(3) Tom & faith are in a partnership Sharing profits and losses ratio of 3/5s for Tom and 2/5 for faith. in the The partnership deed provides for interest on capital at the rate. 5% and interest on drawings. per annum The partners are entitled to annual Salaries of $2000 and $1000 for Tan Tom & faith respectively The following balance were extracted from the books of the partnership as at 30th Sept 2026. Capital accounts 14.000 10.000 Tom faith Current accounts Tum 4,000 2.500 farth ܐܘ Drawings Tom 3.800 Farth 2.200 Notes During the year the partne made a net profit of 15,000 for the business. Prepare the partner's current account as of 30th Sept 2020

(3) Tom & faith are in a partnership Sharing profits and losses ratio of 3/5s for Tom and 2/5 for faith. in the The partnership deed provides for interest on capital at the rate. 5% and interest on drawings. per annum The partners are entitled to annual Salaries of $2000 and $1000 for Tan Tom & faith respectively The following balance were extracted from the books of the partnership as at 30th Sept 2026. Capital accounts 14.000 10.000 Tom faith Current accounts Tum 4,000 2.500 farth ܐܘ Drawings Tom 3.800 Farth 2.200 Notes During the year the partne made a net profit of 15,000 for the business. Prepare the partner's current account as of 30th Sept 2020

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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The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda $ 270,000 Adams 240,000 Fergie 230,000 Gomez 220,000 Total capital $ 960,000 Answer each of the following independent questions: Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $269,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $355,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.)
Marvin, Gerwin, Froilan formed a partnership on July 1,2020 with the following investments: Marvin 200,000 Gerwin 300,000 Froilan 450,000 The partnership agreement stated that profits and losses are to be shared equally by the partners after consideration for the following: 1. Annual salaries to partners: 60,000 for Marvin, 48,000 for Gerwin and 36,000 for Froilan. 2. 10% interest on average capital 3. 10% of net profit after salaries and interest as bonus to Marvin as the managing partner. On October 1, 2020, Marvin made additional investment of 60,000, on the residual profit after salaries and Froilan invested 30,000 on Dec. 1,2020. Assuming the result of operation is a loss of P50,000, how much is the share of each partner to the partnership loss?
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:1 Mr. Suhail and Mr. Said decided to start a partnership business. They drafted a partnership deed with the help of a consultant and started the business on 01.11.2020 Some of the key extracts of the partnership deed is given as follows: Resolved that. a. Each partner is to bring in OMR 15,000 as capital b. Each partner is to get 5% interest on capital c. Mr. Suhail is entitled to get a salary of OMR 400 per month d. Firm is entitled to charge 6% interest per annum on partner's drawings. Summary of transactions: November: 2020 Capital contribution: Mr. Suhail -OMR 15000; Mr. Said: OMR a. 15000 b. Purchase of goods- OMR 8.000 sales of goods- OMR 18,000 d. Wages- OMR 200 e. Salary to employees- OMR 1,200 f. Other administrative expenses- OMR 800 g. Rent of building- OMR 1,000 h. Electricity charges- OMR 15 i. Water charges- OMR 5 j. Travelling expenses- OMR 50 k. Furniture purchase- OMR 1,500 1. Electrical fittings- OMR 200 m. Drawings of partners-: Mr. Suhail -OMR 200; Mr. Said; OMR…
The information given below was extracted from the accounting records of Total Limited, a partnership business with Glen and Murry as partners. Information: Extract from the ledger of Total Limited on 30 June 2021 R Capital : Glen 400 000 Capital: Murry 300 000 Current a/c: Glen (01 July 2020) 45 000 CR Current a/c: Murry (01 July 2020) 42 000 DR Drawings: Glen 95 000 Drawings: Murry 110 000 The following must be taken into account: 1. On 30 June 2021 the Profit and Loss account reflected a net profit of R940 000. 2. Partners are entitled to interest at 14% p.a. on their capital balances. Note: Glen decreased his capital contribution by R90 000 on 01 July 2020. This capital decrease has been recorded. 3. Partners are entitled to the following monthly salaries: Glen R13 000 for the first ten months of the financial year and R15 000 for the next two months. • Murry R10 000 per month throughout the year. 4. Partner Murry is entitled to a bonus equal to 10% of the net profit before any of…
The partners of Triple A Partnership are Adah, Ana and Ara. During the current year, their average capital balances are as follows: Adah –P 180,000; Ana – P160,000; Ara - P 150,000. The articles of partnership provided the following terms: 1. Annual interest of 8% on their average capital balances. 2. Salary allowances as follows: Adah – P 50,000 and Ana - P 80,000. 3. Ana shall receive bonus of 15% of income in excess of P40,000 after partner's interest and salary allowances. 4. Residual profits shall be divided in the ratio of 2:2:6 to Adah, Ana and Ara. What amount will Ana receive if the net income earned is P 470,000? *
The following balance sheet for the partnership of Juan, Ponce and Enrile were taken from the books on November 30, 2011: Cash P 80,000 Liabilities P 200,000 Other Assets 720,000 Juan, Capital 148,000 Ponce, Capital 260,000 Enrile, Capital 192,000 The partners’ agreed to distribute the profits as follows; Annual salaries to Juan and Ponce of P 6,000 each.6 % interest on beginning capital10 % bonus to Ponce (the bonus to be treated as an expense after salaries and interest)Remaining profit – 40:40:20 respectively. If the net income of the partnership was P 122,400 during the two-month period ending December 31, 2011, the total share of Ponce in the net income is; a. P 61,440 b. P 55,600 c.…
Partners Charlie and Delta share profits in the ratio of 6:4 respectively. On December 31, 2018 their respective capital balances were Charlie, P120,000 and Delta, P100,000. On that date Mae was admitted as partner with a one-third interest in capital and profits for an investment of P80,000. The new partnership began in 2019 with total capital of P300,000. Immediately after Mae’s admission, Charlie’s capital should be: a.P160,000 b.P108,000 c.P120,000 d.P100,000
Tom and Faith are in a partnership sharing profits and losses in the ratio of 3/5 for Tom and 2/5 for Faith. The partnership deed provides for interest on capital at the rate of 5% and interest on drawings at 10% per annum. The partners are entitled to annual salaries of $ 2,000 and $1,000 for Tom and Faith respectively. The following balances were extracted from the books of the partnership as at 30th, September 2020: $ Capital accounts: Tom 14,000 Faith 10,000 Current accounts: Tom 4,000 Faith 2,500 Drawings: Tom 3,800 Faith 2,200 During the year the partners had made a net profit of $15,000 for the business. Required: Prepare the partners’ current accounts as at 30th September 2020.