5.9 Bah, Lee and P 20,000, respectively. The partners agreed to the follo distribution of profits: a. 10% interest on the capital balances b. Lee is entitled to a salary of P 6,000 c. Wag is guaranteed a minimum share of P 12,000. iw Ad. Remainder is to be divided 3:3:4 for Bah, Lee and Wag, T L respectively. MEunor orit une 000,AS 9 REQUIRED: What is the minimum profit to be earned by the of R 10 00

5.9 Bah, Lee and P 20,000, respectively. The partners agreed to the follo distribution of profits: a. 10% interest on the capital balances b. Lee is entitled to a salary of P 6,000 c. Wag is guaranteed a minimum share of P 12,000. iw Ad. Remainder is to be divided 3:3:4 for Bah, Lee and Wag, T L respectively. MEunor orit une 000,AS 9 REQUIRED: What is the minimum profit to be earned by the of R 10 00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

PROBLEM 1 (FTG REVISED) VAL, KHU, and LAWRENCE are partners in VAKHULAW CO. sharing profits in the ratio of 3:3:2. Investments are P600,000, P400,000, and P300,000, respectively. The partners agreed to admit TYONG-GO on the following basis: TYÖNG-GO is to pay VAL, P400,000 for 1/2 of VAL's interest; TYONG-GO is also to invest P300,000 in the business. The partners agreed that revaluation of assets must be determined based on the agreed capital. The total capital of the partnership is to be P2,000,000, of which TYONG-GO's interest is to be P500,000 upon admission. REQUIRED: 1. Prepare a statement of partners equity that will show the capital balances of VAL, KHU, LAWRENCE and TYONG-GO after admission of TYONG-GÒ, respectively. Present your solution and the statement in good form. 2. Prepare the entries upon admission of TYONG-GO.
3.
Solve the problem
Mohammed and Rashid are partners sharing profits in the ratio of 3:2 with capitals of OMR 50,000 and OMR 40,000 respectively. Interest on capital is agreed at 8% p.a. Interest on drawings is fixed at 10% p.a. The drawings of the partners were OMR 15,000 and OMR 10,000. Mohammed is entitled to a salary of OMR 12,000 p.a. and Rashid is entitled to get a commission of 10% on the Net Profit before charging such commission. The Net Profit of the firm before making the above adjustments was OMR 60,000 for the year ended 2021. Prepare the profit and loss appropriation account and capital Accounts
4.3 The Capital of bah and Rah are as follows: Bah 25, 000 Rah 15,000 They share profits equally. Kuh will buy 1/5 the interest and earnings of Bah for 8,000 and Dah will buy 1/2 the interest and earnings of Rah for 7,000. REQUIRED: a. Entry to record the admission of the new partners. b. What is the interest of each partner in the new partnership? c. What is the new profit and loss sharing ratio?
The partners of Dan and Ken are engaged in trading. Dan's original capital was P40,000 and Ken 's was P60,000. They agreed to share profits and losses as follows: Dan Ken Php28,000 10% 30% Salaries Interest on original capital Balance Php40,000 10% 70% а. Р44,600 b. Р46,400 If the profits for the year were P120,000, what share of the profits would Dan receive? c. P57,400 d. P75,600 а. Р2,600 b. (Р22,600) [f the losses for the year were P20,000, what share of the loss would Ken receive? c. (P2,600) d. P5,200
QUESTION 2 The net income reported on the income statement for the current year was SAR 250,000. Depreciation recorded on fixed assets and amortization of patents for the year was SAR 40,000 and SAR 9,000 respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: End Beginning Cash SAR 50,000 SAR 60,000 Accounts receivable 112,000 108,000 Inventories 105,000 93,000 Furniture & Fixture 50,000 60,000 Prepaid expenses 4,500 6,500 Accounts payable (merchandise creditors) 75,000 89,000 What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method? Click Save and Submit to save and submit. Click Save All Answers to save all answers. W Desktop
2. The partnership of David White and Paul Wacker incurred net income of $40,000 for the current year. David had invested $30,000 and Paul had invested $45,000. Calculate he distribution share to each partner if profits are divided in the ratio of:a. Investmentsb. 3:1
3.14 Cue and Peed entered into a partnership on March 1, 200A. They T agreed that Cue, the managing partner was to receive a salary 10 neallowance of P 24,000 per year and a bonus of 10% of the net profit after the salary allowance but before the bonus. The balance is to b e distributed in the ratio of their initial capital. Selected ledger accounts on December 31, 200A prior to adjustments showed the following balances: Salesgns 22ol bns P 300,000 ge gnisda o3,000 ollo) visoo 180,000 1sini s10 48,000 Sales Returns 290sw zunod ts Purchases 1 Operating Expenses bs la01Stni o1o 48,000 200,000 00020,000 1o g 2290x Cue Capital Cue Drawing Peed Capital 0 Peed Drawing Inventories at year-end were bns I 100,000 10,000 as follows: Office supplies, P 810 and merchandise, P 50,000. Prepaid insurance of 0P 1,200 and accrued expenses of P 400 are to be recognized. Depreciation of P 4,000 is to be provided. REQUIRED: Prepare the Statement of Partners ' Equity for the 10- month period ended December…
32. Partners X, Y and Z had average capital account balances during the P400,000, P500,000 and P100,000, respectively. The partnership agreement provides for the following division of profits and losses. Interest: 6% on average capital balances of each partner Salaries: X, P100,000; Y, P150,000; and Z none Remainder: X 20%; Y 30%; Z 50%. If the aggregate share of X in the profit is P112,000, how much should have been the partnership profit? year of
5. Show solution in good accounting form
X, Y and Z of XYZ Partnership have beginning capital balances of P500,000, P400,000, and P300,000 respectively. The firm has obtained a net profit of P112,000 Salaries of P15,000, P20,000, and P25,000 will be given to each partner respectively, and interest at 3% of the beginning capital balances would be allowed in profit distribution. Any remaining amount will be divided to each partner at 3:11 the share of each partner in the net income would be A.P28.080 P50.560: P33.360 B.P28,080, P35,200; P48,720 C.P39,600 P35,2 10, P37,200 D. P35,600, P-50,5-50; P21,540