Ahmed and Wahid are partners sharing profits and losses in the ratio of 3:1. Their Balance sheet ason March 31, 2021 is as follows.LiabilitiesAmount (RO)AssetsAmount (RO)Creditors210000 Cash17500Bills Payable70000 Debtors245000General Reserve140000 Stock1050000 Plant280000 BuildingsCapital:87500Ahmed350000Wahid140000 Profit & Loss Ac35000Bank Overdraft210000 Equipment210000Total1050000 Total1050000On April 01, 2021, they agreed to admit Khalid into the firm for 1/5th Share of future profits onthe following terms:a) Building is revalued at420000b) Stock is revalued at75250c) Goodwill is raised at140000d) Provision for bad debts is to be made at 5%e) Khalid has to bring in a Capital175000f) Khalid was unable to bring the amount of goodwillPass Journal Entries and Prepare Revaluation Account, Capital Accounts and the Balance Sheet of thereconstituted firm.

Revaluation of the account is mandatory when there is an admission of a new partner in the business.…

Answered: Ahmed and Wahid are partners sharing…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 31P

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Chan, Tan and Eric were in partnership sharing profits and losses in the ratio Chan 2/3, Tan 1/4 and Eric 1/12. Their summarized Balance Sheet as at 31 October 2019 was as follows:                                                                         $$$                  $ $ $               $$$ Fixed Assets (at Book Value) Premises                                                                                  120 000 Machinery                                                                               60 000 Motor Vehicle                                                                         9 000               189 000 Current Assets Stock                                                                           14 200 Debtors                                               18 000 less Provision for Doubtful Debts      360                 17 640 Bank                                                                            16 160             48 000 237 000 Capital Accounts Chan…
Chan, Tan and Eric were in partnership sharing profits and losses in the ratio Chan 2/3, Tan 1/4 and Eric 1/12. Their summarized Balance Sheet as at 31 October 2019 was as follows:                                                                         $$$                  $ $ $               $$$ Fixed Assets (at Book Value) Premises                                                                                  120 000 Machinery                                                                               60 000 Motor Vehicle                                                                         9 000               189 000 Current Assets Stock                                                                           14 200 Debtors                                               18 000 less Provision for Doubtful Debts      360                 17 640 Bank                                                                            16 160             48 000 237 000 Capital Accounts Chan…
Chan, Tan and Eric were in partnership sharing profits and losses in the ratio Chan 2/3, Tan 1/4 and Eric 1/12. Their summarized Balance Sheet as at 31 October 2019 was as follows:                                                                         $$$                  $ $ $               $$$ Fixed Assets (at Book Value) Premises                                                                                  120 000 Machinery                                                                               60 000 Motor Vehicle                                                                         9 000               189 000 Current Assets Stock                                                                           14 200 Debtors                                               18 000 less Provision for Doubtful Debts      360                 17 640 Bank                                                                            16 160             48 000 237 000 Capital Accounts Chan…
Chan, Tan and Eric were in partnership sharing profits and losses in the ratio Chan 2/3, Tan 1/4 and Eric 1/12. Their summarized Balance Sheet as at 31 October 2019 was as follows:                                                                         $$$                  $ $ $               $$$ Fixed Assets (at Book Value) Premises                                                                                  120 000 Machinery                                                                               60 000 Motor Vehicle                                                                         9 000               189 000 Current Assets Stock                                                                           14 200 Debtors                                               18 000 less Provision for Doubtful Debts      360                 17 640 Bank                                                                            16 160             48 000 237 000 Capital Accounts…
Chan, Tan and Eric were in partnership sharing profits and losses in the ratio Chan 2/3, Tan 1/4 and Eric 1/12. Their summarized Balance Sheet as at 31 October 2019 was as follows:                                                                         $$$                  $ $ $               $$$ Fixed Assets (at Book Value) Premises                                                                                  120 000 Machinery                                                                               60 000 Motor Vehicle                                                                         9 000               189 000 Current Assets Stock                                                                           14 200 Debtors                                               18 000 less Provision for Doubtful Debts      360                 17 640 Bank                                                                            16 160             48 000 237 000 Capital Accounts…
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…
Tim and Ray are partners in Double Good Trading. They share the profits and losses equally. The balances extracted from their books as at 31 December 2020 are shown below: $ $ Capital Accounts: Tim 60000 Ray 60000 Current Accounts: Tim 3000 Ray 5000 Drawings: Tim 10000 Ray 10000 Closing inventory 26000 Motor vehicles 80500 Cash 3250 Bank 7460 Trade Debtors 25860 Trade Creditors 28220 Profit & Loss Account for 2020 16850 168070 168070 Additional information: i. After the Profit and Loss Account was prepared, Tim realised that there was an accrued utilities charge amounting to $1,200 that was not recorded. ii. The interest on capital is at 6% per annum. iii. The interest on drawings is at 8% per annum. iv. Tim is to be paid a salary of $24,000 per annum Required: Prepare the Profit and Loss Appropriation Account for the year ended 31 December 2020, and the…
On January 02, 2019, the business assets and liabilities of Gail Anne & Precious were as follows: Gail AnnePrecious CashP28,000P62,000 Receivables 200,000 600,000 Inventories 120,000 200,000 PPE 650,000 535,000 Other Assets 2,000 3,000 Accounts Payable 180,000 250,000 Notes Payable 200,000 350,000 Gail Anne and Precious agreed to form a partnership by contributing their net assets subject to the following adjustments: ➢ Receivables of P20,000 in Gail Anne’s books and P40,000 in Precious’ books are uncollectible ➢ Inventories of P6,000 and P7,000 in the respective books of Gail Anne and Precious are worthless ➢ Other assets in both books are to be written off ➢ Accrued interest on notes payable equal to 10% is to be established. The note payable of Gail Anne was dated August 01, 2018 while that of Precious, was dated April 01, 2018. The balances of selected accounts after the formation are: Assets…
Lady and Gaga are partners sharing profits and losses in the ratio of 7:3, respectively. On October 1, 2021, they decided to liquidate the business when the account balances are Debit Credit Cash 50,000 Non-cash Assets 150,000 Liabilities 50,000 Lady, Capital 90,000 Gaga, Capital 60,000 During the same month, the non-cash assets were sold for 100,000. After paying the liabilities, Lady and Gaga, in final settlement of their interest, would receive cash of a. 105,000 and 45,000, respectively b. 90,000 and 60,000, respectively c. 55,000 and 45,000, respectively d. 70,000 and 30,000, respectively
NEED ASAP. Solve correctly and show your computations. Ada, Bea, Cindy and Diane are partners, sharing earnings in the ratio of 3/21, 4/21, 6/21 and 8/21. The balances of their capital accounts on December 31, 2020 are: Ada, P10,000, Bea, P250,000; Cindy, P250,000; and Diane, P90,000. The partners decide to liquidate and they accordingly convert the noncash assets into cash. After paying the liabilities amounting to P60,000, they have P222,000 to divide. How much cash Bea should receive? A. P0 B. P138,800 C. P83,200 D. P44,000
The December 31, 2020 Statement of Financial Position of the Alyza, Angiela, and Pamela Partnership is summarized as follows:Cash P100,000 Angiela, Loan P100,00Other assets, at cost 500,000 Alyza, Capital 100,00Angiela, Capital 200,000Pamela, Capital 200,000P600,000 P600,000The partners share profits and losses as follows: Alyza, 20%; Angiela, 30%; and Pamela, 50%, Angiela is retiring from the partnership and the partners have agreed that “other assets” should be adjusted to their fair value of P600,000 at December 31, 2020. They further agreed that Angiela will receive P244,000 cash for his partnership interest exclusive of the loan, which is to be paid in full. No goodwill implied by Angiela’s payment will be recorded:After Pamela’s retirement, the capital balances of Alyza and Pamela, respectively, will be:a. P116,000 and P240,000 c. P100,000 and P200,000b. P101,714 and P254,286 d. P73,143 and P182,857
Dasal, Kho, Papasa, and Akho are partners sharing earnings in the ratio of 4:5:4:7. The balance of their capital accounts on December 31, 2019 are as follows: Dasal, P4,000; Kho, P20,000; Papasa, P20,000; and Akho, P8,000. The partners decided to liquidate, and they accordingly convert all non-cash assets into P24,000 cash. After paying the liabilities amounting toP4,000, they have P22,000 to divide. Assume that a debit balance in any partner's capital is uncollectible. How much did Kho receive in the final distribution ofcash?

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