New Partner A and New Partner B are both proprietor who decided to form a partnership on July 22, 2022. New Partner A contributed cash, inventory and equipment worth P300,000, P500,000, and P800,000, respectively, while New Partner B contributed an equipment and Inventory worth P400,000 of P1,200,000. Both partners agree that the assets contributed were undervalued thereby increasing the value of inventory by 20% and the equipment by 10%. How much is the capital of the New Partnership?
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- Griffin and Rhodes formed a partnership on January 1, 2022. Griffin contributed cash of P120,000 and Rhodes contributed land with a fair value of P160.000. The partnership assumed the mortgage on the land which amounted to P40,000 on January 1. Rhodes originally paid P90,000 for the land. On July 31, 2022, the partnership sold the land for P190,000. Assuming Griffin and Rhodes share profits and losses equally, how much of the gain from the sale of land should be credited to Griffin? O 30,000 15,000 O 35,000 12.857 3. Paul and Ray sell instruments through their partnership. To bring in additional funds and expertise, they decide to add Janet to the partnership. Paul's capital is P400,000, Ray's capital is P200,000, and Janet invested P180,000. It was agreed that Janet and Ray will have equal capital balances and Paul will have a 35% capital interest. Using the bonus method, what will be the adjusted capital of Paul? O 273,000 O 300,000 O 253,500 O 260,000On September 30, 2022, A, B, and C formed a partnership by combining their separate business proprietorships. • A contributed cash of P500,000. B contributed Land with a P460,000 carrying amount, a P400,000 original cost, and a P500,000 fair market value. The partnership accepted responsibility for the P150,000 mortgage attached to the property. . C contributed equipment with a P300,000 carrying amount, a P750,000 original cost, and a P550,000 fair value. Compute B's capital account to be credited upon formation.A and B decided to form a partnership on January 1, 2022. Partner A contributed building which costed him P450,000 in 2017 and computer equipment with a book value of P17.500 and fair market value of P15,000. The building has a recorded accumulated depreciation of P50,000. Partner B, on the other hand, contributed cash equal to the contribution of Partner A. Shortly after the formation of the partnership, the building was sold for P420,000. How much should be recorded as Partner A. Capital in the partnership books?
- n April 30, 2018, Lacson, Yacapin, and Bernal formed a partnership by combining their separate business proprietors. Lacson contributed cash of P50,000. Yacapin contributed property with a P36,000 carrying amount, a P40,000 original cost, and P80,000 fair value. The partnership accepted responsibity for the P35,000 mortgaged attached to the property. Bernal contributed equipment with a P30,000 carrying amount, a P75,000 original cost, and P55,000 fair value. The partnership agreement specifies that profits and losses are to be shared equally but is silent regarding capital contributions. Which partner has the largest capital balance?On April 1, 2020, A, B and C formed a partnership by combining their separate business proprietorships. A contributed cash of P 200,000. B contributed property with a carrying amount of P144,000, original cost of P160,000, and a fair value of P320,000. The partnership accepted responsibility for the P140,000 mortgage attached to the property. C contributed equipment with a carrying amount of P120,000, original cost of P300,000 and fair market value of P220,000. The partnership agreement specifies that profits and losses are to be shared equally. Assuming capital is based on their profit and loss agreement, how much is the implied bonus?On February 14, AA and BB formed a partnership and contributed the following assets at historical costs: AA BB Cash P600,000 P200,000 Inventories Furniture and fixtures Delivery equipment Land The land was subject to a mortgage which has an unpaid balance of P50,000. The mortgage will be assumed by the partnership. AA and BB agreed to share profits and losses in the ratio of 1:2, respectively. The partners agreed to contribute inventories (BB is to contribute inventories worth 2.5 times the peso value of the inventories to be contributed by AA) in order to have their capital credits in the same ratio as their profits and losses ratio.
- Sugino and Rio formed a partnership on July 1, 2022. Sugino invested P20,000 cash, inventory valued at P15,000, and equipment valued at P67,000. Rio invested P50,000 cash and land valued at P120,000. The partnership assumed the P40,000 mortgage on the land. On June 30, 2023, the partnership reported a net loss of P24,000. The partnership contract specified that income and losses were to be allocated by allowing 10% interest on the original capital investment, salaries of P15,000 to Sugino and P20,000 to Rio, and the remainder to be divided in the ratio of 40:60. On July 1, 2023, Hayami was admitted into the partnership with a P70,000 cash investment. Hayami was given a 30% interest in the partnership because of his special skills. The partner elect to use the bonus method to record the admission. Any bonus should be divided in the old ratio of 40:60. On June 30, 2024, the partnership reported net income of P150,000. The new partnership contract stipulated that income and losses were to…On April 1, 2021, A1, A2, A3 formed a partnership by combining their separate business proprietorships. A1 contributed cash of P200,000, A2 contributed property with a carrying amount of P 144.000, onginal cost of P160,000 and fair value of P320,000. The partnership accepted responsibility for the P140.000 mortgaged attached to the property, A3 contributed equipment with a carrying amount of P120,000, original cost of P300.000, and fair value of P220,000. The partnership agreement specifies that profits and losses are to be shared equally. How much is the property contributed by A2 to be recorded on April 1, 20217On July 1, 2020, X, Y and Z formed a partnership by combining their separate business proprietorships. X contributed cash of P 200,000. Y contributed property with a carrying amount of P144,000, original cost of P160,000. and a fair value of P320,000. The partnership accepted responsibility for the P140,000 mortgage attached to the property. Z contributed equipment with a carrying amount of P120,000, original cost of P300,000 and fair market value of P220,000. The partnership agreement specifies that profits and losses are to be shared equally. How much is the investment of Y?*
- On January 1, FRED and GEMMO formed a partnership by contributing cash of P405,000 and P270,000, respectively. On February 1. Fred contributed an additional P135,000. On May 1, Gemmo contributed machinery with a fair market value of P90,000 and a net book value/cost of P75,000 when contributed. On November 1 Gemmo contributed an additional P45,000 cash to the partnership. Profit or loss agreement are as follows: • Interest at 6% is allowed on average capital balances; • Salaries of P2,700 per month to each partner; • Bonus to Fred of 10% of net income; and • Balance to be divided in the ratio of 6:4 to Fred and Gemmo, respectively. ASSUMPTIONS: 1. The company had a revenue of 458,300 and expenses of 227, 900 resulting in a profit of 257,400. 2. The company had a revenue of 227, 900 and expenses of 458,300 resulting in a loss of 257,400. 3. The company had a revenue of 458,300 and expenses of 406,325 resulting in a profit of 51,975. Required: 1. Table showing the computation of average…Partners A and B formed a partnership on January 1, 2020 where Partner A invested P500,000 while Partner B invested P300,000. Profit and loss as agreed upon by partners is to be shared in the ratio of the original capital. The drawing accounts of Partners A and B have debit balances of P24,000 and P12,000 respectively. Net income for the period ending December 31, 2020 amounted to P180,200. What is capital balance of Partner B for the year ending December 31, 2020?On January 1, 20x1, A, B and C formed a partnership by combining their separate business proprietorships. A contributed cash of P500,000. B contributed land with a P360,000 carrying amount, a P400,000 original cost, and P800,000 fair value. The partnership accepted responsibility for the P350,000 mortgage attached to the property. C contributed equipment with a P300,000 carrying amount, a P750,000 original cost, and P550,000 fair value. The partnership specifies that profits and losses are to be shared equally but is silent regarding capital contributions. How much is the initial capital of the partnership? a. 1,250,000 b. 1,450,000 c. 1,500,000 d. 1,550,000