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
icon
Related questions
icon
Concept explainers
Question

Yes, Please consider usman as posada. 

4. (a) On December 31, the capital balances and income ratios in Bismillah Company are as
follows.
Capital Balance
Tk, 100,000
Partner
Income Ratio
50%
Abu Bakar
Umar
80,000
30%
20%
Usman
50.000
Instructions
(1) Jounalize the withdrawal of Usman under cach 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 caşh.
(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) Iř 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?
Transcribed Image Text:4. (a) On December 31, the capital balances and income ratios in Bismillah Company are as follows. Capital Balance Tk, 100,000 Partner Income Ratio 50% Abu Bakar Umar 80,000 30% 20% Usman 50.000 Instructions (1) Jounalize the withdrawal of Usman under cach 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 caşh. (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) Iř 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?
Expert Solution
steps

Step by step

Solved in 3 steps with 4 images

Blurred answer
Knowledge Booster
Private Payer-ACA Plans
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education