Homework Help is Here – Start Your Trial Now!
Business
Accounting
Mintah and Hudah are in partnership, sharing profits and losses in the ratio 3:2. Their financial position as at 31* December 2018 is as follows: GHC GHC GHC Non-current Assets: Freehold Premises: cost 30,000 Fixtures and Fittings: Cost 5,000 Depreciation 4,000 1,000 Motor Vehicle: Cost 4,000 Depreciation 1,000 3,000 34,000 Current Assets: Receivables 20,000 Cash at Hand 600 20,600 Total Assets 54,600 Capital and Liabilities: Capital accounts Mintah 20,000 Hudah 2,500 22,500 Current accounts: Mintah 3,000 Hudah 500 3,500 Non-current Liabilities: Loan: Mintah 16,000 Current liabilities: Payables 12,600 Total liabilities 54,600

Mintah and Hudah are in partnership, sharing profits and losses in the ratio 3:2. Their financial position as at 31* December 2018 is as follows: GHC GHC GHC Non-current Assets: Freehold Premises: cost 30,000 Fixtures and Fittings: Cost 5,000 Depreciation 4,000 1,000 Motor Vehicle: Cost 4,000 Depreciation 1,000 3,000 34,000 Current Assets: Receivables 20,000 Cash at Hand 600 20,600 Total Assets 54,600 Capital and Liabilities: Capital accounts Mintah 20,000 Hudah 2,500 22,500 Current accounts: Mintah 3,000 Hudah 500 3,500 Non-current Liabilities: Loan: Mintah 16,000 Current liabilities: Payables 12,600 Total liabilities 54,600

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
See similar textbooks
icon
Related questions
Question

Answer all questions that is  a to d 

Show all working

Mintah and Hudah are in partnership, sharing profits and losses in the ratio 3:2. Their financial position as at 31s* December 2018 is as follows: GHC GHC GHC Non-current Assets: Freehold Premises: cost 30,000 Fixtures and Fittings: Cost 5,000 Depreciation 4,000 1,000 Motor Vehicle: Cost 4,000 Depreciation 1,000 3,000 34,000 Current Assets: Receivables 20,000 Cash at Hand 600 20,600 Total Assets 54,600 Capital and Liabilities: Capital accounts Mintah 20,000 Hudah 2,500 22,500 Current accounts: Mintah 3,000 Hudah 500 3,500 Non-current Liabilities: Loan: Mintah 16,000 Current liabilities: Payables 12,600 Total liabilities 54,600
Transcribed Image Text:Mintah and Hudah are in partnership, sharing profits and losses in the ratio 3:2. Their financial position as at 31s* December 2018 is as follows: GHC GHC GHC Non-current Assets: Freehold Premises: cost 30,000 Fixtures and Fittings: Cost 5,000 Depreciation 4,000 1,000 Motor Vehicle: Cost 4,000 Depreciation 1,000 3,000 34,000 Current Assets: Receivables 20,000 Cash at Hand 600 20,600 Total Assets 54,600 Capital and Liabilities: Capital accounts Mintah 20,000 Hudah 2,500 22,500 Current accounts: Mintah 3,000 Hudah 500 3,500 Non-current Liabilities: Loan: Mintah 16,000 Current liabilities: Payables 12,600 Total liabilities 54,600
Linda Co. is incorporated for the purpose of taking over the business. It is to acquire the Freehold Premises at a valuation of Ghc40,000 and the other assets (with the exception of cash and motor vehicles) at carrying amount. These values are to be introduced to Linda Co. books. The current liabilities are also taken over by the new company. The purchase consideration of Ghc60,000 is to be settled by 30,000 Ghc1 ordinary shares in Linda Co. and cash of Ghc30,000 obtained by a bank overdraft. Hudah is to take over both cars at a valuation of Ghc2,500 and the partners have agreed to divide the shares in their profit and loss sharing ratio. Mintah's loan is to be repaid in cash by the partnership. a) Prepare the Capital Account b) Prepare the Realization Account c) Prepare Linda Co. Account d) Prepare the Bank Account
Transcribed Image Text:Linda Co. is incorporated for the purpose of taking over the business. It is to acquire the Freehold Premises at a valuation of Ghc40,000 and the other assets (with the exception of cash and motor vehicles) at carrying amount. These values are to be introduced to Linda Co. books. The current liabilities are also taken over by the new company. The purchase consideration of Ghc60,000 is to be settled by 30,000 Ghc1 ordinary shares in Linda Co. and cash of Ghc30,000 obtained by a bank overdraft. Hudah is to take over both cars at a valuation of Ghc2,500 and the partners have agreed to divide the shares in their profit and loss sharing ratio. Mintah's loan is to be repaid in cash by the partnership. a) Prepare the Capital Account b) Prepare the Realization Account c) Prepare Linda Co. Account d) Prepare the Bank Account
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Segment Reporting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
SWFT Corp Partner Estates Trusts
SWFT Corp Partner Estates Trusts
Accounting
ISBN:
9780357161548
Author:
Raabe
Publisher:
Cengage
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
Individual Income Taxes
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SEE MORE TEXTBOOKS