Show how the following items will appear in the capital accounts of the partners Ali and Ahmed when their capital is Fixed Ahmed(R. Particulars Ali (R.O ) Capital on 01.01.2015 90,000 70,000 Drawings during 12,000 9,000 2015-2016 Interest on Drawings 360 270 Interest on Capital 5,400 4,200 Partner's salary 12,000 --- Commission 6,000 ---- Share of profit for 6,000 4,000 2015-16

Show how the following items will appear in the capital accounts of the partners Ali and Ahmed when their capital is Fixed Ahmed(R. Particulars Ali (R.O ) Capital on 01.01.2015 90,000 70,000 Drawings during 12,000 9,000 2015-2016 Interest on Drawings 360 270 Interest on Capital 5,400 4,200 Partner's salary 12,000 --- Commission 6,000 ---- Share of profit for 6,000 4,000 2015-16

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following are the condensed balance sheets of G&N Partnership at August 30, 2016, at which date Ellery is to be admitted with a 30% interest in capital for an investment of 55,000. Book Value Cash $ 20,000 Other assets 503,000 Total assets $ 523,000 Current liabilities 54,000 Non current liabilities 269,000 Gemmo, capital 120,000 Norma, capital 80,000 Total equities $ 523,000 Fair Value Cash $ 20,000 Other assets 417,000 Total assets 437,000 Current liabilities $ 54,000 Non current liabilities 275,000 Gemmo and Norma share profits at 60% and 40%, respectively. Required: Choose the correct answer with solution. 1. What will be the…
The following are the condensed balance sheets of G&N Partnership at August 30, 2016, at which date Ellery is to be admitted with a 30% interest in capital for an investment of $55,000. Book Value Cash $20,000 Other assets 503,000 Total assets $523,000 Current liabilities $54,000 Non current liabilities 269,000 Gemmo, capital 120,000 Norma, capital 80,000 Total equities $523,000 Fair Value Cash $20,000 Other assets 417,000 Total assets 437,000 Current liabilities $54,000 Non current liabilities 275,000 Gemmo and Norma share profits at 60% and 40%, respectively. Required: 1. What will be the respective capital balances of Gemmo, Norma, and Ellery after the new partner's admission.