Question FourThe following trial balance was extracted from the books of a partnership fimof Sofoa and Siaw who share profit and losses equally on 31/12/2014CR'GHe240,000240,000DR'GHeCapital:SafoaSiawCurrent account: Safoa4,000Siaw6,000Drawings: SafoaSiaw32,00036,000Premises240,000Debtors and creditors320,000200,00010,000Provision for bad debtsDiscounts4,000800Bad debts2,000Purchases and sales340,0001,120,000Returns3,2002,400Fixtures and fittings180,000CarriageStock (1/1/2014)SalariesWages4,000140,00056,000104,000Rates16,000Insurance5,600Office expensesCash at hand4,40028,000L819,2001819.200The following additional information is given:i.Stock at 31/12/2014 GH¢84,000Carriage include carriage inwards of GH¢2,400Wages owing GH¢16,000Provision for bad debts is to be increased to 10% of outstanding debtorsFixtures and fittings is to be depreciated at 10% per annumInterest on capital is at 5%Safoa is to receive a salary of GH¢20,000ii.ii.iv.v.vi.vii.Required:Prepare an Income Statement for the year ended 31/12/2014, Income StatementAppropriation Account, Current Account of the Partners and the Statement ofFinancial Position as at that date.

The Partner's capital account is prepared to make the balance sheet:- Partners Capital Account…

uestion Four The following trial balance was extracted from the books of a partnership fim of Sofoa and Siaw who share profit and losses equally on 31/12/2014 CR'GHe 240,000 DR'GHe Capital: Safoa Siaw Current account: Safoa 240,000 4,000 Siaw 6,000 Drawings: Safoa Siaw 32,000 36,000 Premises 240,000 Debtors and creditors 320,000 200,000 Provision for bad debts 10,000 Discounts 4,000 800 Bad debts 2,000 Purchases and sales 340,000 1,120,000 Returns 3,200 2,400 Fixtures and fittings 180,000 Carriage Stock (1/1/2014) Salaries Wages Rates Insurance 4,000 140,000 56,000 104,000 16,000 5,600 Office expenses 4,400 Cash at hand 28,000 L819.200 1819.200 The following additional information is given: i. Stock at 31/12/2014 GH484,000 Carriage include carriage inwards of GHe2,400 Wages owing GH¢16,000 Provision for bad debts is to be increased to 10% of outstanding debtors Fixtures and fittings is to be depreciated at 10% per annum Interest on capital is at 5% Safoa is to receive a salary of GH420,000 ii. iii. iv. v. vi. vii. Required: Prepare an Income Statement for the year ended 31/12/2014, Income Statement. Appropriation Account, Current Account of the Partners and the Statement of Financial Position as at that date.

uestion Four The following trial balance was extracted from the books of a partnership fim of Sofoa and Siaw who share profit and losses equally on 31/12/2014 CR'GHe 240,000 DR'GHe Capital: Safoa Siaw Current account: Safoa 240,000 4,000 Siaw 6,000 Drawings: Safoa Siaw 32,000 36,000 Premises 240,000 Debtors and creditors 320,000 200,000 Provision for bad debts 10,000 Discounts 4,000 800 Bad debts 2,000 Purchases and sales 340,000 1,120,000 Returns 3,200 2,400 Fixtures and fittings 180,000 Carriage Stock (1/1/2014) Salaries Wages Rates Insurance 4,000 140,000 56,000 104,000 16,000 5,600 Office expenses 4,400 Cash at hand 28,000 L819.200 1819.200 The following additional information is given: i. Stock at 31/12/2014 GH484,000 Carriage include carriage inwards of GHe2,400 Wages owing GH¢16,000 Provision for bad debts is to be increased to 10% of outstanding debtors Fixtures and fittings is to be depreciated at 10% per annum Interest on capital is at 5% Safoa is to receive a salary of GH420,000 ii. iii. iv. v. vi. vii. Required: Prepare an Income Statement for the year ended 31/12/2014, Income Statement. Appropriation Account, Current Account of the Partners and the Statement of Financial Position as at that date.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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QUESTION 31. Frame and French are in partnership sharing profits and losses in the ratio 3/5:2/5, respectively. The following is their trial balance as at 30 September 2015. Dr Cr TZS TZS Buildings (cost TZS 210,000) 160,000 Fixtures at cost 8,200 Provision for depreciation: Fixtures 4,200 Debtors 61,400 Creditors 26,590 Cash at bank 6,130 Stock at 30 September 2014 62,740 Sales 363,111 Purchases 210,000 Carriage outwards 3,410 Discounts allowed 620 Loan interest: P Prince 3,900 Office expenses 4,760 Salaries and wages 57,809 Bad debts 1,632 Provision for doubtful debts 1,400 Loan from P Prince 65,000 Capitals: Frame 100,000 French 75,000 Current accounts: Frame 4,100 French 1,200 Drawings: Frame 31,800 French 28,200 640,601 640,601 Avitus Dominick: Msc Finance and Investment, CPA (T ) & BAC (0714-336097)
Question 1: Jo, Lee and Bee are partners who share profits and losses in the ratio of 35:25:40 to Jo, Lee and Bee respectively. The statement of Financial Position of the partnership on December 31, 2017 is as follows:ASSETSCash P8,000Noncash assets 110,000LIABILITIES AND CAPITALLiabilities P18,000Loan from Lee 2,000Jo, Capital 32,700Lee, Capital 23,500Bee, Capital 41,800On January 1, 2018, the partners decided to liquidate. For the month of January, some assets were sold for a loss of P2,000. Liabilities of P15,000 were paid. Payment to Partners Jo, Lee and Bee from the initial sale of assets were P150, P2,250 and P4,600 respectively. Cash withheld for possible liquidation expenses and unrecognized liabilities amounted to P1,250.What was the book/carrying value of the noncash assets sold in January?A. 28,250B. 26,250C. 20,250D. 18,250
The Statement of Financial Position of the XY partnership on December 31, 2018, appears below. $ 60,000 LIABILITIES $ 60,000 CASH OTHER ASSETS TOTAL ASSETS 200,000 a. $260,000 X, CAPITAL Y, CAPITAL TOTAL LIABILITIES AND CAPITAL 90,000 110,000 $260,000 X and Y share profits and losses in the ratio 50:50. Each of the following questions is independent of the others. Prepare journal entries for each of the following: Use bonus method where appropriate and show all computations. Refer to the above information. Assume that Z purchases a one-fourth proportionate capital interest directly from Y for a total of $60,000. (Direct purchase) b. Refer to the above information. Assume Z invests $60,000 cash into the XY partnership for a one-fourth interest in partnership capital and profits. c. Refer to the above information. Assume that Z invests $80,000 cash into the XY partnership for a one-fifth interest in partnership capital and profits.
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…
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
X and Y PartnershipX and Y are in partnership and divide profits and losses in the ratio of 2:1 respectively. Z was admittedas a partner on 1 March 2020. The new profit-sharing ratio between X, Y and Z will be 4:2:1respectively.X AND Y PARTNERSHIPSTATEMENT OF FINANCIAL POSITION AT 29 FEBRUARY 2020RASSETSNon-current assetsProperty, plant and equipment 60 000COFA121 – Take-home Test 3 Paper S2 2020| V1.0 Page 6 of 11Current assets 180 000Inventories 88 000Trade and other receivables 52 000Cash and cash equivalents 40 000Total assets 240 000EQUITY AND LIABILITIESCapital & Reserves 200 000Capital X 127 500Capital Y 67 500General Reserve 5 000Current liabilitiesTrade and other payables 40 000Total equity and liabilities 240 000Additional information:For the purpose of the change in ownership the following agreement was reached:1. Provision would be made for credit losses at 10% of the outstanding (carrying) amount of theaccounts receivable.2. Inventories would be valued at R90 000.3.…
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.…
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…
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…
EXERCISE 7. Journal Entries. Catriona and Pia are partners who contributed P100,000 and P70,000, respectively, to the partnership upon its inception in 2018. The 2021 partnership ledger showed the following movements in their capital accounts: Catriona, Capital Jan. 1 300,000 Apr. 1 Jul. 1 100,000 Oct. 1 190,000 Pia, Capital Jan. 1 200,000 Oct. 1 40,000 Apr. 1 150,000 Dec. 1 75.000 Profit of the partnership for 2021 was P280,000. Prepare and upload journal entries related to profit distribution under the following independent cases, assuming permanent capital balances are not maintained and Catriona and Pia agreed to share profits and losses: 1. In the ratio 3:2, respectively 2. According to original capital 3. According to beginning capital 4. According to average capital 5. According to ending capital 20,000
NOWV2 | Online teach X b My Questions | bartleby /ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=D&inprogress%=false E Calculator A summary of the liquidation process whereby cash is distributed to the partners based on the balances in their capital accounts. Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $27,600, $39,300, and $17,400, respectively. noncash assets, and liabilities total $44,100, $72,900, and $32,700, respectively. Between July 1 and July 29, the noncash assets are sold for $58,500, the liabilities are paid, an- remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1. Prepare a statement of partnership liquidation for the period July 1-29. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) negative…