King, Queen and Prince are partners sharing profit and loss in the ratio of 1:1:2 respectively. Their capital balances are P500,000, P300,000 and P200,000 respectively. Liabilities amounted to P200,000. There is also a loan payable to Prince, P20,000. _______ If the non-cash assets were sold at a gain of P150,000. How much is the cash proceeds? a.P1,100,000 c. P1,400,000 b.P800,000 d. P1,050,000

King, Queen and Prince are partners sharing profit and loss in the ratio of 1:1:2 respectively. Their capital balances are P500,000, P300,000 and P200,000 respectively. Liabilities amounted to P200,000. There is also a loan payable to Prince, P20,000. _______ If the non-cash assets were sold at a gain of P150,000. How much is the cash proceeds? a.P1,100,000 c. P1,400,000 b.P800,000 d. P1,050,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

King, Queen and Prince are partners sharing profits and loss in the ratio of 1:1:2 respectively. Their capital balances are 500,000 for King, 300,000 for Queen, and 200,000 for Prince. Liabilities amounted to 200,000. There is also a loan payable to Prince, 50,000. The cash balance amounted to 300,000 and it increased to 1,400,000 as a result of the sale of the non-cash assets. How much cash will Prince receive? A.) 200,000. B). 250,000 C). 275,000 D.) 325,000
King, Queen and Prince are partners sharing profits and loss in the ratio of 1:1:2 respectively. Their capital balances are 500,000 for King, 300,000 for Queen, and 200,000 for Prince. Liabilities amounted to 200,000. There is also a loan payable to Prince, 50,000. The cash balance amounted to 300,000 and it increased to 1,400,000 as a result of the sale of the non-cash assets. How much is the non-cash assets of the partnership? 950,000 b. 1,250,000 c. 1,200,000 d. 900,000 How much is the cash proceeds? 1,100,000 b. 800,000 c. 1,400,000 d. 1,050,000 How much is the available cash for distribution to the partners? 1,400,000 b. 1,200,000 c. 1,150,000 d. 250,000 How much cash will Prince receive? 200,000 b. 250,000 c. 275,000 d. 325,000
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
Partners Baldecir and Magallanes each have a P300,000 capital balance and share profits and losses in a 3:1 ratio. Cash equals P100,000, non-cash assets equal P1,000,000 and liabilities equal P500,000. IF the non-cash assets are sold for P400,000 and both partners agreed to make up for any capital deficits with persona cash contributions, Magallanes eventually will receive cash of *
Jag, Lee and Bench are partners having the following capital balances of P 11,200, P13,000 and P5,800 respectively. Profits and losses are shared 4:2:1. if Jag receives a total of P3,200 in cash, how much will Bench received at this point?
The notes payable amount for Trent and Dana’s company totaled $55,000, and the accounts payable totaled $59,000. The total sale of noncash assets realized a gain of $7,400. If the partnership pays in full, how much will their creditors be paid? 1.$120,600 2.$106,600 3.$66,400 4.$114,000
Kaede, Itona, and Ritsu are partners with capital balances of P80,000, P200,000, and P120,000, respectively. Profits and losses are shared in a 3:2:1 ratio. Itona decided to withdraw and the partnership revalued its assets. The value of inventory was decreased by P20,000 and the value of land was increased by P50,000. Kaede and Ritsu then agreed to pay Itona P230,000 for his withdrawal from the partnership. Prepare the journal entry to record Itona’s withdrawal under the Bonus method, assuming the revaluation increase or decrease was agreed by all partners to be recognized. Asset revaluation method.
Rosy, Roland and Robert were partners with capital balances as at year end of P250,000; P350,000; P400,000, respectively. The partner's agreement stated that profit sharing will be based on year-end capital balances. If the net income for the year before 30% income tax amounted P280,000, how much will be the profit share of Roland ?
Roberto Orcajada and Ryan Morales are partners who share profits and losses equally. The credit balances of their Capital accounts before liquidation are P700,000 and P900,000, respectively. ... They sold all the noncash assets and paid all the partnership's liabilities, leaving a balance of P1,100,000 in cash. How much cash should be distributed to Roberto?
Charlie and Delta formed a partnership. Charlie invested cash worth P85,000 and a machine. On the other hand, Delta contributed cash worth P55,000 and an equipment which has a mortgage of P35.000 which Delta will pay personally The total capital after formation was P350,000. They also further agreed to reflect 55:45 ratio as to their capital balances respectively. No other investment or withdrawal occurred other than mentioned to reflect their capital ratio agreement. How much is the fair value of the machine?
On January 1, FRED and GEMMO formed a partnership by contributing cash of P300,000 and P360,000 , respectively . On August 1, Fred contributed an additional cash of P45,000 . On June 1 , Gemmo contributed machinery with a fair market value of P60,000 and a net book value of P90,000 when contributed . On July 1, Fred and Gemmo each withdrew 30,000 . 1. What is the average capital of Fred ? 2. What is the average capital of Gemmo?
A and B share profits and losses equally but they have decided to liquidate their partnership when their net assets amounted to P260,000, and capital balances of P170,000 and P90,000, respectively. If the noncash assets were sold for amount equal to its book value, what amount of cash should A and B receive?