The following information relates to partner for the year ended 29 February 2020: R Current account credit balance on 29 February 2020 20 000 Profit share 50 000 Salaries 180 000 Interest on capital 24 000 Drawings 220 000 Interest on drawings 2 000 What is the balance in the Current account of the partner on 01 March 2019? A. R12 000 DR. B. R116 000 DR CC R52 000 CR D. R12 000 CR
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- AA and BB are partners engaged in a manufacturing business. Transactions affecting the partners’ capital accounts in 2022 are as follows: AA BB Debit Credit Debit Credit Beg. Balance P250,000 P350,000 April 1 150,000 100,000 June 30 125,000 250,000 September 1 225,000 300,000 October 1 350,000 200,000 The income summary has a debit balance of P225,000. Agreement between AA and BB are as follows: Interest on average capital at 8%. Salaries of P125,000 and P175,000 are given to AA and BB, respectively. Bonus to BB at 25% of net income after deducting interest and salaries but before deducting bonus. Balance is to be divided equally. How much is the net increase (decrease) in BB’s capital account in 2022?19 AA and BB are partners with capital accounts that had the following transactions during 2022: AA BB Debit Credit Debit Credit Beginning balance, January 1 P270,000 P280,000 February 28 P80,000 March 1 120,000 April 30 160,000 June 1 P100,000 August 1 140,000 September 30 40,000 October 31 40,000 The partnership agreement provides for the following: Interest of 9% is to be provided to AA Salaries of P4,000 is to be given to BB per quarter A bonus of 25% is to be given to AA based on net income after interest and salaries Remaining balance is to be allocated on a ratio of 40:60. The income summary account has a credit balance of P1,050,000 before profit distribution. BB has a Drawing account amounting to P40,000 which is a withdrawal made by BB in anticipation of future profits on July 1, 2022. How much is the…As of July 1, 2020, MM and AA decided to form a partnership. Their balance sheets on this date are: Cash Accounts Receivable Allowance for doubtful accounts Merchandise Inventory Machinery and Equipment Total P705,000 MM AA P 38,000 255,000 (30,000) 202,000 270,000 P735,000 240,000 495,000 P735,000 P 15,000 680,000 (140,000) - 150,000 Accounts Payable MM, capital AA, capital Total P705,000 135,000 570,000 - The partners agreed that the machinery and equipment of MM is under depreciated by P15,000 and that of AA by P45,000. Allowances for doubtful accounts is to be set up amounting to P120,000 for MM and P40,000 for AA. The partnership agreement provides for the profit and loss ratio and capital interest of 60% to MM and 40% to AA with AA’s capital as base. How much cash must MM invest to bring the partner's capital balances proportionate to their profit and loss ratio?
- 1. As of July 1, 2020, MM and AA decided to form a partnership. Their balance sheets on this date are: Cash P 15,000 P 38,000Accounts Receivable 680,000 255,000Allowance for doubtful accounts (140,000) (30,000)Merchandise Inventory 202,000Machinery and Equipment 150,000 270,000Total P705,000 P735,000 Accounts Payable 135,000 240,000MM, capital 570,000AA, capital - 495,000Total P705,000 P735,000 The partners agreed that the machinery and equipment of MM is under depreciated by P15,000 and that of AA by P45,000. Allowances for doubtful accounts is to be set up amounting to P120,000 for MM and P40,000 for AA. The partnership agreement…As of July 1, 2020, MM and AA decided to form a partnership. Their balance sheets on this date are: MM AA Cash P 15,000 P 38,000 Accounts Receivable 680,000 255,000 Allowance for doubtful accounts (140,000) (30,000) Merchandise Inventory - 202,000 Machinery and Equipment 150,000 270,000 Total P705,000 P735,000 Accounts Payable 135,000 240,000 MM, capital 570,000 AA, capital - 495,000 Total P705,000 P735,000 The partners agreed that the machinery and equipment of MM is under depreciated by P15,000 and that ofAA by P45,000. Allowances for doubtful accounts is to be set up amounting to P120,000 for MM andP40,000 for AA. The partnership agreement provides for the profit and loss ratio and capital interest of60% to MM and 40% to AA with AA’s capital as base. How much cash must MM invest to bring the partner's capital balances proportionate to their profit and loss ratio?Adam and Boru are partners sharing profit and loss in the ratio of 1:1. Their Statement of Financial Position(Balance Sheet) stood as at 31.12.2020 as follows: A and B Partnership Statement of Financial Position As at 31st December 2020 ASSETS 2020 Current Assets Kshs'000 Kshs'000 Cash and Cash Equivalent 43,500 Short Term Deposits - Prepaid Insurance 1,000 Debtors 20,500 Less Provision for Doubtful Debts (1,000) 19,500 Inventories 30,000 94,000 Non Current Assets Machinery 22,000 Less:Accumulated Depreciation - 22,000 Buildings 30,000 Less:Accumulated Depreciation - 30,000…
- The information below relates to “NOT partnership business” for the year ended 31st December, 2019Nyamekye Oliver TwistGH¢’000 GH¢’000 GH¢’000Capital Introduced 20,000 30,000 40,000Drawings 10,000 15,000 20,000i. Nyamekye is entitled to a salaries amounted to GH¢ 9,350,000 per annum, sharing Profit or loss on the basis of capital contributed.ii. Net profit for the period ended 31st December, 2019 was GH¢ 38,500,000. Interest on drawings and Capital are 5% and 10% per annum respectively. All expenses and incomes accrue evenly.iii. Oliver advanced a loan amounted to GH¢ 300,000,000 to “NOT Partnership Business” on 1stSeptember, 2019 but charged an interest of 12.5% per annum on the loan.iv. Twist Retired on 31st December, 2019 but granted his net worth in the partnership business as a loan to the business charging Interest of 9% per annum on the loan.Required a. Prepare Profit or Loss Appropriation for the year ended 31/12/2019. b. Partners’ Capital Account for the year ended 31/12/2019…A and S are partners sharing profit and loss in the ratio of 3:1. Their Statement of Financial Position(Balance Sheet) stood as at 31.12.2020 as follows: A and S Partnership Statement of Financial Position(Balance Sheet) As at 31st December 2020 ASSETS Current Assets Kshs' Kshs' Cash and Cash Equivalent 26,000 Investments 24,000 Prepaid Insurance Debtors 26,000 Less Provision for Doubtful Debts 26,000 Inventories(stock) 40,000 Total Current Assets 116,000 Non Current Assets Machinery Less:Accumulated Depreciation 10,000 10,000 Buildings 60,000 Less:Accumulated Depreciation - 60,000 Furniture 30,000 Less:Accumulated Depreciation -…A. The assets and equities of the NSW Partnership at the end of its fiscal year, October 31, 2020, are as follows: Profit and loss agreement is 30:50:20. Cash P 150,000 Accounts receivable -net 200,000 Inventory 400,000 Plant Assets - net 700,000 Loan to South 50,000 Liabilities P 500,000 West, Loan 100,000 North, Capital 450,000 South, Capital 300,000 West, Capital 150,000 The partners decide to liquidate the partnership. They estimate that the non-cash assets other than the loan to South can be realized into P 1,000,000 over the two-month period ending December 31, 2020. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Required: a) Assuming that P…
- The partnership agreement of X and Y provides that 12% interest per year is to be credited to each partner on the basis of average capital balances. A summary of Y capital for the year ended December 31, 2021 is as follows: Jan 1 Balance P840,000, July 2 Additional investment P240,000, August 1 Withdrawal P90,000, Dec. 31 Balance P990,000 What amount of interest should be credited to ⚫The assets and equities of the NSW Partnership at the end of its fiscal year, October 31, 2020, are as follows: Profit and loss agreement is 30:50:20. Cash P 150,000 Accounts receivable -net 200,000 Inventory 400,000 Plant Assets - net 700,000 Loan to South 50,000 Liabilities P 500,000 West, Loan 100,000 North, Capital 450,000 South, Capital 300,000 West, Capital 150,000 The partners decide to liquidate the partnership. They estimate that the non-cash assets other than the loan to South can be realized into P 1,000,000 over the two-month period ending December 31, 2020. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Required: Assuming that P 650,000 is available for the first distribution, show how the available cash would be distributed. Assuming that a total…The partnership accounts of Guess, Jag and Levis are shown below as of December 31, 2019. Profits and losses are shared 50%; 30%; and 20%, respectively. Guess, Drawing (debit balance)P (32,000)Levis, Drawing (debit balance)(12,000)Jag, Loan40,000Guess, Capital164,000Jag, Capital134,000Levis, Capital144,000 Total assets amounted to P 638,000, including cash of P 70,000, and P 200,000 worth of liabilities. On January 2019, the partnership was liquidated, and Jag received P 111,000 cash as final settlement.Required:1.The total loss from the liquidation of the partnership2.Prepare the statement of liquidation.3.Journal entries to record the liquidation.
