Bel and May have capital balances of P900,000, and P1,300,000 as of December 31, 2020. Bel and May share 40% and 60% in the profits and losses. The partners believe that the following assets should be adjusted Accounts receivable - (book value)- P240,000; (market value) P200,000 Inventory -(book value)- P400,000, (market value) P450,000 Len is interested in buying 40% interest from anyone of the partner. After recording the adjustments, the revised capital of Bel is Select the correct response: P904,000 P910,000 P900,000 P906,000

Bel and May have capital balances of P900,000, and P1,300,000 as of December 31, 2020. Bel and May share 40% and 60% in the profits and losses. The partners believe that the following assets should be adjusted Accounts receivable - (book value)- P240,000; (market value) P200,000 Inventory -(book value)- P400,000, (market value) P450,000 Len is interested in buying 40% interest from anyone of the partner. After recording the adjustments, the revised capital of Bel is Select the correct response: P904,000 P910,000 P900,000 P906,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 11MCQ

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On November 10, 2020, Maher, Saher, and Taher, partners of Maher, Saher, & Taher LLP, had capital account balances of $40,000, $50,000, and $18,000, respectively, and shared net income and losses in a 4 : 2 : 1 ratio respectively. the Capital per unit of income sharing ratio for Maher would be: a. $40,000. b. $10,000. c. $20,000. d. $25,000.
Babes and Honey, on January 1, 2022, have respective capital balances of P300,000 and P500,000. Babes invested an additional P300,000 on June 30, while Honey invested an additional P600,000 on November 1. Babes had a capital withdrawal of P200,000 on September 30. The partners allow respective monthly salaries of P5,000 and P6,000, credit of 15% interest on average capital balances, and share any residual earnings equally.If the net income is P250,000 for 2022, Honey’s distributive share would be:
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Partners Biore and Selishana each have P450,000 capital balance and share profits and losses in a 3:2 ratio. Cash equals P150,000, non-cash assets equal P1,500,000 and liabilities equal P750,000. If non-cash assets are sold for P1,000,000, the change in Selishana's capital account will be:
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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
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AAA, BBB and CCC are partners sharing profits in the ratio of 5:3:2, respectively. As of December 31, 2021, their capital balances were P87,800 for AAA, P80,000 for BBB and P67,200 for CCC. On January 1, 2022, the partners admitted ODD as a new partner and according to their agreement; DDD will contribute P80,000 in cash to the partnership and also pay P10,000 for 15% of BBB's share. DDD will be given a 20% share in profits, while the original partners' share will be proportionately the same as before. After the admission of DDD, the total capital will be P330,000 and DDD's capital will be P70,000. What is the balance of BBB's capital, after the admission of CCC:
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Byxie and Katey formed a partnership on March 1, 2022 with Byxie investing the following: Inventory - cost of P100,000; current fair value of P150,000 Marketable securities - cost of P50,000; current fair value of P120,000 Equipment - cost of P500,000; book value of P300,000; and market value of P250,000 Land - cost of P400,000; current fair value of P550,000 Notes Payable (secured by equipment) - P100,000 assumed by partnership Katey was required to invest cash half of Byxie's investment. REQUIRED: Give two entries to record the investments of the partners.