000 10% 30% Salaries Interest on original capital Balance Php40,000 10% 70% а. Р44,600 b. Р46,400 If the profits for the year were P120,000, what share of the profits would Dan receive? c. P57,400 d. P75,600 а. Р2,600 b. (Р22,600) [f the losses for the year were P20,000, what share of the loss would Ken receive? c. (P2,600) d. P5,200
The partners of Dan and Ken are engaged in trading. Dan's original capital was P40,000 and Ken 's was P60,000. They agreed to share profits and losses as follows: Dan Ken Php28,000 10% Php40,000 10% 70% Salaries Interest on original capital Balance 30% n7 - 15. If the profits for the year were P120,000, what share of the profits would Dan receive? а. Р4,600 b. P46,400 с. Р57,400 d. P75,600
A, B, C carry on business sharing the profits in the ratio of 2/3, 1/3, 5/6 respectively. Capitals as on 1-1-2021 are A OMR 50,000, B OMR 45,000 and C OMR 30,000. On 31-10-2021 B died and his executors claim the profit. Calculate B's share of profits till the date of death on the basis of average profits of the preceding 4 years. The annual profit or loss figures of preceding five years were: 15,000, 2 - 4,000 Loss, 3- 3,000 (loss), 4-28,000, 5- 18,000. 1
d. 6. Partners Manalo and Capuno receive an interest allowance of P100,000 and P150,000, respectively, and divide the remaining profits and losses in a 3:1 ratio. If the company sustained a loss of P110,000 during the year, what is the effect on Manalo's capital? a. P82,500 decrease b. P120,000 decrease C. P170,000 decrease d. P105,000 decrease
Sherry and Jonnie Allocate 2/3 of the profits and losses to Sherry and 1/3 to Jonnie. If the Net Income of the firm is $30,000, calculate the share of Jonnie's Net Income A $ 10,000.00 B $ 20,000.00 C $ 25,000.00 D $ 30,000.00
7. A, B, and C are partners in an accounting firm. Their capital account balances at the year-end were A P120,000; B P140,000; C P80,000. They share profits and losses on a 3:3:4 ratio, after the following special terms: Interest of 10% shall be paid on that portion of a partner's capital in excess of P100,000. Quarterly salaries of P5,000, P5,000 and P6,000 shall be paid to partners A, B, and C, respectively. Partner C is to receive a bonus of 10% of net income after salaries, interest and bonus. Assuming a net income of P60,000 for the year, the total profit share of partner C was:
The partners of Dan and Ken are engaged in trading. Dan’s original capital was P40,000 and Ken ‘s was P60,000. They agreed to share profits and losses as follows: Dan Ken Salaries Php28,000 Php40,000 Interest on original capital 10% 10% Balance 30% 70% _______ If the losses for the year were P20,000, what share of the loss would Ken receive? a.P2,600 c. ( P2,600) b.(P22,600) d. P5,200
Distribution of Profits and Losses: 3. Bunag, Belen, and Bustos are partners in an accounting firm. Their capital account balances at year-end were P180,000, P220,000, and P100,000, respectively. They share profits and losses on a 4:4:2, ratio respectively, after considering the following terms: a. Bustos is to receive a bonus of 10% of profit after deducting bonus b. Interest of 10% shall be paid on that portion of a partner's capital in excess of P200,000. c. Salaries of P20,000 and P24,000 shall be paid to partners Bunag and Bustos, respectively. Assuming a profit of P220,000 for the year. REQUIRED: Prepare the following: A. Profit or Loss Distribution Table B. Corresponding JOURNAL ENTRY to distribute profit or loss
A, B, and C are partners in an accounting firm. Their capital account balances at the year-end were A P120,000; B P140,000; C P80,000. They share profits and losses on a 3:3:4 ratio, after the following special terms: o Interest of 10% shall be paid on that portion of a partner's capital in excess of P100,000. • Quarterly salaries of P5,000, P5,000 and P6,000 shall be paid to partners A, B, and C, respectively. • Partner C is to receive a bonus of 10% of net income after salaries, interest and bonus. Assuming a net income of P60,000 for the year, the total profit share of partner C was:
Partners De Guzman and Tugade receive a salary allowance of P30,000 and P70,000, respectively, and share the remainder equally. If the company earned P40,000 during the period, what is the effect on Tugade’s capital? a.P30,000 decrease b.P40,000 increasec. c.P50,000 increased. d.P90,000 increase
4) Separis is given a bonus of 20% before profit and salaries of P50,000. In addition, he receives 3-14 Glenn Separis and Felinita Barroga are partners of Comval Supermarket. Their respective ledger of capital balances are shown below: Barroga, Capital Separis, Capital Nov. 1 P50,000 Jan. 1 P400,000 Sept. 1 P60,000 Jan. 1 May 1 P 300,000 40,000 Sept. 1 50,000 For each of the following independent profit and ioss agreement cases, prepare schedule to distribute profit: 1) Salaries are provided to Separis of P50,000 and P30,000 to Barroga. Separis receives a bonus of 5% of profit after bonus. Interest of 15% based on ending capital balances and any remainder will be shared on the ratio 2:3. Profit for distribution was P450,000. 2) Separis receives a bonus of 20% of profit after bonus and salaries. Salaries are P60,000 to Separis and P80,000 to Barroga. Interest of 10% based on ending capital balances and any remainder will be based on arbitrary ratio of 4:3. Profit for distribution was…