Financial Accounting: Information for Decisions
8th Edition
ISBN: 9781259533006
Author: John J Wild
Publisher: McGraw-Hill Education
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1. A and B are capitalist partners while C is an industrial partner. There is no agreement as to the profits and losses. The partnership realized profit in the amount of P150,000.
a. The share of C in the profits shall be?
b. Suppose instead of profit, the partnership suffered loss in the same amount of P150,000. The share of the capitalist partners in the loss shall be?
c. Suppose instead of profit, the partnership suffered loss in the same amount of P150,000. The share of the industrial partner in the loss shall be?
2. A is the managing partner of AB Partnership. X is personally indebted to A for P25,000 and the partnership P75,000. When both debts mature, X pays A P10,000 and the latter issued a receipt for his personal credit. How shall the payment for P10,000 be applied?
Please help me with these questions, I don't get it. Thank you
The partnership obtained a profit for the period. Salaries were distributed, and so are the interests on beginning capital balances. The next step to be done is to provide bonus to one of the partners. After calculating the bonus and had it given to the partner, the net income became insufficient. What should be done regarding this matter?
a. Continue to provide the bonus and the insufficiency should be divided among the partners.
b. The bonus should not be given anymore, and the remaining balance to be divided among the partners.
c. The whole amount of profit should be divided among the partners equally.
d. None of the given.
1. In a partnership liquidation the realization losses result in a debit balance in one partners’ capital account. If this partner fails to contribute personal assets to make up this deficit, how should the debit balance be handled by the partners?
a. It should be written off against partnership profits like any other bad debt.
b. It should be allocated to all the partners in their profit and loss ratio.
c. It should be allocated to the remaining partners in their remaining P and L ratio.
d. It should be set up as a receivable and turned over to a collection agency.
2. During liquidation, a partners’ capital account balance drops below zero. What should happen?
a. The other partners should file a legal suit against the partner with the deficit balance.
b. The partner with the highest capital balance should contribute sufficient assets to eliminate the deficit.
c. The deficit balance…
Chapter D Solutions
Financial Accounting: Information for Decisions
Ch. D - Prob. 1DQCh. D - Prob. 2DQCh. D - Prob. 3DQCh. D - Prob. 4DQCh. D - Prob. 5DQCh. D - Prob. 6DQCh. D - Prob. 7DQCh. D - Prob. 8DQCh. D - Prob. 9DQCh. D - Prob. 10DQ
Ch. D - Prob. 11DQCh. D - Prob. 12DQCh. D - Prob. 1QSCh. D - Prob. 2QSCh. D - Prob. 3QSCh. D - Prob. 4QSCh. D - Prob. 5QSCh. D - Prob. 6QSCh. D - Prob. 7QSCh. D - Prob. 8QSCh. D - Prob. 1ECh. D - Prob. 2ECh. D - Prob. 3ECh. D - Prob. 4ECh. D - Prob. 5ECh. D - Prob. 6ECh. D - Prob. 7ECh. D - Prob. 8ECh. D - Prob. 9ECh. D - Prob. 10ECh. D - Prob. 11ECh. D - Prob. 12ECh. D - Prob. 1PSACh. D - Prob. 2PSACh. D - Prob. 3PSACh. D - Prob. 4PSACh. D - Prob. 5PSACh. D - Prob. 1PSBCh. D - Prob. 2PSBCh. D - Prob. 3PSBCh. D - Prob. 5PSBCh. D - Prob. 3BTN
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