3. For Das to obtain a 1/3 interest in the partnership, how much must his cash investment be? * Adee admitted Das as a partner in a business. The balance sheet of Adee on July 30, 2019 before the admission of Das shows: Cash 31,200 Receivables 144,000 Inventory Accounts Payable 216,000 74,400 Adee, Capital 316,800 In order to establish Das Interest, the partners agreed on the following: An allowance of doubtful accounts of 2% is to be established Merchandise Inventory is to be valued at P242,400 Prepaid Expenses of P4,200 and accrued expenses of P4,800 are to be recognized
3. For Das to obtain a 1/3 interest in the partnership, how much must his cash investment be? * Adee admitted Das as a partner in a business. The balance sheet of Adee on July 30, 2019 before the admission of Das shows: Cash 31,200 Receivables 144,000 Inventory Accounts Payable 216,000 74,400 Adee, Capital 316,800 In order to establish Das Interest, the partners agreed on the following: An allowance of doubtful accounts of 2% is to be established Merchandise Inventory is to be valued at P242,400 Prepaid Expenses of P4,200 and accrued expenses of P4,800 are to be recognized
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:9. How much is the equipment contributed by Rogers?
Romanoff and Barton are partners with capital balances of P60,000 and P70,000. Romanoff has a 30%
interest in the partnership profits and losses. At this time, the partnership decided to admit Stark and
Rogers as new partners. Stark contributes cash of P165,000 for a 30% interest in the profits and losses
and a 20% interest in the capital of the firm. Rogers contributes cash of P20,000 and an equipment for
a 35% interest in the profits and losses and a 25% interest in the firm's capital. Barton receive a bonus
of P38,325 after the admission of Starks and Rogers.
10. How much is the capital balances of Wanda after Banner's
withdrawal? *
Banner and Strange are partners who have capital balances of P65,000 and P35,000 and share profits
3:2. Wanda is admitted as a partner and is given a 25% interest in the firm upon investing P40,000
cash. Profits are to be shared 5:3:2 by Banner, Strange and Wanda. Subsequently a new partner, Peter,
was admitted by investing P25,000 cash for a 20% interest in assets and a 20% share of the firm's
profits. Former partners share the balance of profits in their original ratio. Banner has difficulty getting
along with Peter and as a result, Banner withdraws from the partnership. The partnership pays P73,000
cash for Banner's interest.
Transcribed Image Text:3. For Das to obtain a 1/3 interest in the partnership, how much must his
cash investment be?
Adee admitted Das as a partner in a business. The balance sheet of Adee on July 30, 2019 before the
admission of Das shows:
Cash
31,200
Receivables
144,000
Inventory
216,000
Accounts Payable
74,400
Adee, Capital
In order to establish Das Interest, the partners agreed on the following
316,800
An allowance of doubtful accounts of 2% is to be established
Merchandise Inventory is to be valued at P242,400
Prepaid Expenses of P4,200 and accrued expenses of P4,800 are to be recognized
4. How much is the capital of Adee upon partnership formation?
Adee admitted Das as a partner in a business. The balance sheet of Adee on July 30, 2019 before the
admission of Das shows:
Cash
31,200
Receivables
144,000
Inventory
216,000
Accounts Payable
74,400
Adee, Capital
In order to establish Das Interest, the partners agreed on the following
316,800
An allowance of doubtful accounts of 2% is to be established
Merchandise Inventory is to be valued at P242,400
Prepaid Expenses of P4,200 and accrued expenses of P4,800 are to be recognized
5. Partners X, Y and Z have capital balances capital balances in a
partnership of P140,000, P60,000 and P1,800,000. The operations for the
year resulted in a loss of P240,000. What will be the capital balance of Y
if the three partners share in the profits of the partnership in the ratio of
2:2:6? (POSITIVE FOR CREDIT BALANCE and NEGATIVE () or "-" FOR
DEBIT BALANCE) *
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