A. 68,000; 32,000; 50,000B. 66,667; 33,333; 50,000C. 50,000, 50,000, 50,000D. 60,000, 60,000, 60,00015. In the AB partnership, A's capital is P150,000 and B's capital P50,000 and they share income in a1:4 ratio, respectively. They decide to admit C to the partnership. A andB agree that some of theinventory is obsolete. The inventory account is decreased before C is admitted. C investsP50,000 for a 60% interest in capital. What is the amount of inventory written down?A. 166,667B. 100,000C. 250,000D. 0

Here in this question we are required to calculate how much inventory balance written down in…

Answered: 15. In the AB partnership, A's capital…

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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LO.2 In the current year, Bill Parker (54 Oak Drive, St. Paul, MN 55164) is considering making an investment of 60,000 in Best Choice Partnership. The prospectus provided by Bills financial planner indicates that the partnership investment is not a passive activity and that Bills share of the entitys loss in the current year will likely be 40,000, whereas his share of the partnership loss next year will probably be 25,000. Write a letter to Bill in which you indicate how the losses would be treated for tax purposes in the current year and the following year.
Thandie and Marco are partners with capital balances of $60,000. They share profits and losses at 50%. Chris contributes $30,000 to the partnership for a 1/3 share. What amount should Thandies capital balance in the partnership be? A. $60,000 B. $50,000 C. $45,000 D. $30,000
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.
The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have capital balances of $45,000 each. Prepare a schedule showing how the bonus should be divided if Ashanti joins the partnership with a $60,000 investment. The partners new agreement will share profit and loss in a 1:3 ratio.
Juan contributes marketable securities to a partnership. The book value of the securities is $7,000 and they have a current market value of $10,000. What amount should the partnership record in Juans Capital account due to this contribution? A. $10,000 B. $7,000 C. $3,000 D. none of the above
Thandie and Marco are partners with capital balances of $60,000. They share profits and losses at 50% each. Chris contributes $30,000 to the partnership for a 1/3 share. What amount should the partnership record as a bonus to Chris? A. $20,000 B. $15,000 C. $10.500 D. $5,000
The partnership capital is 300,000 and its total liabilities are 100,000. if the assets of thepartnership are undervalued by 20% and the liabilities are overvalued by 10%, how much is thecorrect amount of Partner B’s capital if his interest in the partnership is 40% A. 200,000B. 164,000C. 160,000D. 120,000
If the net income of the partnership is P 250,000 and the profit/loss ratio is 1:3:2 for A, B and C, respectively, how much is the share of C in the net income? A. P 50,000 B. P 41,667 C. P 125,000 D. P 83,333
D1, D2, and D3 are partners whose capital balances are P250,000, 150,000, and P125,000 respectively and their profit ratio are 50:25:25 respectively. D4 is admitted into the partnership by purchasing 1/3 equity share of D2 for P60,000 and investing P200,000 cash to the partnership. The partners agree to the total capitalization of P750,000, 1/3 of which is D4 capital credit and share in profits and the old partners will share in the remaining profit based on their old ratio. What is the capital balance of D1after the admission of D4?
In the ABC partnership (to which D seeks admittance), the capital balances of A, B, and C, who share income in the ratio of 5:3:2, are: A. capital P1,000,000 B,capital 600,000 C,capital 400,000 How much is the estimated amount to be invested by D for a 20% interest?
Using the information attached, how much is the initial total capital of the partnership? 592,000 750,000 1,342,000 2,322,000
12. Presented below is the condensed balance sheet of the partnership of A, B, and C who share profits and losses in the ratio of 2:3:5. respectively: Cash 100,000 Liabilities 50,000 Other assets 350,000 A, Capital 110,000 B, Capital 120,000 C, Capital 170,000 Total 450,000 Total 450,000 The partners agree to sell to D 10% of their respective capital and profit and loss interests for a total payment of P50,000. The payment by D is to be made directly to the individual partners using the book value approach. Determine the capital balance of B after admission of the new partner.

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