| balances: A (60%) P100,000; B (30%) P60,000; and C (10%) P20,000.A, B and C are partners with the following P/L ratio and capital|Case 3: D invests P70,000 cash for a 20% interest in thepartnership's net assets and profits. Provide the journal entry anddetermine the capital balances and P/L ratio of the partners afterD's admission.

1. Calculation of Goodwill of the firm Share of Partner D = 20% or 1/5 D's capital = 70,000 Total…

Answered: | balances: A (60%) P100,000; B (30%)…

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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balances: A (60%) P100,000; B (30%) P60,000; and C (10%) P20,000. Case 1: D purchases one-half of A's capital interest for P70,000. A, B and C are partners with the following P/L ratio and capital balances: A (60%) P100,000; B (30%) P60,000; and C (10%) P20.00 Provide the journal entry under the 'book value' method.
A, B and C are partners with the following P/L ratio and capital balances: A (60%) P100,000; B(30%) P60,000; and C (10%) P20,000. Case 1: D purchases one-half of A’s capital interest or P70,000. Provide the journal entry under the book value method.
Partners Matero and Malaya each have a P200,000 capital balance and share profits and losses in a 3:2 ratio, respectively. Cash equals P100,000, non-cash assets equal P600,000, and liabilities equal P300,000. 1.If the non-cash assets are sold for P350,000, then Matero’s capital account will a. decrease by 105,000 b. decrease by 150,000 c. increase by 210,000 d. decrease by 210,000 2. If the non-cash assets are sold for P250,000, and each partner is personally insolvent, Malaya eventually will receive cash of a. 100,000 b. 0 c. 50,000 d. 60,000
A, B, and C of ABC Partnership have beginning capital balances of P500,000, P300,000, and P200,000 respectively. The partnership has the following information: Sales (60% credit; 40% cash) amounting to P1,200,000, Cost of Goods Sold, P920,000, and Total operating expenses is P218,000. In their profit-sharing arrangement: . Salaries of P15,000, P20,000, and P25,000 shall be given to each partner respectively . Interest at 3% of the beginning capital balances would be allowed in profit distribution. . Any remaining amount will be divided among each partner at 3:1:1. Compute the share of C in the net profit (loss). Encode as a negative amount if the answer is negative.
According to Profil and Loss Account, the net profit for the year is OMR250,000. The total interest on partner's capital is OMR BOLO00 and interest on partner's drawings is OMR 30.000 The net profit as per Profit and Loss Appropriation Account will be OMR 110.000 (Prolit) OMR 200,000(Loss) OMR 200,000(Protit) OMR 200000 (Profit)
Partners Biore and Selishana each have P450,000 capital balance and share profits and losses in a 3:2 ratio. Cash equals P150,000, non-cash assets equal P1,500,000 and liabilities equal P750,000. If non-cash assets are sold for P1,000,000, the change in Selishana's capital account will be:
1. Jag, Lee and Bench are partners having the following capital balances of P 11,200, P13,000 and P5,800respectively. Profits and losses are shared 4:2:1. How much is the total loss on realization?Required to answer. Single choice. a. P2,100 b. P27,900 c. P30,000 d. P1,200
The following is the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation A/c, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. 375000 x Capital A/c 112500 Y Capital A/c 50000 Sundry creditors 100000 Sales (net) 50000 Discount Land and Buildings Plant and Machinery 125000 75000 Wages 62500 Opening Stock of Finished Goods 812500 Opening Stock of Raw material Opening Stock of Work in Progress Sundry debtors 6250 45000 Provision for bad debts 3750 125000 Commission 3750 Y's Loan A/c 2250 25000 Carriage inwards 75000 Carriage outwards Factory Expenses 18750 Royalties 3750 Purchase of Raw material (net) 187500 16250 7250 10000 Factory rent & taxes Discount Office rent Insurance 5000 3750 18750 30000 20500 1185000 The following additional information is to be taken into consideration: Bad debts Office Expenses Salaries of works manager Cash at bank…
2. Hailley and Indie formed a partnership, with capital contributions, as follows: Hailley- Cash of P1,350,000 Indie -Equipment with an agreed value of P 1,500,000 Give the journal entry. Description P.R. Debit Credit
Moose, Booze and Goose are partners with capital balances of P 320,000, P 450,000 and P 520,000 respectively with profit and loss sharing ratio of 2:3:5 respectively. The firm owes Booze P 20,000. Upon liquidation, P 390,000 is available for distribution to the partners. What amount of cash will Moose receive? a. P78,000 b. P136,000 c. P258,000 d. P320,000 Please provide a good accounting form for the solution. Thank you!
Moose, Booze and Goose are partners with capital balances of P 320,000, P 450,000 and P 520,000 respectively with profit and loss sharing ratio of 2:3:5 respectively. The firm owes Booze P 20,000. Upon liquidation, P 390,000 is available for distribution to the partners. What amount of cash will Moose receive? a. P78,000 b. P136,000 c. P258,000 d. P320,000
Partners Biore and Selisana each have a P450, 000 capital balance andshare profits and losses in a 3:2 ratio, respectively. Cash equals P150, 000,non-cash assets equal P1, 500, 000, and liabilities equal P750, 000.7. If the non-cash assets are sold for P1, 000, 000, the change in Selisana’scapital account will bea. an increase of P500, 000b. a decrease of P250, 000c. a decrease of P200, 000d. an increase of P400, 000 8. If the non-cash assets are sold for P700, 000 and each partner ispersonally insolvent, upon liquidation Selisana will receive a cash distributionofa. P100, 000b. P50, 000c. P130, 000d. P0

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