The following condensed balance sheet is prepared for Sammy and Joker, who share profits and losses in the ratio of 60:40, respectively: Other assets P720,000 Sammy, loan 32,000 Total P752,000 Accounts Payable P192,000 Sammy, capital 312,000 Joker, capital 248,000 Total P752,000 Required: Choose the correct answer with solution. The partners have decided to liquidate the partnership. If the other assets are sold for P770,000, what amount of the available cash should be distributed to Sammy? a. P310,000 b. P312,000 c. P342,000 d. P390,000

The following condensed balance sheet is prepared for Sammy and Joker, who share profits and losses in the ratio of 60:40, respectively: Other assets P720,000 Sammy, loan 32,000 Total P752,000 Accounts Payable P192,000 Sammy, capital 312,000 Joker, capital 248,000 Total P752,000 Required: Choose the correct answer with solution. The partners have decided to liquidate the partnership. If the other assets are sold for P770,000, what amount of the available cash should be distributed to Sammy? a. P310,000 b. P312,000 c. P342,000 d. P390,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...

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The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $10,000 B. $5,000 C. ($12,000) In addition, show the resulting entries to each partners capital account.
Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances prior to Tammys admission are $50,000 each. Prepare a schedule showing how the bonus should be divided among the three, assuming the profit or loss agreement will be 1:3 once Tammy has been admitted and her contribution is: A. $20,000 B. $80,000 C. $50,000. In addition, show the resulting journal entries to each of the three partners capital accounts.
The partnership of Arun, Margot, and Tammy has been doing well. Arun wants to retire and move to another state for a once-in-a-lifetime opportunity. The partners capital balances prior to Aruns retirement are $60,000 each. Prepare a schedule showing how Aruns withdrawal should be divided assuming his buyout is: A. $70,000 B. $45,000 C. $60,000. In addition, show the resulting entries to the capital accounts of each of the three.
The partnership of Michelle, Amal, and Maureen has done well. The three partners have shared profits and losses in a 1:3 ratio, with capital balances of $60,000 each. Maureen wants to retire and withdraw. Prepare a schedule showing how the cost should be divided if Amal and Michelle decide to pay Maureen $70,000 for retirement of her capital account and the new agreement will share profits and losses 50:50.
The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have capital balances of $45,000 each. Prepare a schedule showing how the bonus should be divided if Ashanti joins the partnership with a $60,000 investment. The partners new agreement will share profit and loss in a 1:3 ratio.
The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: Cash . . . . . . . . . . . . . . . . . . . $ 50,000 Liabilities . . . . . . . . . . . . . .. . $ 42,000Other assets . . . . . . . . . . . . 150,000 Miller, capital . . . . . . . . . . . . 69,000Tyson, capital . . . . . . . . . . . .69,000Watson, capital . . . . . . . . . . 20,000 For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?
The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: Cash $ 50,000 Liabilities $ 42,000 Other assets 150,000 Miller, capital 69,000 Tyson, capital 69,000 Watson, capital 20,000 Total assets $ 200,000 Total liabilities and capital $ 200,000 a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time.
The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: Cash $ 62,000 Liabilities $ 41,000 Other assets 142,000 Miller, capital 72,000 Tyson, capital 72,000 Watson, capital 19,000 Total assets $ 204,000 Total liabilities and capital $ 204,000 a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time. b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?
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Kat, Mat and Pat are partners with capital balances of P 430,000, P 520,000 and P 470,000 respectively with profit and loss sharing ratio of 2:3:5 respectively. The firm owes Kat P 50,000. Upon liquidation, P 450,000 is available for distribution to the partners. How much cash will each partner receive?
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