Kk162. The ST Partnership was formed by Saling and Taling, who contributedtangible assets with the following fair values:CashFurnitureComputerSalingP50,00012,000TalingP20,000Goodwill method.Bonus method.Agreed valueP70,00010,00080,000100,000The amount of P5,000 is owed for the furniture and the amount of P50,000 isowed for the computer. The partnership assumes both liabilities.Required:Prepare the partnership formation entry assuming that thepartners' capital balances are to be equal using

Partnership - A partnership may be formed with different types i.e, General partnership, limited…

The ST Partnership was formed by Saling and Taling, who contributed tangible assets with the following fair values: Taling P20,000 100,000 The amount of P5,000 is owed for the furniture and the amount of P50,000 is owed for the computer. The partnership assumes both liabilities. Cash Furniture Computer Saling P50,000 12,000 a. Goodwill method. b. Bonus method. Agreed value P70,000 10,000 80,000 Required: Prepare the partnership formation entry assuming that the partners' capital balances are to be equal using

The ST Partnership was formed by Saling and Taling, who contributed tangible assets with the following fair values: Taling P20,000 100,000 The amount of P5,000 is owed for the furniture and the amount of P50,000 is owed for the computer. The partnership assumes both liabilities. Cash Furniture Computer Saling P50,000 12,000 a. Goodwill method. b. Bonus method. Agreed value P70,000 10,000 80,000 Required: Prepare the partnership formation entry assuming that the partners' capital balances are to be equal using

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 57P

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Similar questions

On July 1, 20X2, Cua, Wicas, and Suico organized a partnership. Wicas contributed cash amounting to P600,000 and Suico contributed cash of P300,000 and machinery with a carrying amount of P250,000, the historical cost of P600,000, and market value of P475,000. Cua, on the other hand, was admitted to the partnership for the services that she will provide. It was stipulated in the Articles of the Partnership that Cua, Wicas, and Suico will share the profit and loss in the ratio of 3:5:2. Moreover, it was also stipulated that when Cua and Wicas become personally insolvent upon winding up, Suico will also absorb the loss of the partnership. Are the stipulations valid? Justify your answer in no more than five (5) sentences.
A and G executed a partnership agreement that lists the following assets contributed at the partnership's formation: A-cash, P22,000 and Furniture and Equipment P12,000: B-cash, P32,000 Inventory, P17,000 Building, P42.000, The building is subject to a mortgage of P8,000, which the partnership has assumed. The partnership agreement also specified that profits and losses are to be distributed equally. What amounts should be recorded as capital for A at the formation of the partnership?
Mighty Darrel and Super Zigg formed a partnership and agreed to have an equal interest in thepartnership’s assets. They agreed to make the following contributions : Darrel contributed 100,000and Zigg contributed 84,000 in identifiable assets. Under the bonus approach, what is the amount ofbonus from Darrel to Zigg capital? A. 46,000B. 16,000C. 8,000D. 0
The partnership of H, M and R is liquidating and the ledger shows the following:Dr. Cash- P80,000Dr. Inventories- P100,000Cr. Accounts payable- P60,000Cr. H, Capital (50%)- P45,000Cr. M, Capital (25%)- P40,000Cr. R, Capital (25%)- P35,000If all cash available is distributed immediately: a. M should get P15,000 and R should get P5,000 b. M should get P12,500, and R should get P7,500 c. each partner should get P6,667 each d. each partner should get P26,667 each
L, E, and A are partners with capital balances of P787,500, P945,000, and P315,000, respectively. The partners share profits and losses in the ratio of 45:25:30, respectively. D is to join the partnership upon contributing P315,000 cash plus an equipment with fair value of P630,000 to the partnership in exchange for 20% interest in the capital and 25% interest in the profits and losses. After admission, the original partners will share profits and losses equally. How much is bonus to (from) D assuming the existing assets of the original partnership are overvalued by P192,500? Assuming the existing assets of the original partnership are undervalued by P192,500, what is the capital balance of A after the admission of D?
L, E, and A are partners with capital balances of P787,500, P945,000, and P315,000, respectively. The partners share profits and losses in the ratio of 45:25:30, respectively. D is to join the partnership upon contributing P315,000 cash plus an equipment with fair value of P630,000 to the partnership in exchange for 20% interest in the capital and 25% interest in the profits and losses. After admission, the original partners will share profits and losses equally. How much is bonus to or from D assuming (1) the assets and liabilities of the partnership are fairly valued, (2) the existing assets of the original partnership are overvalued by P192,500 and (3) the existing assets of the original partnership are undervalued by P180,000? Group of answer choices 346,500 bonus to D; (2) 385,000 bonus to D; (3) 310,500 bonus to D 196,875 bonus from D; (2) 245,000 bonus from D; (3) 382,500 bonus from D 196,875 bonus to D; (2) 196,875 bonus to D; (3) 382,500 bonus to D 346,500 bonus from…
J, H, and N are partners with present capital balances of P40,000 ,P50,000 andP20,000 respectively. The partners share profits and lossesaccording to the following percentages: 50% for A, 20% for B, and 30%for C. D is to join the partnership upon contributing P55,OOO to thepartnership in exchange for a 35% interest in capital and a 20% interest inprofits and losses. An appraisal of the existing partnerships' assets revealsthe following: Accounts Receivable 20,000 overvalued; Inventory 10,000overvalued; Land 10,000 undervalued; Building 15,000 undervalued. Whatis the bonus of N in the new partnership assuming bonus method?
J, H, and N are partners with present capital balances of P40,000 ,P50,000 andP20,000 respectively. The partners share profits and lossesaccording to the following percentages: 50% for A, 20% for B, and 30%for C. D is to join the partnership upon contributing P55,OOO to thepartnership in exchange for a 35% interest in capital and a 20% interest inprofits and losses. An appraisal of the existing partnerships' assets revealsthe following: Accounts Receivable 20,000 overvalued; Inventory 10,000overvalued; Land 10,000 undervalued; Building 15,000 undervalued. Whatis the capital balance of H in the new partnership assuming bonusmethod?
X, Y and Z decided to form XYZ Partnership. It was agreed that X will contribute an equipment with assessed value of P300,000 with historical cost of P800,000 and accumulated depreciation of P500,000. On the date of formation, the fair value of equipment was P 400,000. Y will contribute a land and building with carrying amount of P1,200,000 and fair value of P1,500,000. The land and building are subject to a mortgage payable amounting to P300,000 to be assumed by the partnership. The partners agreed that Y will have 40% capital interest in the partnership. The partners also agreed that Z will contribute sufficient cash to the partnership. Net income for the year is P400,000. How much profit should be allocated to X? a) 1,250,000 b) 1,175,000 c) 1,050,000 d) 1,800,000
A and B entered into a partnership agreement in which A is to have a 60% interest in capital and profits and B is to have a 40% interest in capital and profits. A will contribute cash and the following non-cash assets: Land -Cost-P25,000 FMV-P40,000; Building-Cost-P200,000 FMV P120,000; Equipment-Cost-P40,000 FMV-P30,000. There is a P60,000 mortgage on the Building that the partnership agrees to assume. B contributes P 100,000 cash to the partnership. How much is the additional cash investment of A to have a 60% share in the new partnership?
The partnership of H, M and R is liquidating and the ledger shows the following:Dr. Cash- P80,000Dr. Inventories- P100,000Cr. Accounts payable- P60,000Cr. H, Capital (50%)- P45,000Cr. M, Capital (25%)- P40,000Cr. R, Capital (25%)- P35,000If all cash available is distributed immediately: Choices: • M should get P12,500, and R should get P7,500 • each partner should get P26,667 each • each partner should get P6,667 each • M should get P15,000 and R should get P5,000
Dolfo and Poldo formed a partnership. Dolfo contributed cash of P600,000, desktop computer of P70,000 and printer that cost P30,000. The fair value of computer is 50,000 while the printer has a fair value of P20,000. Dolfo has notes payable on the computer and printer of P10,000 to be assumed by the partnership. Dolfo is to have 60% capital interest in the partnership. Poldo contributed P500,000 only. The partners agreed to share in the partnership profits and losses in the ratio of 2:3 for Dolfo and Poldo respectively. How much is the net investment of Dolfo?