8:43 "l944. On January 1, 2020, Rus and An decided to form a partnership. At the end of the year, apartnership made a net income of P75,000. The capital account of the partnership shows thefollowing transactions.RUSANJANUARY 130,00040,000MAY 16,000JULY 1(12,000)8,000(3,000)(2,000)Assuming that an interest of 20% per annum is given on average capital and the balance of theAUGUST 1ОСТОВER 112,000profits is allocated equally, the allocation of profits should be -5. Pak and Ner are partners who share profits and losses in the ratio of 70:30%, respectively. Pak'ssalary is Php 50,000 and Php 25,000 for Ner. The partners are also paid interest on their averagecapital balances. In 2020, Pak's received 30,000 of interest and Ner, 20,000. The profit and lossallocation are determined after deductions for the salary and interest payments. If Pak's share inthe residual income was P56,000, what was the total partnership income?EndJ GC 8:33 "4996Activity #21. Ah and Par entered into partnership by investing the following assets:АНPARCASH300,000450,000EQUIPMENTS200,000450,000BUILDING3,400,000FURNITURE AND FIXTURES800,000The building is subject to a mortgage of Php 800,000, which is to be assumed by the partnership.The partnership agreement provides that Ah and Par share profits and losses 30 percent and 70percent, respectively.Assuming that the partners agreed to bring their respective capital in proportion to theirrespective profit and loss ratio, and using Par's capital as the base, how much cash is to beinvested by Ah?2. Tha, Rah and Gee entered into partnership by investing the following assets:THARAHGEECASH60,00072,400193,000EQUIPMENT900,000FURNITURE AND FIXTURES40,000219,60015,000Although Gee has contributed the most cash to the partnership, Gee did not have the fullamount of P180,000 available and was force to borrow personally P120,000. The deliveryequipment contributed by Tha has a mortgage of P500,000 and the partnership is to assume theresponsibility for the loan. The partners agree to divide profits and losses 40% to Tha; 40% toRah; and 20% to Gee.The partners further agreed to bring their respective capital interest in proportion to their profitand loss ratio.Using the bonus method, capital transfer among partners should be made3.The partnership contract for the Thick and Thock Partnership provided that Thick is to receiveand annual salary of P70,000, Thock is to receive an annual salary of P50,000, and the remainingprofit or loss is to be divided equally between the two partners. Net income of the Thick andThock Partnership for the year ended December 31, 2021 was P100,000. The closing entry fornet income on December 31, 2021 is a debit to Income Summary for P100,000 and credits toThick Capital and Thock Capital, respectively of:4. On January 1, 2020, Rus and An decided to form a partnership. At the end of the year, apartnership made a net income of P75,000. The capital account of the partnership shows thefollowing transactions.RUSANJANUARY 130,00040,000MAY 16,000JULY 1(12,000)8,000(3,000)12 0001AUGUST 1OCTOBER 112 000

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4. On January 1, 2020, Rus and An decided to form a partnership. At the end of the year, a partnership made a net income of P75,000. The capital account of the partnership shows the following transactions. RUS AN JANUARY 1 MAY 1 JULY 1 | AUGUST 1 ОСТОBER 1 30,000 6,000 40,000 8,000 (3,000) (2,000) Assuming that an interest of 20% per annum is given on average capital and the balance of the (12,000) 12,000 profits is allocated equally, the allocation of profits should be -

4. On January 1, 2020, Rus and An decided to form a partnership. At the end of the year, a partnership made a net income of P75,000. The capital account of the partnership shows the following transactions. RUS AN JANUARY 1 MAY 1 JULY 1 | AUGUST 1 ОСТОBER 1 30,000 6,000 40,000 8,000 (3,000) (2,000) Assuming that an interest of 20% per annum is given on average capital and the balance of the (12,000) 12,000 profits is allocated equally, the allocation of profits should be -

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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On May 1, 2020, Cruz and Ferrer formed a partnership with each contributing the following assets: Cruz Ferrer Cash P 30,000 P 70,000 Machinery and Equipment Building 25,000 75,000 225,000 Furniture and Fixtures 10,000 The building is subject to a mortgage loan of P90,000 which is to be assumed by the partnership. The partnership agreement provides that Cruz and Ferrer share profits and losses 30 percent and 70 percent, respectively. Assuming that the partner agreed to bring their respective capital in proportion to their respective profit and loss ratio, and using Ferrer's capital as the base, how much cash is to be invested by Cruz?
The capital account for the partnership of A and B at March 31, 2020 are as follows: A, Capital - 80,000 B, Capital - 40,000 The partners share profits and losses in the ratio of 3:2 respectively. The partnership decided to admit C as a partner with 1/3 interest in the capital and profits and losses upon his contribution of P30,000. Immediately after C's admission, what should be the capital balances of A, B, and C respectively, assuming bonus is to be recognized?
On January 1, 2022, A and B decided to form a partnership by contributing their respective assets and equities subject to adjustments. Cash Accounts Receivable Building A 50,000 20,000 520,000 B 40,000 10,000 30,000 Computer Equipment An Allowance for Doubtful Accounts of 3% of accounts receivable is set up for each partner, and a mortgage of P30,000 is assumed from building contribution. Compute the adjusted capital account of A after the formation.
32. On January 1, 20x5, DD and EE decided to form a partnership. At the end of the year, the partnership made a net income of P120,000. The capital accounts of the partnership show the following transactions. DD, Capital Cr. EE, Capital Dr. Dr. Cr: O P25,000 P40,000 January 1 April 1. June 1 August 1 September 1 October 1 December 1 P5,000 - - 10,000 10,000 P3,000 1,000 5,000 4,000 5,000 Scanned with CamScanner Assuming that an interest of 20% per annum is given on average capital and the balance of the profits is allocated equally, the allocation of profits should be: DD, P60,000; EE, P59,400 b. DD, P61,200; EE, P58,80O DD, P67,200; EE, P52,800 d. DD, P68,800; EE, P51,200 a. C. (PhilCPA) 33. The partnership of DD and BB was formed and commenced operations on March 1, 20x5, with DD contributing P30,000 cash and BB investing cash of P10,000 and equipment with an agreed upon valuation of P20,000. On July 1, 20x5, BB invested an additional P10,000 in the partnership, DD made a capital…
On December 31 2021, the statement of financial position of ABC Partnership shows the following data with profit or loss sharing ratio of 2.3:5 Cash P15,000,000 Liabilities to others P20,000,000 Other non-cash asset 40,000,000 AA, Capital 15,000,000 BB, Capital 12,500,000 CC, Capital 7,500,000 On January 1, 2022, the partners decided to wind up the partnership affairs. During the winding up, liquidation expenses amounted to P2,000,000 were paid. Non-cash assets with book value of P30,000,000 were sold during January. 40% of total liabilities were also paid during January, P3,000,000 cash was withheld during January for future liquidation expenses. On January 31, 2022, partner AA received P10,000,000. How much is the proceeds from the sale of non-cash assets in January 2022?
the capital account for the partnership of A and B at March 31, 2020 are as follows: A, Capital - 80,000 B, Capital - 40,000 The partners share profits and losses in the ratio of 3:2 respectively. The partnership decided to admit C as a partner with 1/3 interest in the capital and profits and losses upon his contribution of P30,000. Immediately after C's admission, what should be the capital balances of A, B, and C respectively, assuming bonus is to be recognized?
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On December 31, 2020, the Statement of Financial Position of ABC Partnership provided the following data with profit or loss ratio of 1:6:3: Current Assets Noncurrent Assets a. b. : 1,300,000 2,000,000 960,000 900,000 Total Liabilities A, Capital B, Capital C, Capital On January 1, 2021, D is admitted to the partnership by investing P1,000,000 to the partnership for 20% capital interest. C. 840,000 d. 1,200,000 300,000 1,400,000 If the all the assets of the existing partnership are properly valued, what is the capital balance of C after the admission of D? 700,000 900,000
The partnership contract for the SDF and MGB Partnership, a general partnership, provided for annual salaries of P140,000 and P175,000 to SDF and MGB, respectively, with the resulting profit or loss to be divided equally. • Profit before salaries for the year ended June 30, 2021 was P315,000. Required: Give the journal entry to transfer income summary account balance to drawing accounts of the partners.