A's capital is P280,000 and D's is P80,000 and they share income in a 6:4 ratio, respectively . They decide to admit G to the partnership. A and D agree that some of the inventory is obsolete. The inventory account is decreased before G is admitted. G invests P80,000 for a 25% interest. Compute for the capital balance of D after the admittance of G.

A's capital is P280,000 and D's is P80,000 and they share income in a 6:4 ratio, respectively . They decide to admit G to the partnership. A and D agree that some of the inventory is obsolete. The inventory account is decreased before G is admitted. G invests P80,000 for a 25% interest. Compute for the capital balance of D after the admittance of G.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 22P

See similar textbooks

Similar questions

In the AB partnership, A's capital is P150,000 and B's capital P50,000 and they share income in a 1:4 ratio,respectively. They decide to admit C to the partnership. A and B agree that some of the inventory isobsolete. The inventory account is decreased before C is admitted. C invests P50,000 for a 60% interest incapital. What is the amount of inventory written down? a. 100,000b. 0c. 166,667d. 250,000
Partners Prada, Paris and Paco have capital balances of P 90,000, P 70,000 and P 40,000 respectively and they share profits in the ratio of 3:3:4. Paco is no longer willing to contribute the amount of time and effort to the partnership. If Paris purchases Paco's interest for P 64,000, what is the balance of Paris' capital account after the withdrawal of Paco?
K. Partners Prada, Paris and Paco have capital balances of P 90,000, P 70,000 and P 40,000 respectively and they share profits in the ratio of 3:3:4. Paco is no longer willing to contribute the amount of time and effort to the partnership. If Paris purchases Paco's interest for P 64,000, what is the balance of Paris' capital account after the withdrawal of Paco?
Tim and Michelle have decided to form a partnership with a 60/40 partnership interest ratio. Tim contributes P7500 cash and merchandise inventory with a market value of P1500. a. Tim, Capital will be credited in the amount of b. Michelle's investment should be C. After accounting for the total investments of Tim and Michelle, the total assets of the partnership amounts to
Partners Y and Z receive a salary of P15,000 and P30,000, respectively, and share income and losses in a 2:1 ratio, respectively. If the partnership suffers a P15,000 net loss in 2010, the entry to close the income or loss into their capital accounts is: a. Y, Capital Z, Capital b. Y, Capital Income Summary c. Y, Capital Z, Capital O O O O O A Z, Capital Income Summary d. Y, Capital B Income Summary Z, Capital Income Summary 15,000 30,000 25,000 10,000 5,000 20,000 45,000 10,000 15,000 15,000 10,000 10,000
JM and PK, having capital balances of P2,940,000 and P1,575,000 respectively, decided to admit CY into their partnership. CY is to invest sufficient amounts in order to have a 25% interest in the partnership. If JM and PK share profit in a proportion of 3:1, respectively, and PK’s capital balance after CY’s investment was P1,769,250. How much was invested by CY? A. 2,546,250 B. 2,541,000 C. 3,522,750 D. 1,764,000
Bianca, Mariel and Toni are partners with capital balances of P100,000, P140,000, and P180,000, respectively. They share profits and losses in the ratio of 10:15:20. Toni decides to withdraw from the partnership receiving P240,000 including a loan a loan to the partnership in the amount of P10,000 Using asset revaluation method, how much is the amount of asset revaluation?
Ritz , Von, and Lara are partners with capital balances of P20,000, P30,000, and P50,000 respectively. They share income in the ratio of 1:2:3. Income Summary with a debit balance of P30,000 is to be closed to the capital accounts. A gain is recognized for Ritz in the amount of P3,000. The amount of cash she would be getting from the partnership upon withdrawal would be?
In the AD partnership, Allen's capital is P140,000 and Daniel's is P40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. What amount will David have to invest to give him one-fifth percent interest in the capital of the partnership if no goodwill or bonus is recorded?
Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $28,000 and $18,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $35,000.a. What is the amount of a gain or loss on realization?b. How should the gain or loss be divided between Hewitt and Patel?c. How should the cash be divided between Hewitt and Patel?
Jocelyn and Juvelyn decide to form a partnership. Jocelyn invests P25,000 cash and accounts receivable of P30,000 less allowance for doubtful accounts of P2,000. Juvelyn contributes P20,000 cash and equipment having a P6,000 book value. It is agreed that the allowance account should be P3,000 and the fair market value of the equipment is P10,000. How much should the capital of Jocelyn be credited?
In the AD partnership, Allen's capital is P140,000 and Daniel's is P40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. What amount will David have to invest to give him one-fifth percent interest in the capital of the partnership if no goodwill or bonus is recorded?