4. (a) On December 31, the capital balances and income ratios in Bismillah Company are as follows. Income Ratio 50% Partner Capital Balance Tk. 100,000 Abu Bakar Umar 80.000 50.000 30% 20% Usman Instructions (1) Joumalize the withdrawal of Usman under each of the following assumptions. (i) Each of the continuing partners agrecs to pay Tk. 30,000 in cash from personal funds to purchase Usman's ownership equity. Each receives 50% of Usman's equity. (ii) Umar agrees to purchase Usman's owrership interest for Tk. 35.000 cash. (ii) Usman is paid Tk. 60.000 from partnership assets, which includes a bonus to the retiring partner. (iv) Usman is paid Tk. 42,000 from partnership assets, and bonuses to the remaining partners are recognized. (2) IF Umar's capital balance after Posada's withdrawal is Tk. 100,600, what were (1) the total bonus to the remaining partners and (2) the cash paid by the partnersbip to Posada?

4. (a) On December 31, the capital balances and income ratios in Bismillah Company are as follows. Income Ratio 50% Partner Capital Balance Tk. 100,000 Abu Bakar Umar 80.000 50.000 30% 20% Usman Instructions (1) Joumalize the withdrawal of Usman under each of the following assumptions. (i) Each of the continuing partners agrecs to pay Tk. 30,000 in cash from personal funds to purchase Usman's ownership equity. Each receives 50% of Usman's equity. (ii) Umar agrees to purchase Usman's owrership interest for Tk. 35.000 cash. (ii) Usman is paid Tk. 60.000 from partnership assets, which includes a bonus to the retiring partner. (iv) Usman is paid Tk. 42,000 from partnership assets, and bonuses to the remaining partners are recognized. (2) IF Umar's capital balance after Posada's withdrawal is Tk. 100,600, what were (1) the total bonus to the remaining partners and (2) the cash paid by the partnersbip to Posada?

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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