A desire to purchase one-fourth of capital and profit and loss interest in the partnership of B, C, and D. The three partners agree to se A 20% of their respective capital and profit and loss interests in exchange for a total payment of P100,000. The payment is made directly to the individual partners. The capital accounts and the respective percentage interests in profits and losses immediately before the sale to A following B с D 168,000 104,000 48,000 50% 35% 15% Compute the capital balance to be credited to A.
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- The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.Partnership Dissolution 1. The partnership of A, B, & C agree to sell D one-fourth of their respective capital and profit and loss interest in exchange for a total payment of P20,000. The partners capital balances and profit and loss ratio are as follows: A (60%), P50,000; B (30%), P40,000; C (10%), P 20,000. If assets are to be revalued prior to the admission of D, how much is the capital balances of A, B, C after admission of D? 2.The computation of sale or settlement of the share or interest in a partnership is the same in retirement, withdrawal, insolvency/incapacity and death of any of the partners if: a. If the sale or settlement is approved by all the remaining partners. b. If sale or settlement is approved by the retiring, withdrawing partner or his administrator in case of death or incapacity. c. The partners have equal interest in the partnership. d. All facts and circumstances are the same and the only distinction is the reason for disassociation. 3.Va and Vo form a…The following balances are presented to you before admission of a new partner by purchase of interest: Cash, P85,000 Other assets, P415,000 Liabilities, P80,000 AA, Capital, P252,000 BB, Capital, P126,000 CC, Capital, P42,000 The partners agree to sell DD 20% of their respective capital and profit and loss interests for a total payment of P90,000. The capital balance of partner AA after the admission of DD is:
- CFOUR, desires to purchase a one-fourth capital and profit and loss interest in the partnership ofCONE, CTWO AND CTHREE. The three partners agree to sell CFOUR one-fourth of theirrespective capital and profit and loss interest in exchange for a total payment of P200,000. The profitand loss ratio and capital balances of partners are as follows:CONEP400,000 60%CTWOP200,000 30%CTHREE P100,000 10%If assets are to be revalued prior to the admission of CFOUR, what would be the capital balance ofCONE after admission of CFOUR? a. P300,000b. P345,000c. P385,000d. P460,0005. Assume that a partnership had assets with a book value of P240,000 and a market value of P195,000, outside liabilities of P70,000, loans payable to partner Able of P20,000, and capital balances for partners Able, Baker, and Chapman of P70,000, P30,000, and P50,000. How much would Able receive upon liquidation of the partnership assuming profits and losses are allocated equally? a. P70,000 b. P90,000 C. P75,000 d. P55,000A and G executed a partnership agreement that lists the following assets contributed at the partnership's formation: A-cash, P22,000 and Furniture and Equipment P12,000: B-cash, P32,000 Inventory, P17,000 Building, P42.000, The building is subject to a mortgage of P8,000, which the partnership has assumed. The partnership agreement also specified that profits and losses are to be distributed equally. What amounts should be recorded as capital for A at the formation of the partnership?
- AA and BB entered into partnership on March 1, 2022 by investing the following assets: AA BB Cash P 30,000 Inventory P 90,000 Equipment 160,000 Furniture 200,000 The agreement between AA and BB provides that profits and losses are to be divided 40% and 60%, respectively, and that the partnership is to assume liability on the equipment of P60,000. The partners further agree that BB is to receive a capital credit equal to his profit and loss ratio. How much is the cash to be invested by BB?1. Partners MM and LL have profit and loss agreement with the following provisions: salaries of P30,000 and P45,000 for MM and LL, respectively; a bonus to MM of 10% net income after salaries and bonus; and interest of 10% on average capital balances of P20,000 and P35,000 for MM and LL, respectively. One-third of any remaining profits will be allocated to MM and the balance to LL. If the partnership had a net income of P104,500, how much should be allocated to MM, assuming the provisions of the profit and loss agreement are ranked by order of priority, starting with salaries?2. Renalie and Ben are partners who share profits and losses in the ratio of 6:4, respectively. On June 1, 20X2, their respective capital accounts were as follows:• Renalie - P60,000 • Ben - P50,000On the same date, Jeremiah was admitted as a partner with 1/5 interest in capital and profits for an investment of P40,000. What is the capital of Ben after Jeremiah’s admission if the partnership began with a total…10. On October 1, A and B pooled their assets to form a Partnership, with the firm to take over the business assets and assume liabilities. Partners capitals are to be based on net assets transferred after the following adjustments. The partners agreed to the following adjustments: A’s inventory is to be increased by P15,000, while B’s inventory has a current fair market value of P100,000 and an agreed value of P110,000. B’s unadjusted inventory amounted to P90,000. Machinery and equipment are over-depreciated by P5,000 and P8,000 for A and B, respectively. Furnitures and fixtures for partner A has a current fair market value of P60,000 and an agreed value of P50,000. Furnitures and fixtures is carried at its cost amounting to P100,000 with accumulated depreciation of P45,000. Accrued rent income of P10,000 for A, and accrued salaries of P5,000 for B should be recognized on their respective books. The individual trial balances on October 1, before adjustments, follow: DESCRIPTION…