Basant, Hemant and Sarat were partners in a firm sharing profits and losses in :3, respectively. The firm was dissolved and Hemant was appointed to realis distribute the proceeds. Hemant is to receive 5% commission on the amount r of assets and to bear all expenses of realisation. 20. Balance Sheet on the date of dissolution was as under : Liabilities Assets Creditors Basant's Capital Hemant's Capital 59,000 30,000 20,000 Cash Debtors Less : Provision 45,5 2,5 Stock
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- Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are: Carney, capital. . . . . . . . . .. . . $60,000Pierce, capital. . . . . . . . . . . . . . 27,000Menton, capital. . . . . . . . . . . . 43,000Hoehn, capital. . . . . . . . . . . . . 20,000 Which of the following statements is true? Choose the correct.a. The first available $2,000 will go to Hoehn.b. Carney will be the last partner to receive any available cash.c. The first available $3,000 will go to Menton.d. Carney will collect a portion of any available cash before Hoehn receives money.Ebanks, Brown, and Thomas are partners. They carry on a business jointly as EBT surveyors and share profits and losses in the ratio 25:45: 30. The trading account profit as at 31 December 2021 was $6,500,000 after charging a nominal tax of $750,000. Notes: The partners receive interest on their capital accounts at 9.5 % on the balance of their partner capital at the end of the budget year. The interest on the capital account was not included in the income statement. Include in the income statement is $80,000 salary per month for each partner. The partnership paid motor vehicle expenses for vehicles owned by the partners as follows: Ebanks -$ 50,000 Brown - $80,000 Thomas - $130,000 The partners did not use the vehicles for the partnership business. Profit on disposal was $180,000. Depreciation on plant and machinery for the year was $900,000. In recognition of the new IFRS 9 standard, a provision for bad…Ebanks, Brown, and Thomas are partners. They carry on a business jointly as EBT surveyors and shareprofits and losses in the ratio 25:45: 30. The trading account profit as at 31 December 2021 was $6,500,000 after charging a nominal tax of$750,000. Notes: 1. The partners receive interest on their capital accounts at 9.5 % on the balance of their partnercapital at the end of the budget year. The interest on the capital account was not included in theincome statement. 2. Include in the income statement is $80,000 salary per month for each partner. 3. The partnership paid motor vehicle expenses for vehicles owned by the partners as follows: - Ebanks -$ 50,000 - Brown - $80,000 - Thomas - $130,000 The partners did not use the vehicles for the partnership business. 4. Profit on disposal was $180,000.5. Depreciation on plant and machinery for the year was $900,000.6. In recognition of the new IFRS 9 standard, a provision for bad debt of $75,000 was made. Thisrepresents a % of the business…
- Ebanks, Brown, and Thomas are partners. They carry on a business jointly as EBT surveyors and shareprofits and losses in the ratio 25:45: 30. The trading account profit as at 31 December 2021 was $6,500,000 after charging a nominal tax of$750,000. Notes: 1. The partners receive interest on their capital accounts at 9.5 % on the balance of their partnercapital at the end of the budget year. The interest on the capital account was not included in theincome statement. 2. Include in the income statement is $80,000 salary per month for each partner. 3. The partnership paid motor vehicle expenses for vehicles owned by the partners as follows: - Ebanks -$ 50,000 - Brown - $80,000 - Thomas - $130,000 The partners did not use the vehicles for the partnership business. 4. Profit on disposal was $180,000.5. Depreciation on plant and machinery for the year was $900,000.6. In recognition of the new IFRS 9 standard, a provision for bad debt of $75,000 was made. Thisrepresents a % of the business…Ebanks, Brown, and Thomas are partners. They carry on a business jointly as EBT surveyors and shareprofits and losses in the ratio 25:45: 30. The trading account profit as at 31 December 2021 was $6,500,000 after charging a nominal tax of$750,000. Notes: 1. The partners receive interest on their capital accounts at 9.5 % on the balance of their partnercapital at the end of the budget year. The interest on the capital account was not included in theincome statement. 2. Include in the income statement is $80,000 salary per month for each partner. 3. The partnership paid motor vehicle expenses for vehicles owned by the partners as follows: - Ebanks -$ 50,000 - Brown - $80,000 - Thomas - $130,000 The partners did not use the vehicles for the partnership business. 4. Profit on disposal was $180,000.5. Depreciation on plant and machinery for the year was $900,000.6. In recognition of the new IFRS 9 standard, a provision for bad debt of $75,000 was made. Thisrepresents a % of the business…Ebanks, Brown, and Thomas are partners. They carry on a business jointly as EBT surveyors and shareprofits and losses in the ratio 25:45: 30. The trading account profit as at 31 December 2021 was $6,500,000 after charging a nominal tax of$750,000. Notes: 1. The partners receive interest on their capital accounts at 9.5 % on the balance of their partnercapital at the end of the budget year. The interest on the capital account was not included in theincome statement. 2. Include in the income statement is $80,000 salary per month for each partner. 3. The partnership paid motor vehicle expenses for vehicles owned by the partners as follows: - Ebanks -$ 50,000 - Brown - $80,000 - Thomas - $130,000 The partners did not use the vehicles for the partnership business. 4. Profit on disposal was $180,000.5. Depreciation on plant and machinery for the year was $900,000.6. In recognition of the new IFRS 9 standard, a provision for bad debt of $75,000 was made. Thisrepresents a % of the business…
- Ebanks, Brown, and Thomas are partners. They carry on a business jointly as EBT surveyors and shareprofits and losses in the ratio 25:45: 30. The trading account profit as at 31 December 2021 was $6,500,000 after charging a nominal tax of$750,000. Notes: 1. The partners receive interest on their capital accounts at 9.5 % on the balance of their partnercapital at the end of the budget year. The interest on the capital account was not included in theincome statement. 2. Include in the income statement is $80,000 salary per month for each partner. 3. The partnership paid motor vehicle expenses for vehicles owned by the partners as follows: - Ebanks -$ 50,000 - Brown - $80,000 - Thomas - $130,000 The partners did not use the vehicles for the partnership business. 4. Profit on disposal was $180,000.5. Depreciation on plant and machinery for the year was $900,000.6. In recognition of the new IFRS 9 standard, a provision for bad debt of $75,000 was made. Thisrepresents a % of the business…THEY APPOINTED MARAWI AS MANAGING PARTNER, WHO WILL RECEIVE A SALARY OF P 10,000 PER MONTH. MITOR WILL BE AN INDUSTRIAL PARTNER WHO WILL RECEIVE A JUST SUM OF 10% OF THE NET PROFITS. MISERIA ON THE OTHER HAND , CHOSE TO BE A LIMITED PARTNER AND THE LIQUIDATING PARTNER. THE PROFITS WILL BE DIVIDED ACCORDING TO THEIR CAPITAL CONTRIBUTION AFTER DEDUCTING THE SALARIES OF MANAGING PARTNER MARAWI AND 10% SHARE OF MITOR. REQUIRED: Prepare the Consolidated Journal Entrytephanie Calamba and Allan Brillantes decided to form a partnership. They agreed that Calamba will invest P200,000 and Brillantes, P300,000. Calamba will devote full time to the business, and Brillantes on part-time only. The following plans for the division of profits are being considered: Equal division In the ratio of original investments In the ratio of time devoted to the business Interest of 10% on original investments and the remainder in the ratio of 3:2 Interest of 10% on original investments, salary allowances of P340,000 to Calamba and P170,000 to Brillantes, and the remainder equally. Plan (e), except that Calamba is also to be allowed a bonus equal to the 20% of the amount by which profit exceeds the salary allowances. Determine the partners’ share in profit or loss for each of the situations above assuming: (1) Profit of P1,500,000 (2) Profit of P660,000 Question Stephanie Calamba and Allan Brillantes decided to form a partnership. They agreed that Calamba will invest…
- CC, PP and AA, accountants agree to form a partnership and to share profits in the ratio of 5:3:2. They also agreed that AA is to be allowed a salary of P28,000, and that PP is to be guaranteed P21,000 as his share of the profits, during the first operatioms, income from fees are P180,000, while expense total P96,000. What amount of net income should be credited to each partner's capital account?AQUA and PLANT with capital balances of P100,000 and P82,000,respectively. They share profits and losses in the ratio of 3:2, respectively. The partners decided to liquidate the partnership. The firm’s liabilities amount to P150,000, including P16,000 owing to DDS and P14,000 to DU. After realization of assets, the cash on hand amounted to P155,000. How much was the loss on realization?Partners Kitty and Puppy, who share equally in profits and losses, have the following balance sheet as of December 31 of the current year.Cash 120,000 Payables 172,000Receivables 100,000 Accum Dept’n. 8,000Inventory 140,000 Kitty, Capital 140,000PPE 80,000 Puppy, Capital 120,000Total 440,000 Total 440,000 They agreed to incorporate their partnership, with the new corporation absorbing the net assets after the following adjustments: provision of allowance for bad debts of P10,000; restatement of the inventory atits current fair value of P160,000; and, recognition of further depreciation on equipment of P3,000. The corporation’s capital stock is to have a par value of P100, and the partners are to be issued corresponding total shares equivalent to their adjusted capital balances.…