Instruction: Prepare the answers and solutions in written form using a clean paper (e.g. Yellow pod, bondpaper, notebook etc.) and submit a snapshot in CANVAS.The balance sheet of A on November 30, 2020 before accepting B as his partner to form AB Partnershipis presented below:Assets:Cash120,000Accounts receivable48,000Less: Allowance for uncollectible accounts3.00045,000Notes receivable60,000Merchandise inventory27,000Equipment72,000Less: Accumulated Depreciation6,00056,000Total assets318,000Liabilities and CapitalAccounts payable12,000Notes payable60,000A, Capital246,000Total liabilities and capital318,000It is agreed that for the purpose of establishing A's interest the following adjustments shall be made:a.The accounts receivable is estimated to be 90% realizable.b. Interest at 8% of notes receivable dated March 1, 2019 is to be accrued.c. Merchandise inventory is to be valued at P21,000.d. The equipment is under-depreciated by P4,800.e. Prepaid expenses of P2,400 and accrued expenses of P7,200 are to be recognized.B is to invest cash to obtain a one-third interest in the partnership.Required:1. Prepare the following entries in the books of A, as to:a. Adjustmentsb. Closingc. Investments2. Prepare the balance sheet after formation of the partnership

The proprietorship firm is a form of business under which one person carry out the business activity…

Answered: The balance sheet of A on November 30,…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter23: Accounting For Partnerships

Section23.3: Dissolving A Partnership

Problem 1WT

See similar textbooks

Similar questions

The following information relates to partner for the year ended 29 February 2020: Current account credit balance on 29 February 2020 20 000 Profit share 50 000 Salaries 180 000 Interest on capital 24 000 Drawings 220 000 Interest on drawings 2 000 What is the balance in the Current account of the partner on 01 March 2019? OA. R12 000 DR. B. R116 00O DR OC. R52 000 CR D. R12 000 CR S Type here to search
Instruction: Prepare the answers in written form using a clean paper (e.g. Yellow pad, bond paper, notebook etc.) and submit a snapshot in CANVAS. Assume A, B, C and D are partners sharing profits 40%, 20%, 20%, 20%, respectively. On January 1, 2020, they agree to liquidate. A balance sheet prepared on this date is shown as follows: Assets Liabilities and Capital Non- Cash assets P 181,800 Liabilities P 84,000 A, Loan 6,000 D, Loan 3,000 A, Capital 26,400 В, Сapital C, Capital D, Capital 25,800 20,400 16,200 Total P 181,800 P 181,800 Results of liquidation are summarized below: Month Proceeds Book Value Liquidation exp. Cash withheld January P72,000 P90,000 P1,200 P4,800 February 21,600 30,000 1,320 1,800 March 19,200 24,000 1,440 1,200 April 6,000 19,800 4,800 600 May 2,400 18,000 960 Required: Prepare the statement of liquidation and related schedule of safe payment for the month of January to May 2020 and determine payment to partners for every month.
SECTION: PROFESSOR: Problem #14 Admission by Investment of Assets On Jan. 31, 2019, Partners Abad, Ramos and Cammayo had the following loan and capital account balances (after closing entries for Jan.): Loan receivable from Abad P 20,000 dr 60,000 cr Abad payable to Cammayo Abad, Capital Ramos, Capital Cammayo, Capital 30,000 dr 120,000 cr 70,000 cr The partnership's income-sharing ratio was Abad, 50%; Ramos, 20%; and Cammayo, 30%. On Jan. 31, 2019, Gonzales was admitted to the partnership for a 20% interest in total capital of the partnership in exchange for an investment of P40,000 cash. Prior to Gonzales's admission, the existing partners agreed to increase the carrying amount of the partnership's inventories to current fair value, a P60,000 increase. Required: Prepare the journal entries the increase in inventories and the admission of Gonzales.
The following information relates to partner for the year ended 29 February 2020: Current account credit balance on 29 February 2020 20 000 Profit share 50 000 Salaries 180 000 Interest on capital 24 000 Drawings 220 000 Interest on drawings 2 000 What is the balance in the Current account of the partner on 01 March 2019? A. R12 000 DR O B. R116 000 DR OC. R52 000 CR O D. R12 000 CR
Make-up assignment Partnership operations Instruction: Prepare the answers and solution in written form using a clean paper (e.g. Yellow pad, bond paper, notebook etc.) and submit a snapshot in CANVAS. A and B organized AB partnership on 1/1/2020. The following entries were made into their capital accounts during 2019: A Dr Cr 1/1 20,000 4/1 5,000 10/1 5,000 B Dr Cr 1/1 40,000 3/1 10,000 9/1 10,000 11/1 10,000
tnership s. Is th Chapter 2-Nature and Formation of a Partnership EXERCISES Exercise 2-1 (Cash and Non-cash Contributions) Give the entry to record the investment of Alonzo into the partnership under each of the following independent assumptions: a. ers int b. conter c. How d. does Cash of P400,000. 63 Accounts receivable of P500,000 with an allowance for uncollectible accounts of P50,000. Inventories that cost P300,000 using the moving average method accepted by the partnership at its FIFO value of 80% of average cost. Equipment that cost P900,000 with a book value of P300,000 after four years of use without salvage value. The equipment should have been depreciated over a 10-year useful life. Exercise 2-2 (Cash and Net Asset Contributions)
After the formation of RGM Partnership on July 4, 2023, the balances in the general ledger accounts reflect the following balances: Debit Credit Cash P 205,000 Accounts Receivable 95, 000 Allowance for Doubtful Accounts P 10,000 Office Supplies 12,000 Office Equipment 320,000 Furniture and Fixture 140,000 Rosario, Capital 320,000 Guadalupe, Capital 225, 000 Maria, Capital 217,000 Total P 772,000 P 772,000 Rosario invested the office equipment, Guadalupe invested accounts receivable and Furniture and Fixtures, and Maria invested cash and office supplies. Compute the total assets of the partnership upon formation.
The partnership of Benedict, Joshua and Constantine have asked you to assist it in winding up the affairs of the business. You compile the following information: a) The trial balance of the partnership on June 30, 2020 is: Debit Credit Cash 6,000 Accounts Receivable (net) 22,000 Inventory 14,000 Plant and Equipment (net) 99,000 Loan to Benedict 12,000 Loan to Constantine 7,500 Accounts Payable 17,000 Benedict, Capital 67,000 Joshua, Capital 45,000 Constatine, Capital 31,500 Total…
Balances in the ledger at 30 June 2021 R Capital : Tas Capital : Naz 407 000 363 000 Current account: Tas credit balance at 1 July 2020 8 052 Current account: Naz: debit balance at 1 July 2020 2 640 Drawings : Tas Drawings : Naz Profit for the year 88 000 140 800 438 636 Additional Information: The partnership agreement provides for the following that needs to be taken into account: 1. Partners are entitled to salaries as follows: Tas - R8 000 per month, Naz - R10 000 per month. 2. Interest on capital accounts are allowed at 12% per year on each partners capital on a pro-rata basis. Note the following that on 1 January 2021: Tas decreased her capital account by R27 000; and Naz increase her capital account by R17 000. 3. Interest at 10% per year is applicable to the opening balance of each partner's current account. 4. Naz is entitled to an annual bonus equal to 2% of the profit for the year before any appropriation from the profit for the year. 5. The remaining profits or losses are…
Prepare the following accounts for the month of September 2021. a.Dissolution (Realisation) account. b.Partners’ Capital accounts, in columnar form. c. The partnership Bank account.
The current account of a partner has been written up as follows. Current account Interest on capital £2,200 Balance B/d £625 Salary £1,225 Drawings £6,350 Balance c/d £12,800 Profit share £9,250 What is the correct balance carried down when the errors are corrected?
On December 31, 2020, the accounting records of the Friends Partnership included the following information: Raflyn, drawing (debit balance) P 120,000 Jane, drawing (debit balance) Pablo, loan Raflyn, capital Jane, capital Pablo, capital 45,000 150,000 615,000 502,500 540,000 Total assets amounted to P2,392,500, including P262,500 cash, and liabilities totaled P750,000. The partnership was liquidated on December 31, 2020, and Jane received P416,250 cash pursuant to the liquidation. Raflyn, Jane, and Pablo share net income and losses in a 5:3:2 ratio, respectively. Compute for the total loss on realization.

SEE MORE QUESTIONS

Recommended textbooks for you

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

SEE MORE TEXTBOOKS