a. 234,167b. 236,347c. 324,382d. 341,367 The statement of financial position of the partnership of A and B as of December 31, 20x1 isshown below:Cash33,354Accounts receivable802,426Inventory380,137Land603,000Building428,267Equipment85,134Other assets5,600Total assets2,337,918Accounts payableNotes payableА, саpitalВ, сapital422,590545,000641,976728,352Total liabilities and equity2,337,918A and B share in profits and losses equally.On January 1, 20x2, C informed A and B of his intention to invest in the partnership for a 20%interest. The partners agreed on the following adjustments prior to C's admission:o Accounts receivable of #55,000 should be written-off.o Inventories of P12,200 are obsolete and have no resale value.o The 'Other assets' should be written off.If no bonus is allowed, how much is C's required investment?

Admission of Partner referred to the admission of a new partner or partners into a partnership firm…

Answered: The statement of financial position of…

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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The statement of financial position of the partnership of A and B as of December 31, 20x1 is shown below: Cash 33,354 Accounts receivable 802,426 Inventory Land 380,137 603,000 Building Equipment 428,267 85,134 Other assets 5,600 Total assets 2,337,918 Accounts payable Notes payable 422,590 545,000 641,976 A, capital B, capital Total liabilities and equity 728,352 2,337,918 • A and B share in profits and losses equally. • On January 1, 20x2, C informed A and B of his intention to invest in the partnership for a 20% interest. The partners agreed on the following adjustments prior to C's admission: o Accounts receivable of P55,000 should be written-off. o Inventories of P12,200 are obsolete and have no resale value. o The 'Other assets' should be written off. If no bonus is allowed, how much is C's required investment? 234,167 236,347 324,382 341,367
Problem 41: The following condensed balance sheet is presented for the partnership of A and B, who share profits and losses in the ratio of 6:4 respectively: Cash Non-cash assets B, loan 135,000 1,875,000 90,000 2,100,000 Accounts payable А, сapital В, сapital 360,000 1,044,000 696,000 2,100,000 All assets and liabilities are fairly valued, A and B decided to admit C as a new partner with 20% interest. No bonus or revaluation is recorded. What amount should C contributes in the firm? а. 330,000 b. 348,000 c. 420,000 d. 435,000 Problem 42: The following capital accounts pertain to A and B: P&L ratio Capital 200,000 240,000 A 40% в 60% C is admitted by purchase of ½ interest of both A and B, for P240,000, the P240,000 is divided between A and B, respectively: а. 96,000; 144,000 b. 108,000; 132,000 с. 109,090; 130,910 d. 120,000; 120,000
GWS and BCP organized the GB Partnership on January 1, 2018. The following entries were made in their capital accounts during 2018. Debit Credit GWS, Capital: January 1 April 1 October 1 P315,000 P105,000 175,000 Debit Credit ВСР, Саpital: January 1 March P413,000 1 September 1 November 1 52,500 105,000 94,500 Required: А. If the partnership profit for the year 2018 computed before salaries or interest is P217,000, determine its distribution between the partners under each of the following independent profit-sharing agreements: (1) Interest at 6% is allowed on average capital investments and the remainder of the profit is divided equally. (2) A salary of P126,000 is to be credited to BCP, 6% interest is allowed on each partner on his ending capital balance and the remainder of the profit in the ratio of 3:2. Salaries are allowed GWS and BCP in amounts of P119,000 and P133,000, respectively, and the remaining profit or resulting loss is divided in the ratio of average capital balance.…
blanaces of accounts for M&M partnership are cash 34000 account payable (25000) loan to Matter (9000) Matter capital 8000 Mansour capital (8000) avaliable cash should distributed as follows after payment 25000 to account payables: OA. 1000 to Mansour and 8000 to Matter OB. 1000 to Matter and 8000 to Mansour O c. $4500 each to Matter and Mansour OD. 9000$ for loan of Matter
Numbers 16, 17 and 18 (Partnership Liquidation – Installment Liquidation) On December 31, 2018, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2 of respective partners A, B and C. showed the following information: Cash Noncash assets 1,600,000 1,400,000 Total Liabilities 2,000,000 100,000 A, Capital В, Сарital С, Сарital 500,000 400,000 On January 1, 2019, the partners decided to liquidate the partnership in installment. All partners are legally declared to be personally insolvent. As of January 31, 2019, the following transactions occurred: Noncash assets with a carrying amount P1,000,000 were sold at a gain of P100,000. Liquidation expenses for the month of January amounting to P50,000 were paid. It is estimated that liquidation expenses amounting to P150,000 will be incurred for the month of February, 2019. • 20% of the liabilities to third persons were settled. Available cash was distributed to the partners. As of February 28, 2019, the…
14. On December 31, 2015, the statement of financial position of JMR Partnership is presented below: Assets, at cost 180,000 JJ, loan JJ, capital мм, саpital RR, capital Total 10,000 45,000 40,000 85,000 180,000
The following items are being invested by A and B to form AB Partnership Agreed Cash Inventory Land Building Equipment Total Mortgage on building assumed by the partnership Investment by A 120,000.00 120,000.00 240,000.00 480,000.00 480.000.00 Values Investment by B 120,000.00 240,000.00 480,000.00 840,000.00 240,000.00 600.000.00 REQUIRED: A. Prepare entries to record the formation of partnership assuming that A and B agree that each partner is to receive a capital credit equal to the agreed values of the net assets each partner invested. B. Prepare entities to record the formation of the partnership assuming that A and B agreed that each partner is to receive an equal capital investment.
A, B and C are in partnership sharing profits and losses at the ratio of 5: 3:2. The balance sheet of the firm on 31.12.2021 was as follows: Liabilities Capital A/cs A B C Bank Loan Trade payables Balance Sheet Assets Sundry Fixed Assets Inventories 50,000 40,000 Trade receivables 30,000 Joint Life Policy 40,000 Bank 30,000 1,90,000 80,000 50,000 30,000 20,000 10,000 1,90,000 On 1.1.2022, A wants to retire, B and C agreed to continue at 2:1. Joint Life Policy was taken on 1.1.2016 for 1,00,000 and its surrender value as on 31.12.2021 was 25,000. For the purpose of A's retirement goodwill was raised for ₹1,00,000. Sundry Fixed Assets was revalued for 1,10,000. But B and C did not prefer to show such increase in assets in the Balance Sheet. Also they agreed to bring necessary cash to discharge 50% of the A's claim, to make the bank balance 25,000 and to make their capital proportionate. Prepare necessary journal entries.
The following s 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. Land and Buildings 637500 X Capital A/c 191250 Y Capital A/c 85000 Sundry creditors 170000 Sales (net) 85000 Discount 76500 Provision for bad debts 212500 Commission 6375 Y's Loan A/c 212500 Plant and Machinery 127500 Wages Opening Stock of Finished Goods Opening Stock of Raw material Opening Stock of Work in Progress Sundry debtors Carriage inwards Carriage outwards Factory Expenses Royalties 106250 1381250 10625 6375 42500 127500 3825 31875 6375 Purchase of Raw material (net) 318750 Factory rent & taxes Discount 27625 0. 12325 17000 8500 0. Office rent Insurance Bad debts Office Expenses Salaries of works manager 6375 31875 S1000 Cash at bank 34850 2014500 The following additional information is to be taken into…
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The following accounts pertain to Ali and Basil partnership: cash 10000, non-cash assets 90000, liabilities 30000, Ali capital 50000 and Basil capital 20000. The income ration 3:2. The partnership was liquidated and non-cash assets were sold for 110000. The balance of cash after sales on non-cash assets will be - O a. 120000 O b. 140000 O c. 130000 Od 150000
QUESTION 3 E, C and G were in partnership sharing profits and losses in the ratio 3:2:1 respectively. A summary of the statement of financial position of the partnership as at 30th September 2009 is as follows: GH¢ 21,000 23,700 18,300 GH¢ Capital and Liabilities: Capital: E C Non-Current Assets Current Assets 22,200 14,400 9,900 6,000 10,500 63,000 Bank Account Loan Account C Trade Payables Total Assets 63,000 Capital & Liabilities The partners decided to dissolve the firm as at their last accounting date. The asset realised GH¢61,480. You are required to: Close the books of the firm.

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