S, K and P are in a Partnership business as Machinery Manufacturers. They share Profits as 4:3:3. The following Balances was extracted on December 31, 2021. Particulars Cash at Bank Purchase of Raw Material Discount (Dr) Rent and Insurance Factory Expenses Office Expenses Sundry Debtors Furniture Telephone Opening stock of Raw Material Carriage inwards Particulars 25,760 Capital Accounts 1,200,000 54,400 36,960 Commission Received. 152,000 Sundry Creditors 9,600 Sales 51,200 25,600 2,400 94,400 384,000 SHP 92,800 54,400 51,200 19,200 100,800 2,080,000
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- Question # 02A, B and C were partners. They share profit and losses in the ratio of 2:1:2. Their balance sheet was as under:AssetsCash and Bank Accounts Receivable Merchandise InventoryFurniture and FixtureEquities33,000 Accounts Payable 29,000 Notes Payable 26,000 A’s Capital24,000 B’s Capital C’s Capital112,0004,000 8,000 40,00020,000 40,000 112,000The partner decided to dissolve the firm.Required:Given entries in general journal to record the dissolution of the firm considering the following transaction.a) Cash Rs. 25,000 was collected from debtors in full settlement.b) Cash Rs. 72,000 received from the sale of inventory and furniture and fixture.c) Paid off the liabilities in full.d) All the available balance of cash after considering the above transaction distributed among thepartners.6. The following balances have been taken from the balance sheet of a partnership firm as atDec. 31, 2020:Debit Balances:Cash Rs. 325,000, Accounts Receivable Rs. 300,000, Merchandise Inventory Rs. 575,000,Furniture Rs. 300,000Credit Balances:Allowance for bad debt Rs. 30,000, Allowance for depreciation-Furniture Rs. 120,000, AccountsPayable Rs. 50,000, X Capital Rs.500,000, Y Capital Rs. 600,000, Z Capital Rs. 200,000 The partners were sharing profit and loss in their capital ratio. On the mentioned date theydecided to liquidate the partnership firm and the following transactions were performed:a. Rs. 250,000 was collected as full and final settlement of accounts receivable.b. Merchandise inventory was sold for Rs. 500,000 cash.c. Furniture was sold for cash Rs. 145,000d. Accounts Payable was fully paid.e. Loss on liquidation was distributed among the partners.f. Final Settlement to the partners was made.Required:Record the above transactions in General Journal57 On December 31, 20x20, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 6:1:3 of partners A, B and C respectively, revealed the following data: Cash P1,000,000 Other liabilities P2,000,000 Receivable from A 500,000 Payable to B 1,000,000 Other noncash assets 2,000,000 Payable to C 100,000 A, Capital 700,000 B, Capital (650,000) C, Capital 350,000 On January 1, 20x21, the partners decided to liquidate the partnership. All partners are legally declared to be personally insolvent. The other noncash assets are sold for P1,500,000. Liquidation expenses amounting to P100,000 were incurred. How much cash was received by C at the end of partnership liquidation?
- 26. Salary expense has been incurred but not yet paid to employees will be: a. Added to share of profits of partners b. Added to corresponding expense in the income statement c. Added to current assets in the balance sheet d. Added to partners' capital27- Salary expense has been incurred but not yet paid to employees will be: a. Added to partners' capital b. Added to corresponding expense in the income statement c. Added to current assets in the balance sheet d. Added to share of profits of partnersPROBLEM 1On June 30, 20x8 A, the sole proprietor of A Inc, expandsthe company and establishes a partnership with B and C. Thepartners plan to share profits and losses as follows: A, 50%;B, 25% and C 25%. They also agree that the beginning capitalbalances of partnership will reflect this same relationship.A asked B to join the partnership because his many businesscontacts are expected to be valuable during the expansion. B iscontributing P40,000 and a building that has an original cost ofP520,000, book value of P420,000, tax assessment of P310,000 andfair value of P370,000. The building is subject to a P242,000mortgage that the partnership will assume. C is contributingP66,000 and marketable securities costing P252,000 but arecurrently worth P345,000.A's investment in the partnership is his business. He plansto pay off the notes with his personal assets. The other partnershave agreed that the partnership will assume the accounts payable.The balance sheet for the A Inc follows:…
- 37. AAA, BBB, CCC, and DDD are partners sharing profits in the ratio of 3/21, 4/21, 6/21,and 8/21. Their capital balances on December 31, 2030 are as follows: AAA P 500BBB 12,500CCC 12,500DDD 4,500 The partners decide to liquidate their firm and they accordingly convert the noncash assets into P11,600 cash. After paying liabilities of P1,500, they have P11,100 to divide. How much was the distribution to partner CCC?a. P0b. P3,560c. P4,160d.P7,10028) Salary expense has been incurred but not yet paid to employees will be: a. Added to corresponding expense in the income statement b. Added to partners' capital c. Added to current assets in the balance sheet d. Added to share of profits of partnersShow Your Solutions 1) The following condensed Balance Sheet was prepared for Bi, Na, Ta partnership on March 31,200B: Cash P 30,000 Liabilities P 60,000 Other Assets P 190,000 Bi, Capital P 44,000 Na, Capital P 66,000 Ta, Capital P 50,000 P 220,000 P 220,000 The other assets were sold for P50,000. Profits are shared 4;4;2, for Bi, Na, and Ta, respectively. Bi is insolvent . The amount of cash received by Na was: 2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. How much was the loss on realization? 3) After realization…
- Question 1 Mary, Jane and Susan are in partnership sharing profits and losses in the ratio 2:2:1 respectively. The following was their balance sheet as at 31 December 2018: Cost Depreciation. NBV Non-Current Assets $ $ $ Premises 42,000 32,000 10,000 Motor Vehicles 14,000 10,000 4,000 Furniture and Fittings 6,000 2,000 4,000 Current Assets 62,000 44,000 18,000 Inventory 24,000 Trade Receivables 6,800 30,800 Capital and Liabilities 48,800 Capitals: Mary 7,000…7. A, B, and C are partners in an accounting firm. Their capital account balances at the year-end were A P120,000; B P140,000; C P80,000. They share profits and losses on a 3:3:4 ratio, after the following special terms: Interest of 10% shall be paid on that portion of a partner's capital in excess of P100,000. Quarterly salaries of P5,000, P5,000 and P6,000 shall be paid to partners A, B, and C, respectively. Partner C is to receive a bonus of 10% of net income after salaries, interest and bonus. Assuming a net income of P60,000 for the year, the total profit share of partner C was:Q15 Profit or loss on a joint venture is shared by the co-ventures __________. Select one: a. as per the agreement b. equally c. as per managerial involvement in the operations of the joint venture d. in the capital ratio