Annie, Emy and Mary are in the process of liquidating their partnership and their account balance as of August 1, 2015 are as follows: Debit Credit Cash P 15 000 Non – cash assets 35 000 P 7 000 5 000 Emy, Loan Annie, Capital Emy, Capital Mary, Capital 17 500 20 500 The profit and loss sharing ratio has been 4:3:3 between Annie, Emy and Mary respectively. 1. Assuming that the partners hip realized P 15 000 from the sale of non – cash assets and that any deficiency is uncollectible, Emy must receive: а. Р 17000 с. Р9 500 d. Not given b. Р 18500 2. If Annie had personal assets of P 25 000 and personal liabilities of P 22 500 and that the partnership realized P 12 500 from the sale of its non – cash assets, Mary must receive. а. Р 20 500 b. Р 12 500 с. Р 13 000 d. Not given
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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.Hans, Sam and Mia are partners who share profits and losses in the ratio of Sam and Mia respectively. Position of the partnership as of December 31, 2017 is given as follows: 35:25:40 to Hans, The statement of Financial Assets Liabilities and Equity P 120,000 Liabilities 1,650,000 Cash P1,050,000 Noncash Assets 41,400 257,700 Loan from Hans Hans, Capital Sam, Capital Mia, Capital 90,000 330,900 On January 10, 2018, the partners decided to liquidate. of liquidation, Non-cash assets with a book value of P1,000,000 was sold for P975,000. withheld P10,000 cash. In the first month The partnership also paid P20, 000 liquidating expenses and P300,000 of the liabilities remain unpaid. Determine how much will Hans receive in the first cash distribution. 12,100 2,900 А. 52,350 С. 48,900 Determine the ending capital of Mia after the first cash distribution. 312,900 310,000 В. D. 264,000 260,000 А. С. В. D.On the December 31, 2020, the Statement of Financial Position of LOVE Partnership shows the following data with profit or loss sharing of 5:3:2.CashP10,000,000Noncash Asset40,000,000Total LiabilitiesP20,000,000Ona10,000,000Vina15,000,000Ena5,000,000On January 01, 2021, Lina is admitted to the new partnership named LOVE by investing P20,000,000 for 50% capital interest in the new partnership. What is the new capital balance of Ena after Lina’s admission in LOVE Partnership?
- 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. 18,250Can you please help me with this one by giving a detailed solution? Perhaps if you could, please explain why such amounts would be added or deducted in order to get the book/carrying value? 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: ASSETS Cash: $8,000 Noncash assets: $110,000 LIABILITIES AND CAPITAL Liabilities: $18,000 Loan from Lee: $2,000 Jo, Capital: $32,700 Lee, Capital: $23,500 Bee, Capital: $41,800 On January 1, 2018, the partners decided to liquidate. For the month of January, some assets were sold for a loss of $2,000. Liabilities of $15,000 were paid. Payment to Partners Jo, Lee and Bee from the initial sale of assets were $150, $2,250 and $4,600 respectively. Cash withheld for possible liquidation expenses and unrecognized liabilities amounted to $1,250. What was the book/carrying value of the noncash assets sold…Problem: The following statement of financial position is presented for the partnership of Maia, Cheska and Chinchin who shares profits and losses in the ratio of 5:3:2 respectively. ASSETS LIABILITIES AND EQUITY Cash P120,000.00 Liabilities P280,000.00 Other assets 1,080,000.00 Maia, Equity 560,000.00 Cheska, Equity 320,000.00 Chinchin, Equity 40,000.00 P1,200,000.00 P1,200,000.00 Question No. 4. Assume that the assets and liabiities are fairly valued on the statement of financial position and the partnership decided to admit Joco as a new partner with a 1/5 interest. No goodwill or bonus is to be recorded. How much should Joco contribute in cash or other assets? a. P240,000.00 b. P230,000.00 c. P184,000.00 d. P147.200.00 e. None of these. Question No. 5. Assume tha instead of admitting a new partner, the partners decided to liquidate the partnership. If the other assets are sold for P800,000.00, how should the available cash be distributed to each partner? a. Maia, P280,000.00;…
- The following condensed statement of financial position is presented for the partnership of Morales, Gamino, and Quito, who share profits and losses in the ratio of 4:3:3, PROFESSOR: NAME: SECTION: Problem #15 Determining a New Partner's Investment Cost respectively. Accounts Payable Morales, Capital Gamino, Capital Quito, Capital Total Liabilities and Capital P150,000 260,000 180,000 160,000 P750,000 P 40,000 710,000 Cash Other Assets Total Assets P750,000 Assume that the partnership decided to admit Abello as a new partner with a one- fourth interest. Required: For each of the following independent cases, determine the amount that Abello must contribute in cash or other assets: 1. No goodwill or bonus will be recorded. 2. A bonus of P24,000 is to be paid by Abello and allocated to the prior partners. 3. The partners agreed that total resulting capital should be P820,000 and no goodwill should be recognized. 4. Other assets are written down by P20,000 and a bonus of P40,000 is paid to…Adam and Boru are partners sharing profit and loss in the ratio of 1:1. Their Statement of Financial Position(Balance Sheet) stood as at 31.12.2020 as follows: A and B Partnership Statement of Financial Position As at 31st December 2020 ASSETS 2020 Current Assets Kshs'000 Kshs'000 Cash and Cash Equivalent 43,500 Short Term Deposits - Prepaid Insurance 1,000 Debtors 20,500 Less Provision for Doubtful Debts (1,000) 19,500 Inventories 30,000 94,000 Non Current Assets Machinery 22,000 Less:Accumulated Depreciation - 22,000 Buildings 30,000 Less:Accumulated Depreciation - 30,000…The following balances as at October 31, 2016 for the Partnership of Kathy, Lilia and Minda were as follows: Cash P50,000 Non-cash assets 400,000 Liabilities 15,000 Kathy, Capital 127,500 Lilia, Capital 82,500 Minda, Capital 225,000 Kathy has decided to retire from the partnership on October 31. The estimated profit of October 31 is P100,000. Their profit and loss ratio is 3:3:4 to Kathy, Lilia and Minda, respectively. Required: - Compute for the Total Partners Equity after dissolution. - Compute New Capital Accounts of Remaining partner using Bonus Method and Revaluation Method under the following INDEPENDENT cases: a. Kathy will be paid by the partnership for P170,000 b. Kathy will be paid by the partnership for P100,000
- Yaw, Mary, and Hanna have been in partnership for a number of years sharing profit in the ratio 6:5:3. Work-in-progress was not brought into the accounts. The balance sheet of the partnership as at 31" March 2020 showed the following position: GH c000 GH c000 Tangible Assets 25,000.00 G oodwill Capital account: 22,400.00 Y aw 12,950.00 Maгy 18,000.00 D ebto rs 73,500.00 Hanna 8,700.00 balance at bank 10,450.00 Sundry C reditors 67,600.00 119,300.00 119,300.00 On 31" March 2020, Yaw retired from the partnership, and it was agreed to admit Osei as a partner on the following terms: i. Goodwill in the old partnership was to be revalued to two years purchase of the average profit over the last three years. The profit of the last three years have been GHC12,400,000; GHC13,600,000; GHC14,005,000. Goodwill was to be written off in the new partnership. ii. Yaw is to take his car out of the partnership assets at an agreed value of GHC1,000,000. The car had been included in the accounts as at 31…The following balances as at October 31, 2016 for the Partnership of Kathy , Lilia and Minda were as follows : Kathy , Capital 127,500 Lilia , Capital 82,500 Minda , Capital 225,000 Kathy has decided to retire from the partnership on October 31. Their profit and loss ratio is 3:3 :4 to Kathy , Lilia and Minda , respectively. Assumptions : a. All the remaining partners will purchase the interest of Kathy by paying P120,000 b. Only Minda will purchase the interest of Kathy by paying P100,000. c. A new partner Olan will purchase the interest of Kathy by paying P80,000. d. The partnership will purchase the interest by paying 168,000 and no goodwill is to be recorded. e. The partnership will purchase the interest by paying 126, 000 and no goodwill is to be recorded. f. The partnership will purchase the interest by paying 150, 000 and goodwill is to be recorded . Required: i. Table (like in the discussion ). ii. Entry upon retirement of Kathy. iii.Answers to the following questions:…A, B and C were in partnership sharing profits as 2:2:1. Their Balance Sheet was as follows: BALANCE SHEET as at 31st December, 2014 Liabilities •Creditors Assets 4,000 Cash 4,000 Capital Account : Bills Receivable 2,000 10,000 Inventory 4,000 Premises 2,000 A 4,000 10,000 20,000 20,000 They decided to dissolve the firm on the above date. The assets realised and liabilities were paid as follows : Inventory realised $ 4,520 A took over Premises at $ 39,000 Creditors were paid $ 3,800 Ctook over Bills Receivables at $1,800 Realisation expenses $120 Show the Realisation Account, Partners' Capital Accounts and Cash Account.