FUND ACCOUNTING PRINCIPLES BUNDLE
25th Edition
ISBN: 9781265380311
Author: Wild
Publisher: MCG
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Question
Chapter 12, Problem 11QS
To determine
Introduction:
To Prepare: The journal entry of Partner withdrawal.
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Problem #5
Withdrawal of a Partner
On July 10, 2019, Partner Ibrahim decided to withdraw from Cebedo, Basa, and Ibrahim Partnership. Their profit and loss ratio is 3:2:1, respectively. Partnership assets are to be used to acquire Ibrahim’s partnership interest. The statement of financial position for the partnership on that date follows:
Cebedo, Basa and Ibrahim
Statement of Financial Position
July 10, 2019
AssetsCash - P 74,000Trade Accounts Receivable (net)- 36,000Plants Assets (net)- 135,000Goodwill (net)- 30,000Total Assets- P275,000Liabilities and Partners' CapitalLiabilities-P 45,000Cebedo, Capital- 120,000Basa, Capital- 60,000Ibrahim, Capital- 50,000Total Liabilities and Partners' Capital-P275,000
Required:
Prepare the journal entries to record Ibrahim’s withdrawal under each of the following assumptions:
Ibrahim is paid P54,000, and the excess amount paid over Ibrahim’s capital account balance is recorded as a bonus to Ibrahim from Cebedo and Basa.
Ibrahim is paid…
Problem #5
Withdrawal of a Partner
On July 10, 2019, Partner Ibrahim decided to withdraw from Cebedo, Basa and Ibrahim Partnership.
Their profit and loss ratio is 3:2:1, respectively. Partnership assets are to be used to acquire Ibrahim's
partnership interest. The statement of financial position for the partnership on that date follows:
Cebedo, Basa and Ibrahim
Statement of Financial Position
July 10, 2019
Assets
Cash
Trade Accounts Receivable (net)
Plants Assets (net)
Goodwill (net)
Total
P 74,000
36,000
135,000
30,000
P275,000
Liabilities and Partner's Capital
Liabilities
Cebedo, Capital
Basa, Capital
Ibrahim, Capital
Total
P 45,000
120,000
60,000
50,000
P275,000
Required:
Prepare the journal entries to record Ibrahim's withdrawal under each of the following assumptions:
1. Ibrahim is paid P54,000, and the excess amount paid over Ibrahim's capital account balance is
recorded as a bonus to Ibrahim from Cebedo and Basa.
2. Ibrahim is paid P45,000, and the difference is recorded as a…
Withdrawal of a Partner
On July 10, 2019, Partner Ibrahim decided to withdraw from Cebedo, Basa and Ibrahim Partnership. Their profit and loss ratio is 3:2:1, respectively. Partnership assets are to be used to acquire Ibrahim’s partnership interest. The statement of financial position for the partnership on that date follows:
Cebedo, Basa and Ibrahim
Statement of Financial Position
July 10, 2019
Assets Liabilities and Partner’s Capital
Cash P 74,000 Liabilities P 45,000
Trade Accounts Receivable (net) 36,000 Cebedo, Capital 120,000
Plants Assets (net) 135,000 Basa, Capital…
Chapter 12 Solutions
FUND ACCOUNTING PRINCIPLES BUNDLE
Ch. 12 - Prob. 1QSCh. 12 - Prob. 2QSCh. 12 - Prob. 3QSCh. 12 - Prob. 4QSCh. 12 - Prob. 5QSCh. 12 - Prob. 6QSCh. 12 - Prob. 7QSCh. 12 - Prob. 8QSCh. 12 - QS 12-9
Liquidation of partnership
P5
The Field,...Ch. 12 - Prob. 10QS
Ch. 12 - Prob. 11QSCh. 12 - Prob. 12QSCh. 12 - Prob. 13QSCh. 12 - Prob. 14QSCh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 1PSACh. 12 - Prob. 2PSACh. 12 - Prob. 3PSACh. 12 - Prob. 4PSACh. 12 - Prob. 5PSACh. 12 - Prob. 6PSACh. 12 - Prob. 1PSBCh. 12 - Prob. 2PSBCh. 12 - Prob. 3PSBCh. 12 - Prob. 4PSBCh. 12 - Prob. 5PSBCh. 12 - Prob. 6PSBCh. 12 - Prob. 12SPCh. 12 - Prob. 1AACh. 12 - Prob. 2AACh. 12 - Prob. 3AACh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Kay, Kat, and Kim are partners. In a liquidation,...Ch. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 1BTNCh. 12 -
BTN 12-4 Assume that you are studying for an...Ch. 12 - BTN 12-3 Access the 2017 10-K of Advanced...Ch. 12 - Prob. 4BTN
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- Question 1 • Rachael and Olivia are business partners in RO Dance Their partnership agreement states that the partners will share income in a 3:1 ratio (Rachael, Olivia). Part of the agreement includes a salary allowance of $43,000 for Rachael and $26,000 for Olivia. For the current year. RO Dance has a net loss of $5,000. The entries to close the income summary account after allocating the loss to the partners include • a debit to Rachael, Capital $12,500 and a credit to Olivia, Capital $7,500 a credit to Rachael, Capital $12,500 and a debit to Olivia, Capital $7,500 • a debit to Rachael, Capital $12,500 and a debit to Olivia, Capital $7,500 • a credit to Rachael, Capital $12,500 and a credit to Olivia, Capital $7,500 None of these choices are correctarrow_forwardChapter 16 4. The partnership of Xavier, Yarnell and Zablicki have decided to liquidate their partnership. At the time, the partners share income and loss in the ratio of 2:2:6. No partner can make any payments into the partnership. The partnership sold the noncash assets for $20,000. A. Complete the liquidation schedule below Marshalling of Assets - Simple Liquidation Noncash Y, Beginning balances Sell noncash assets Pay creditors Offset loan Allocated deficit Beginning balances Sell noncash assets Pay creditors Payment to partners B. Now assume the noncash assets were sold for $16,000. Complete the liquidation schedule below Marshalling of Assets - Simple Liquidation Offset loan Allocated deficit Cash Assets Liabilities $5,000 $40,000 $15,000 Payment to partners Cash $5,000 Noncash Assets $40,000 X Y, Loan Capital Capital $2,000 $12,000 $1,000 Liabilities $15,000 Y, Loan X₂ Capital $2,000 $12,000 Y, Capital Z₂ Capital $15,000 $1,000 Z, Capital $15,000arrow_forwardWithdrawal of a Partner Gregorio is retiring from the partnership of Guerra, Guillermo, and Gregorio. The profit and loss ratio is 2:2:1, respectively. After the accountant has posted the revaluation and closing entries, the credit balances in the Capital accounts are: Guerra, P530,000; Guillermo, P430,000; and Gregorio, P210,000. Required: Journalize the journal entries to record the retirement of Gregorio under each of the following unrelated assumptions: Gregorio retires, talking P210,000 of partnership cash for her equity. Gregorio retires, talking P270,000 of partnership cash for her equity.arrow_forward
- Noor, Tala and Sara are three partners on 31/12/2019 the capital balances are 10,000, 15,000 and 20,000 respectively on the same date Sara decide to withdraws from partnership, the company paid her $ 18,000 the debit side of journal entry is: Select one: a. cash 20,000 b. sara capital 18,000 c. cash 18,000 d. sara capital 20,000arrow_forwardSCO PROFESSOR: NAME: SECTION: Problem #20 Withdrawal of a Partner position for the partnership on that date follows: Cebedo, Basa and Ibrahim Statement of Financial Position July 10, 2019 Liabilities and Partners' Capital 骨 Assets P 74,000 36,000 135,000 30,000 P275,000 Liabilities P 45,000 120,000 Cash Trade Accounts Receivable (net) Plant Assets (net) Goodwill (net) Cebedo, Capital Basa, Capital Ibrahim, Capital 60,000 50,000 P275,000 Total Total Required: Prepare the journal entries to record Ibrahim's withdrawal under each of the following assumptions: 1. Ibrahim is paid P54,000, and the excess amount paid over Ibrahim's capital account balance is recorded as a bonus to Ibrahim from Cebedo and Basa. 2. Ibrahim is paid P45,000, and the difference is recorded as a bonus to Cebedo and Basa from Ibrahim. * 1oranim accepted cash of P40,500 and plant assets (equipment) with a current fair value of P9,000. The equipment had cost P30.000 and was 60% depreciated, with sidual value (Record…arrow_forwardProblem #18 Withdrawal of a Partner Gregorio is retiring from the partnership of Guerra, Guillermo, and Gregorio. The profit and loss ratio is 2:2:1, respectively. After the accountant has posted the revaluation and closing entries, the credit balances in the Capital accounts are: Guerra, P530,000; Guillermo, P430,000; and Gregorio, P210,000. Required: Journalize the journal entries to record the retirement of Gregorio under each of the following unrelated assumptions: Gregorio retires, taking P210,000 of partnership cash for her equity. Gregorio retires, taking P270,000 of partnership cash for her equity. 1. 2.arrow_forward
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