Case AB A C D Partner's Capital X Y Z Goodwill in business books Not available 50,000 70,000 30,000 OMR 120,000 90,000 82,000 Actual value of goodwill 60,000 75,000 45,000 30,000 X,Y and Z share profits and losses at 1/4, 1/4 and 2/4 respectively. Partner X decide to leave the partnership. You are required to show: A) Journal entries necessaries if goodwill account to be opened for all cases. B) Capital accounts for all cases

Case AB A C D Partner's Capital X Y Z Goodwill in business books Not available 50,000 70,000 30,000 OMR 120,000 90,000 82,000 Actual value of goodwill 60,000 75,000 45,000 30,000 X,Y and Z share profits and losses at 1/4, 1/4 and 2/4 respectively. Partner X decide to leave the partnership. You are required to show: A) Journal entries necessaries if goodwill account to be opened for all cases. B) Capital accounts for all cases

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 53P

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D1, D2, and D3 are partners whose capital balances are P250,000, 150,000, and P125,000 respectively and their profit ratio are 50:25:25 respectively. D4 is admitted into the partnership by purchasing 1/3 equity share of D2 for P60,000 and investing P200,000 cash to the partnership. The partners agree to the total capitalization of P750,000, 1/3 of which is D4 capital credit and share in profits and the old partners will share in the remaining profit based on their old ratio. What is the capital balance of D1after the admission of D4?
4. X, Y, and Z have capital balances of P40,000.00, P50,000.00, and P18,000.00 and a profit – sharing ratio 4:2:1, respectively. If X received P8,000.00 upon liquidation of the partnership, the total amount received by partner Z was: a. P10,000.00 b. P 8,000.00 c. P34,000.00 d. P -0- 5. Assume the same facts in No. 4, above, except that X received P26,000.00 as a result of the liquidation. The total gain/loss on realization amounted to: a. P 3,500.00 b. P14,000.00 c. P 7,000.00 d. P24,500.00
A partnership has the following capital balances: Comprix (35% of gains and losses) . . . . . . . . . . $150,000Heflin (40%) . . . . . . . . . . . .. . . 300,000Kaplan (25%) . . . . . . . . . . . . . 320,000 Mahar is going to pay a total of $200,000 directly to these three partners to acquire a 25 percent ownership interest from each. Goodwill is to be recorded. What is Heflin’s capital balance after the transaction? Choose the correct. a. $225,000b. $234,000c. $312,000d. $360,000
On December 31, 2030, the Statement of Financial Position of ABC Partnership provided thefollowing data with profit or loss ratio of 1:6:3:Current Assets P2,600,000 Total Liabilities P600,000Noncurrent Assets 4,000,000 A, Capital 2,800,000B, Capital 1,400,000C, Capital 1,800,000 On January 1, 2031, D is admitted to the partnership by investing P2,000,000 to the partnership for 20% capital interest. If an existing asset of ABC partnership is not properly valued, what is the capital balanceof B after the admission of D?a. P1,640,000b. P2,600,000c. P1,920,000d. P1,560,000
A partnership has the following capital balances: Henry (50% of gains and losses) . . . . . . . . . . . . $ 135,000Thomas (30%) . . . . . . . . . . . .. . 85,000Catherine (20%) . . . . . . . . . . . . 80,000 Anne is going to invest $125,000 into the business to acquire a 40 percent ownership interest. Goodwill is to be recorded. What will be Anne’s beginning capital balance? Choose the correct. a. $125,000b. $170,000c. $200,000d. $245,000
Villon invested P600,000 for a 30% interest in a partnership in which the other partner havecapital totaling P1,000,000 before admitting Villon. what is Villon’s capitalbalance? a. P480,000 b. P600, 000 c. P300,000 d. P720,000
1. X is indebted to the partnership for P10,000.00 and to the managing partner, Y, for P20,000.00. Y was able to collect from X, P6,000.00. How much should Y give the partnership? a. P2,500.00 b. P2,000.00 c. P3,000.00 d P1,500.002. The ZXC Partnership is very successful. However, it was later on discovered that Partner T, the accountant of the partnership, was working as a part-time accountant in a university. What is the remedy of the partnership against T? a. None of the above b. .The partnership may compel A to remit all his salaries. c. The partnership may compel A to resign in the university. d. The partnership may file a criminal complaint of estafa against A
On December 31, 2030, the Statement of Financial Position of ABC Partnership provided thefollowing data with profit or loss ratio of 5:1:4:Current Assets P 3,000,000 Total Liabilities P 1,000,000 Noncurrent Assets 4,000,000 A, Capital 2,200,000B, Capital 2,400,000C, Capital 1,400,000 On January 1, 2030, D is admitted to the partnership by investing P1,000,000 to the partnership for 10% capital interest. The total agreed capitalization of the new partnership is P6,000,000. What is the share of A in the asset impairment?a. P240,000b. P160,000c. P300,000d. P500,000
c. Neil has a partnership basis of $100,000. He receives $40,000 of cash, inventory with a basis to the partnership of $30,000, and a capital asset with a partnership basis of $20,000. The inventory and capital asset have fair market values of $20,000 and $30,000, respectively. He will recognize no gain or loss of $fill in the blank 5f4d5d0af074052_2. The capital asset is allocated a basis of $fill in the blank 5f4d5d0af074052_3 and the inventory will have a basis of $fill in the blank 5f4d5d0af074052_4. d. Oscar has a partnership basis of $40,000. He receives a distribution of $10,000 of cash and an account receivable with a basis of $0 to the partnership (value is $15,000). He will recognize a of $fill in the blank 7faaeffda02801c_2.
On December 31, 2030, the Statement of Financial Position of ABC Partnership provided thefollowing data with profit or loss ratio of 1:6:3:Current Assets P2,000,000 Total Liabilities P1,200,000Noncurrent Assets 24,000,000 A, Capital 1,800,000B, Capital 1,600,000C, Capital 1,400,000 On January 1, 2031, D is admitted to the partnership by purchasing 40% of the capital interest ofB at a price of P1,000,000. What is the capital balance of B after the admission of D on January 1, 2031? a. P1,180,000b. P960,000c. P840,000d. P600,000
On December 31, 2030, the Statement of Financial Position of ABC Partnership provided the following data with profit or loss ratio of 1:6:3:Current Assets P2,600,000 , Total Liabilities P 600,000Noncurrent Assets 4,000,000 A, Capital 2,800,000B, Capital 1,400,000C, Capital 1,800,000 On January 1, 2031, D is admitted to the partnership by investing P2,000,000 to the partnership for 20% capital interest. If all the assets of the existing partnership are properly valued, what is the capital balance of C after the admission of D?a. P1,920,000b. P1,800,000c. P1,620,000d. P2,400,000
2. The following condensed balance sheet is presented for the partnership of Joseph and Emman, whoshare profits and losses in the ratio of 60:40, respectively:Other Assets P500,000Emman, loan 20,000Total P520,000Accounts Payable P120,000Joseph, Capital 220,000Emman, Capital 180,000Total P520,000The partners decided to liquidate the partnership. If the assets are sold for P345,000, what amount ofthe available cash should be distributed to Emman? Show your solution.