A new partner Dan, was admitted on June 1, 2022 who purchased Allan's capital by giving his car costing P250,000, but with a book value of P125,000, and a market value of P100,000. Allan, capital was P350,000. How much was credited to Dan. Capital?

A new partner Dan, was admitted on June 1, 2022 who purchased Allan's capital by giving his car costing P250,000, but with a book value of P125,000, and a market value of P100,000. Allan, capital was P350,000. How much was credited to Dan. Capital?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: nd losses in a fixed ratio of 40%: 40%: 20% respectively. On this day a new partner (Salem) joins…

A: When a new partner buys/gets/acquires/takes his share from an old partner in a specific ratio, the…

Q: In recording the initial investment in the new partnership of X, she contributed her personal…

A: Solution: Cost of computed = P800,000 Total useful life of computer = 10 years Annual depreciation…

Q: In recording the initial investment in the new partnership of X, she contributed her personal…

A: Partnership: It refers to an agreement that takes place between two or more than two people who gets…

Q: PART III (Spts each)-Show your solution in a separate paper. On March 1, 2022, PP and QQ decide to…

A: When two businesses come together and form a partnership then all the assets and liabilities of…

Q: RNO is a partnership between Rami. Nancy, and Omar. On 1/1/2020, their capital balances were: $…

A: 30% means 0.3 share in 1. Old profit sharing ratio:-50%,30% and 20% As sacrificing ratio is not…

Q: ag, Lee and Bench are partners having the following capital balances of P 11,200, P13,000 and P5,800…

A: In partnership accounting, two or more partners collectively run a business to earn profit with the…

Q: 6. Partners X, Y and Z have capital balances capital balances in a partnership of P140,000, P60,000…

A: Partnership is form a business entity. It involves two or more persons who perform the business…

Q: Banner and Strange are partners who have capital balances of P65,000 and P35,000 and share profits…

A: Given, (a) Banner's Capital = P 65,000 (b) Strange's Capital = P 35,000 (c) Total Capital prior to…

Q: John and Anne are partners. John has a capital balance of $48,000 and Anne has a capital balance of…

A: The correct answer is: (B) Bailey, capital will be credited for $13,000.

Q: ur and AJ formed a partnership with Aljur investing his th a market value of P80,000 which…

A: Aljur and AJ have formed a partnership , where Aljur has invested land and has 40% share in equity .…

Q: Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in…

A: Cirque, LLCBalance SheetTax Basis704(b) or FMVAssets Cash$150,000$150,000…

Q: 17. Shivam and Vahideh are partners who share profit/loss in the ratio of 2:3. Shivam has a capital…

A: The partnership comes into existence when two or more persons agree to do the business and share…

Q: Kiko Contis and Heaven Santos formed a partnership with the contributions: - Kiko Contis…

A: When two or more than two persons agree to share profit and losses as per their agreed terms to run…

Q: 10. Fiona and Gary are partners with capital balances of P350,000 and P250,000, respectively. They…

A: As it is specifically asked to answer letter d and e. We are answering only asked sub parts of the…

Q: Karasuma and Irina are partners whc have capitals of P6,000 and P4,800 and who share profits in the…

A: GIVEN DATA Karasuma and Irina are partners who have capitals of P6,000 and P4,800 and who share…

Q: Cam, Andy and Rae are partners in CAR Brokers and share losses in a 3:4:3 ratio, respectively. The…

A: Partnership means where two or more person comes together to form the business and share profit and…

Q: C, P and A are sole proprietors looking to form a new partnership. C is to contribute cash of…

A: Partnership is a form of business organization where two or more entities come into a legal…

Q: Abe, Ben, and Cain are partners in the ratio of 3:4:2. Abe, Ben and Cain has a capital balance prior…

A: Since you have asked multiple questions, we will solve the first question for you . If you want any…

Q: AQUA and BEAST are partners in AX Entertainment with capital balances of P300,000 and P250,000…

A: According to the concepts of Partnership, when a partner is taking admission to the partnership firm…

Q: C, P and A are sole proprietors looking to form a new partnership. C is to contribute cash of…

A: Partnership Capital While forming the partnership it is important to assess the details of sharing…

Q: A and B are partners with the following contributions: Partner A, P300,000 and Partner B, P200,000.…

A: Fair value of asset. 80000 less: amount withdrawn by B against capital asset. (350000)…

Q: If the partnership of Jack and King has a book value of P250,000 and Ace purchases one half interest…

A: If the share of the firm is purchased by someone then business worth should be calculated on the…

Q: Sam a partner in ST Partnership, is entitled to 40% of the profits and losses. During 2011, Sam…

A: Calculation of Sam share of profit in amount Sam share of Profit and loss = 40% CALCULATION…

Q: Banner and Strange are partners who have capital balances of P65,000 and P35,000 and share profits…

A: SOLUTION- 1-CAPITAL BALANCE OF BANNER =65000 AND STRANGE = 35000 2- PROFIT AND LOSS AFTER ADMISSION…

Q: se explain it properly

A: Given: To find the capital balances as, Capital Balances of Banner = P 65,000 and Strange = P 35,000…

Q: 10. How much is the capital balances of Wanda after Banner's withdrawal? * Banner and Strange are…

A: Given, (a) Banner's Capital = P 65,000 (b) Strange's Capital = P 35,000 (c) Total Capital prior to…

Q: Y and Z have capital balances of $80, 000, $180,000 and $60,000 respectively. Immediately prior to…

A: Partnership refers to the act of agreement or the contractual arrangement between two or more people…

Q: On May 1, 2022, Carlo and Jamie formed a partnership by contributing P500,000 each. In addition to…

A: The non cash assets invested by partners are recorded at fair market value.

Q: The partners of Dan and Ken are engaged in trading. Dan’s original capital was P40,000 and Ken ‘s…

A: Formula: Interest on capital = capital amount x interest rate

Q: C, P and A are sole proprietors looking to form a new partnership. C is to contribute cash of…

A: Partnership is a form of business organization under which two or partners come into an agreement to…

Q: Carlo invested the following in the partnership being formed with Jamie: Cash of P60,000; ● . Land…

A: In consideration of the above information, Cash is P60,000; P200,000 in land having a P410,000…

Q: Partners Lacoste, Lancome and Lanvin have capital balances of P 11,200; P 13,000 ; and P 5,800,…

A: Given that, Capital balances of - Lacoste = P11200 Lancome = P13000 Lanvin = P5800 Profit and…

Q: Ali and Fatima are partners whose capital balances are $400,000 and $300,000 and who share profits…

A: Note: Goodwill brought by Ahmed is divided between existing partners in the old ratio.

Q: pital accounts of P350,000, P700,000 and P450,000 respectively. They share profits and losses in a…

A: Partnership according to section 3 (1) of the partnership act 1961 is known as the relation between…

Q: Raul and Bianca are partners. Raul has a capital balance of $46,000 and Bianca has a capital balance…

A: Journal entry is the reporting of the business transactions on daily basis in order to prepare a…

Q: Banner and Strange are partners who have capital balances of P65,000 and P35,000 and share profits…

A: Given, (a) Banner's Capital = P 65,000 (b) Strange's Capital = P 35,000 (c) Total Capital prior to…

Q: On May 1, 2022, Carlo and Jamie formed a partnership agreeing to share profits and losses in the…

A: Introduction: A partnership is a type of business in which the owners have unlimited personal…

Q: 1. At the Beginning of Year 1 Peter and Paul want to establish a new business in the form of a…

A: When someone establishes a firm, they commit capital to it. This capital might take the form of…

Q: How much is the capital of CABLES Trading upon formation?

Q: riginally bought at P160,000 but has a second-hand value of P100,000. P is to contribute a cash…

A: Partnership is a form of business organization under which two or partners come into an agreement to…

Q: Harry, Tony, and Liza run a partnership firm and share in the profits 1:3:2, respectively. In the…

A: The partnership firm is when two or more partners makes an agreement to start a firm together with…

Q: Dane, Wayne and Ken are partners with capital accounts of P350,000, P700,000 and P450,000…

A: When a partner retires from the partnership the gain/loss arising on such retirement will be…

Q: John invests office equipment with a fair market value of $63,000, manufacturing equipment with a…

A: Balance sheet :— It is one of the financial statements that shows a list of final ending balances…

Question

A new partner Dan, was admitted on June 1, 2022 who
purchased Allan's capital by giving his car costing P250,000,
but with a book value of P125,000, and a market value of
P100,000. Allan, capital was P350,000. How much was
credited to Dan. Capital?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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.

Similar questions

Cam, Andy and Rae are partners in CAR Brokers and share losses in a 3:4:3 ratio, respectively. The balance sheet on December 31, 2023, when they decide to liquidate the business, is as follows: Assets Liabilities and Capital Cash $1,875,000 Accounts Payable $1,000,000 Noncash Assets $937,000 Cam, Loan 312,000 Cam, Capital 500,000 Andy, Capital 375,000 Rae, Capital 625,000 Total Assets $2,812,000 Total Liabilities & Equities $2,812,000 Note: A revaluation was done for non-cash assets valuing them at $1,002,000. The noncash assets were then sold for $800,000. As the accountant for the partnership, how do i prepare a Revaluation account
Dane, Wayne and Ken are partners with capital accounts of P350,000, P700,000 and P450,000 respectively. They share profits and losses in a 3:3:4 ratio. Ken, retired and was paid P540,000. How much was the capital balance of Wayne after Ken’s retirement?
Ron Burgundy and Jack Lime form a partnership called Anchormen United. Ron invests $30,000 worth of cash, and a building that cost him $90,000. The fair value of the building is $95,000. Jack Lime invests $15,000 in cash, accounts receivable $13,000 less allowance for doubtful accounts of $2,000, and equipment $30,000 less accumulated depreciation of $4,000. The fair value of the equipment is $23,000. Journalize Ron Burgundy’s investment in the partnership. Journalize Jack Lime’s investment in the partnership.
Nora, Vilma and Sharon are setting up the Past Stars Company and agreed to contribute cash and non-cash assets with total capital at P2,500,000. If there profit and loss ratio will be 5 : 4 : 3 that is based on contributed capital, how much should Sharon invest ?
Please help me
What is the answer to the question?
Please answer and show the solution. Thank you!
Delia and Danny are partners with capital balances of P3,000,000 and P2,000,000, respectively. They share profits and losses in the ratio of 3:2, respectively. If Dada purchased 1/4 of the equity of Danny for P900,000. How much is Danny's capital balance after Dada's admission?P1,500,000n
Prepare your answers using excel or clearly written computations. Show your work for maximum points. 3. Diego transfers real estate with an adjusted basis of $260,000 and fair market value of $350,000 to a newly formed corporation in exchange for 100% of the stock. The corporation assumes the liability on the transferred real estate in the amount of $300,000. Determine Diego’s recognized gain on the transfer and the basis for his stock.
Q10. Please answer the question correctly with solution ASAP. Thank you.
RAMI has owned and operated a proprietorship for several years. On January 1, 2018, he decides to terminate this business and become a partner in the firm of ASMA and RAMI. ✓ RAMI's investment in the partnership consists of HK$ 140,000 in CASH, and the following assets of the proprietorship: ✔ ACCOUNTS RECEIVABLE HK$130,000 less allowance for doubtful accounts of HK$20,000, ✓ and EQUIPMENT HK$200,000 less accumulated depreciation of HK$45,000. It is agreed that the allowance for doubtful accounts should be HK$28, 000 for the partnership. The fair value of the equipment is HK$175, 500. ASMA brings with her $200,000 Book value in CASH, $ 280,000 Fair value. on Dec. 31, 2018, the net income was $100,000 and the income ratios are RAMI 70%, ASMA 30%. Prepare the journal entry to record the division of the net income. Instructions Journalize RAMI's admission to the firm of ASMA and RAMI.
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