A. 68,000; 32,000; 50,000B. 66,667; 33,333; 50,000C. 50,000, 50,000, 50,000D. 60,000, 60,000, 60,00015. In the AB partnership, A's capital is P150,000 and B's capital P50,000 and they share income in a1:4 ratio, respectively. They decide to admit C to the partnership. A andB agree that some of theinventory is obsolete. The inventory account is decreased before C is admitted. C investsP50,000 for a 60% interest in capital. What is the amount of inventory written down?A. 166,667B. 100,000C. 250,000D. 0

Here in this question we are required to calculate how much inventory balance written down in…

Answered: 15. In the AB partnership, A's capital…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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X and Y are partners sharing profits 6:4, respectively. Capital accounts as of October are 1, 2021 X-P 560,000, Y-P 480,000 They agree to admit Z as a new partner with an investment of P260,000 for a interest in the partnership and that the assets are fairly valued, what would be the capital of Y after the admission of Z? A.P 480,000 B.P 506,000 C.P 454,000 D. P325,000
n the AB partnership, A's capital is P150,000 and B's capital P50,000 and they share income in a 1:4 ratio, respectively. They decided to admit C to the partnership. A and B agree that some of the inventory is obsolete. C contributed P50,000 for a 40% interest in capital and 30% in the profit/loss sharing. Determine the amount of inventory write-down.
X and Y are partners sharing profits 6:4, respectively. Capital accounts as of October 1, 2021 are: X-P 560,000, YP 480,000. They agree to admit Z as a new partner with an investment of P260,000 for a ¼ interest in the partnership and that the assets are fairly valued, what would be the capital of Y after the admission of Z?
3. Show solution in good accounting form
5. Which of the following items do not retain their character as they flow through to the partnership? More than one answer may be correct. a. Long-term capital gains. b. Short-term capital gains. c. Depreciation recapture income. d. Dividend income. 6. Sal and Nan owned 90% and 10% of the SN Partnership, respectively. SN operated a foundry. Sal sold stock in ExxonMobil with a basis of $4,000 to the partnership for $6,000. The amount and character of gain recognized to Sal is: a. $0. b. $2,000 ordinary. c. $2,000 capital gain. d. $6,000 ordinary. 7. Sal and Nan owned 90% and 10% of the SN partnership, respectively. SN operated a foundry. Sal sold a machine, capital asset to him but to be used in the SN business operations, with a basis of $4,000 to the partnership for $6,000. The amount and character of gain recognized to Sal is: a. $0. b. $2,000 ordinary. c. $2,000 capital gain. d. $6,000 ordinary.
A partnership has the following capital balances: Pong, Capital P30,000 PJ, Capital Jeng, Capital P60,000 P90,000 Profits and losses are split as follows: Jeng 20% Pong 30% PJ 50%. PJ wants to leave the partnership and is paid P100,000 from the business based on provisions in the articles of partnership. If the partnership uses the bonus method, what is the balance of Pong's capital account after PJ withdraws? a.) P24,000 b.) P27,000 c.) P33,000 d.) P36,000
am. 124.
Which of the following would be classified as disproportionate distributions? Assume A and B each own 50% interests in the AB Partnership, the partnership owns hot assets, and the partners remain partners in AB partnership. Question 18 options: a. Partner A receives $6,000 cash and Partner B receives a capital asset valued at $6,000. b. Partner A received $6,000 cash and Partner B receives inventory items valued at $6,000 (basis $3,500). c. Both partners receive unrealized accounts receivables with a basis of $0 and a value of $6,000. d. Items a. and c. represent disproportionate distributions e. Items b. and c. represent disproportionate distributions.
9. A, B and C partnership shows the following profit and loss ratios and capital balances: A 60% 300,000 B 30% 120,000 C 10% 50,000 The partners decided to sell D 20% of their respective capital and profit and loss interests for a total payment of 90,000. D will pay directly to the partners. If the partners agreed to revalue the assets prior to the admission of D, what is the capital balance of C after D's admission?
2. Hammer and Nail formed a partnership. Hammer contributed equipment with original cost of P370,000 and fair value of P300,000 while Nail contributed cash of P180,000. Hammer and Nail agreed to have a 60:40 interest in the partnership and that their initial capital credits should reflect this fact. A partner's capital account should be increased accordingly by way of additional cash investment. Which of the partners should make an additional investment and by how much? a. Hammer, P20,000 b. Nail, P20,000 c. Hammer, P70,000 d. Nail, P70,000
4. Under partnership

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