AAA, BBB, and CCC are partners sharing profits and losses in the ratio of 5:3:2. During the year their investments and withdrawals are as follows: Investment of AAA, BBB and CCC for P200,000, P175,000 and P375,000 respectively. Withdrawals of AAA, BBB and CCC amounting to P125,000, P62,500 and P62,500 respectively. On December 31, 2021, the partners decided to liquidate their business Affter exhauusting partnership assets

AAA, BBB, and CCC are partners sharing profits and losses in the ratio of 5:3:2. During the year their investments and withdrawals are as follows: Investment of AAA, BBB and CCC for P200,000, P175,000 and P375,000 respectively. Withdrawals of AAA, BBB and CCC amounting to P125,000, P62,500 and P62,500 respectively. On December 31, 2021, the partners decided to liquidate their business Affter exhauusting partnership assets

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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Present in good accounting form AAA, BBB, and CCC are partners sharing profits and losses in the ratio of 5:3:2. During the year their investments and withdrawals are as follows: Investment of AAA, BBB and CCC for P200,000, P175,000 and P375,000 respectively. Withdrawals of AAA, BBB and CCC amounting to P125,000, P62,500 and P62,500 respectively. On December 31, 2021, the partners decided to liquidate their business. After exhausting partnership assets, liabilities of P125,000 remain unpaid. AAA is personally insolvent. The gain or loss on realization is: a. -125,000 b. 625,000 c. -625,000 d. 125,000
Required: Prepare a statement of profit distribution for each of the following independentprofit-sharing agreements:a. In the average capital ratio.b. Interest on average capital at 9 percent, salaries of P60,000 to Robin and Hood,respectively, a bonus to Robin of 25 percent of net income after interest and salaries butbefore the bonus, and the balance equally.c. Interest at 10 percent on the amount by which the ending capital balance exceeds thebeginning balance and the balance equally.d. Salaries of P80,000 and P120,000 to Robin and Hood, respectively, a bonus to Robin of25 percent of net income after salaries and the bonus, and the balance equally.
AAA, BBB, CCC, and DDD are partners sharing profits in the ratio of 3/21, 4/21, 6/21, and 8/21. Their capital balances on December 31, 2030 are as follows:AAA P 500BBB 12,500CCC 12,500DDD 4,500The partners decide to liquidate their firm and they accordingly convert the noncash assets into P11,600 cash. After paying liabilities of P1,500, they have P11,100 to divide. How much was the distribution to partner CCC?a. P0 b. P3,560 c. P4,160 d.P7,100
Jpea, Jic, and Jfenix formed a partnership and named it ESBIEYEY. At the end of the year, the partnership earned a profit of P 1,000,000. The capital balances are P250,000, P280,000, and P270,000 for Jpea, Jic, and Jfenix, respectively. The partners agreed to distribute the profit as follows: Interest to ending capital of 10% will be given Jpea and Jic will be given a salary amounting to P 150,000 each Jfenix will be given a bonus of 10% of net income after interest, salary and bonus Remaining profit is to be distributed equally How much is the bonus given to Jfenix? A. P 67,000 B. P 62,000 C. P 56,364 D. P 60,909 How much is Jpea’s share in net income? A. P 365,879 B. P 360,879 C. P 362,879 D. P 364,879 How much is Jic’s share in net income? A. P 360,879 B. P 362,879 C. P 364,879 D. P 365,879
King, Queen and Prince are partners sharing profit and loss in the ratio of 2:1:1 respectively. Their capital balances are P400.000 for King, P200,000 for Queen and P100.000 for Prince. Claims of suppliers amounted to P500,000 including the loan extended by Prince, P0,000. The cash balance amounted to P300,000 and increased to P1,050,000 as a result of the sale of the non-cash assets.12. How much was the non-cash assets of the partnership?a. P950,000c. P1,200,000e. answer not givenb. P1.250.000d. P900,000
Explain with solution Partners Biore and Selisana each have a P450,000 capital balance and share profits and losses in a 3-2 ratio, respectively. Cash equals P150,000, non-cash assets equal P1,500,000, and liabilities equal P750,000. If the non-cash assets are sold for P700,000 and both partners agree to make up for any capital deficits with personal cash contributions, upon liquidation Selisana will receive a cash distribution of a. P100,000. b. P50,000. CP130,000. d. P0
A and B are partners in the ratio of 2:3.Thier balance sheet shows machienery at 400000,stock at 160000 and debtors at 320000,c is admitted and new profit sharing ratio is agreed at 6:9;5. Machinery is revalued at 340000 and a provition is made for doubful debts @25%. A share in loss on revaluation amount to 20000. Revalued value of stock will be
W and X are partners who have agreed to admit Y, who will invest P15,000 for a 20 percent interest. The previous capital balances were P15,000 and P30,000 for W and X, respectively. W and X had shared profits and losses equally. What amount will be recorded in Y's Capital account? a. P6,000 credit b. P12,000 credit c. P15,000 credit d. P9,000 credit
Shoes and Socks are in partnership sharing profits and losses in the ratio 3/5: 2/5, respectively. The following is their trial balance as of 31 December 2008.DrCr$$Buildings (cost $105,000)80,000Fixtures at cost4,100Provision for depreciation: Fixtures2,100Debtors30,700Creditors13,295Cash at bank3,065Stock at 01 January 200831,370Sales181,555.50Purchases105,000Carriage outwards1,705Discounts allowed310Loan interest: M. Money1,950Office expenses2,380Salaries and wages28,904.50Bad debts816Provision for doubtful debts700Loan from M. Money32,500Capitals: Shoes50,000Socks37,500Current accounts: Shoes2,050Socks600Drawings: Shoes15900Book14,100320,300.5320,300.5i. Stock, 31 December 2008, $35,105ii. Expenses to be accrued: Office Expenses $107.50; Wages $360iii. Depreciate fixtures 15 percent on reducing balance basis, buildings $2,500iv. Reduce provision for doubtful debts to $625v. Partnership salary: $15,000 to Shoes. Not yet enteredvi. Interest on drawings: Shoes $450; Socks $300vii.…
Galang and Hizon are partners who have capitals of P600,000 and P480,000 sharing profits in the ratio of 3:2. Isleta is admitted as a partner upon investing P500,000 for a 25% interest in the firm, profits to be shared equally. Given the choice between asset revaluation and bonus methods, Isleta will Group of answer choices Be indifferent because the asset revaluation and bonus methods are the same Prefer asset revaluation method due to Isleta’s gain of P140,000 Prefer bonus method due to Isleta’s gain of P35,000 Prefer bonus method due to Isleta’s gain of P140,000
A, B and C are partners contributed the following: A- P6,000.00; B -P4,000; and C-industry. They agreed that the profits and losses shall be distributed as follows to wit: A-35%; B-25%, and C-40%. How shall the loss of the P10,000 be distributed? a. A- P6,000; B-P4,000; C-none b. A- P3,500; B - P2,500; C- P4,000 c. A- P3,333; B- P3,333; C- P3,333 d. A- P5,000; B-P2,500; C-none
Profit sharing to the Andara firm which got a loss of IDR 15,820,800, - which is a mustborne by Sani, Rina and Tika as allies involved. Profit formation and sharingin accordance with the agreement are as follows;1. Tika's share is 20% of profit / loss2. Sani and Rina get interest for the initial capital of IDR 2,500,0003. Sani gets a salary of IDR 100,000 / month and Rina IDR 150,000 / month4. The remainder is divided equally among Sani and Rina.Calculate the total partnership capital based on the profit sharing at the Andara firm!