1,400.(Ans.: Interest on Loan by X 2,400; Interest on Loan by YR 1,200;Case 1. Profit: X 6,960; Y 10,440; Case 2. Loss: X 240; YR 360;[Hint: Interest on Loan by partner is a charge against profit.]loan ofCase 3. Profit: X 560; Y ? 840; Case 4. Loss: X 2,000; Y R 3,000.)2021 wast and Ball are partners sharing the profits in the ratio of 2:3 with capitals of 1,20,000 and ? 60,000espectively. On 1st October, 2020, Bat and Ball gave loans of 2,40,000 and 1,20,000 respectively tote frm. Bat had allowed the firm to use his property for business for a monthly rent of 5,000. Lossaursngfor the year ended 31st March, 2021 before rent and interest amounted to 9,000. Show distribution of[Ans.: Share of Loss: Bat- 31,920; Ball-47,880.]profit/loss.THint: Interest on Loan by partner and Rent are charges against profit.]Akhil and Bimal are partners sharing profits in the ratio of 3:2. Akhil gave loan to the firm of 1,00,000 on1st. October, 2020. On the same date, the firm gave loan to Bimal of 1,00,000. They do not have antheagreement as to interest.Akhil had also given his personal property for firm's godown at a monthly rent of 5,000.Firm earns profit of 1,03,000 (before above adjustments) for the year ended 31st March, 2021. Show the[Ans.: 40,000 [R 1,03,000 – 7 3,000) (interest on Loan by Akhil)- 60,000 (rent)] will bedistributed in the ratio of 3:2. Akhil-24,000; Bimal- 16,000.]distribution of profit for the year.(Hint: In the absence of agreement, Akhil will get interest @ 6% p.a. on loan given by him. Interest will notbe charged on loan to Bimal by the firm. Also, rent will be paid to Akhil as per the agreement.]11. Nirmal and Pawan are partners sharing profits in the ratio of 3: 2. The firm had given loan to Pawan of75,00,000 on 1st April, 2020. Interest was to be charged @ 10% p.a. The firm took loan of 2,00,000 from Nirmalon 1st October, 2020. Before giving effect to the above, the firm incurred a loss of 10,000 for the yearended 31st March, 2021.tion Alc 34.000Determine the amount to be transferred to Profit and Loss Appropriation Account.hey

840; Case 4. Loss: X 2,000; Y 3,000.) charge against profit.] 9. Bat and Ball are partners sharing the profits in the ratio of 2:3 with capitals of 1,20,000 and ? 60,000 rnectively. On 1st October, 2020, Bat and Ball gave loans of 2,40,000 and ? 1,20,000 respectively to he firm. Bat had allowed the firm to use his property for business for a monthly rent of 5,000. Loss for the year ended 31st March, 2021 before rent and interest amounted to 9,000. Show distribution of profit/loss. (Hint: Interest on Loan by partner and Rent are charges against profit,) [Ans.: Share of Loss: Bat- 31,920; Ball- 47,880.] Akhil and Bimal are nartno

840; Case 4. Loss: X 2,000; Y 3,000.) charge against profit.] 9. Bat and Ball are partners sharing the profits in the ratio of 2:3 with capitals of 1,20,000 and ? 60,000 rnectively. On 1st October, 2020, Bat and Ball gave loans of 2,40,000 and ? 1,20,000 respectively to he firm. Bat had allowed the firm to use his property for business for a monthly rent of 5,000. Loss for the year ended 31st March, 2021 before rent and interest amounted to 9,000. Show distribution of profit/loss. (Hint: Interest on Loan by partner and Rent are charges against profit,) [Ans.: Share of Loss: Bat- 31,920; Ball- 47,880.] Akhil and Bimal are nartno

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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#511 The balance sheet for Coney, Honey and Money partnership shows the following information as of December 31, 2021: Profit and loss ratio is 3:2:1 for Coney, Honey and Money, respectively. Other assets were realized as follows: Cash is distributed as assets are realized. The total cash received by Honey is P100,000 P30,000 P0 P40,000 The total loss to Coney is P60,000 P0 P40,000 P20,000 Cash received by Money in January 2022 is P10,000 P0 P4,000 P20,00
5. Maria brought in her business to the partnership, the accounts receivable has a P 100,000 balance, it was agreed that the net realizable value of the receivable should be adjusted to P 75,000. What should be the amount of allowance for bad debts? a. 65,000 b. 15,000 c. 25,000 d. 55,000
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A, B and C are solidary debtors of W and Y, solidary creditors for P 12,000 where the share of the debtors in the obligation is 2:3:5 while the share of the creditors is 1:2. If B is a minor, which of the following is correct? a. W can collect from C P8,400 b. Y can collect from C P8,000 c. W or Y can collect from C P12,000 d. The insolvency of A will be shouldered by B and C in proportion to their respective obligations
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At May 31, 20x1, Quay owned a P10,000 whole-life insurance policy with cash surrender value of P4,500. The cash surrender value is used as a collateral security for an outstanding loan of P2,500. In Quay's May 31, 20x1 statement of financial position, what amount should be reported as investment in life insurance? Answer:
An attorney charges a fixed fee on $250 plus 10% commission on settlements. Which equation represents that A)y=10x + 250 B)y=250x + 0.1 C)y=0.01x + 250 D)y=0.1x + 250
A. P4,500 each to AA and JJ B. P8,000 to AA and P1,000 to JJ C. P9,000 loan payable to AA D. P1,000 to AA and P8,000 to JJ
If EBIT=6,000; interest expense=500, t=30%, and Ks=10%, then the value of S is equal to: a) 60,000 b) 55,000 c) 38,500 d) 48,500
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