Cabang, a partner in the Cabang and Menace Partnership has a 30% share in the partnership profit and loss. His capital account had a net decrease of P60,000 in 2003. In 2003, he withdrew P130,000 against his capital and invested property valued at P25,000 in the partnership. The net income of the partnership is ANSWER IS 150,000

Cabang, a partner in the Cabang and Menace Partnership has a 30% share in the partnership profit and loss. His capital account had a net decrease of P60,000 in 2003. In 2003, he withdrew P130,000 against his capital and invested property valued at P25,000 in the partnership. The net income of the partnership is ANSWER IS 150,000

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

During the year, the ABC partnership's operations generated a loss. The partnership agreement provides for the following P/L sharing provisions: Interest of P2,000, P3,000, and P5,000 to partners A, B, and C, respectively Salary of P15,000 to partner A Any remainder is allocated equally. freshma freshman freshma If the share of partner A in the loss is P8,000, how much is the net loss for the period?
contributed $1,000 for his one-third partnership interest in profits and loa88. 2. Ernesto and Fran are general partners in the EF partnership. Ernesto Fran contributed $2,000 for a two-thirds partnership interest in profits loss. The partnership borrowed $1,200 to invest in marketable securiti which it purchased for $4,200. When the partnership assets had appreciatl to $4,800, Ernesto sold one-half of his general partnership interest to Gary for $600 cash. What is the tax consequence to Ernesto of the sale?
The partnership of Gordon, Handel, and Mitchell is considering possible liquidation because partner Mitchell is personally insolvent. The partners have the following capital account balances: $120,000, $140,000, and $80,000, respectively, and share profits and losses 35%, 45%, and 20%, respectively. The partnership has $400,000 in noncash assets that can be sold for $300,000. The partnership has $20,000 cash on hand, and $80,000 in liabilities. What is the minimum that partner Mitchell’s creditors would receive if they have filed a claim for $100,000? A. 0 B. 20,000 C. 60,000 D. 80,000 E. 100,000
Dior, Christian and Jovani have capital balances of P240,000, P400,000 and P144,000, respectively and they share profits in the respective ratio of 4:2:1. Christian received P208,000 as a result of the liquidation of the partnership. Loss on assets realization is:
Mercedes, Melinda and Julieta are partners sharing profit and loss 40%, 30% and 30% respectively. Capital balances of the partners before the retirement of Mercedes were at P450,000, P425,000 and P400,000. The company sustained a net loss of P45,000 during the year. The partners were allowed to withdraw P10,000 each Instruction. Give the entry to record the retirement of Mercedes, assuming no Bonus or Revaluation will be recorded
BRAIN and FREEZE have capital balances of P750,00 and P500,000 and share in partnership profits and losses in the ratio of 3:2 each respectively. On November 30, 20x10, the partners admitted HURTS into the partnership by investing P200,000 cash and a machine to be used by the partnership for a 20% interest. After HURT's admission, BRAIN's capital increased by 10%. What is the fair value of the machine invested by HURT in the partnership?
15. Kuya Kim Atienza, a partner in the KAPA partnership, has a 30% participation in the partnership profits and losses. Kim Atienza’s capital account has a net decrease of P45,000 during the calendar year 2020. During 2020, Kim Atienza withdraws P100,000 (charged against his capital account) and contributed property valued at P25,000 to the partnership. What was the net profit of the KAPA partnership for the year 2020? 16. On March 1. 2021, Rafael M. Lopez formed a partnership with Conrado T. Valix and made the contributions:Cash …………………………………P 350,000Equipment…………………………. 100,000At the end of the year, Lopez received a share of P54,000 on the P120,000 profits. What should be the share of Valix on the partnership profits? Kindly show your solution on each problem. Thank you.
Please explain it properly
The average partnership capital balance in 2017, A is $100,000, B is $55,000 and C is $30,000. Allies get 5% of their average capital balance. After deducting the salary for A of $20,000, and for B of $10,000, the remaining profit and loss is divided equally. But in 2017 partnership A, B, and C suffered a loss of $22,000 before deducting interest and salaries for partners. What is the change in capital A?
Zach and Christine are partners with USD60,000 and USD20,000 capital balances, respectively. Gains and losses are divided in a 6:4 ratio. The partners decided to form a new partnership with Sookie, who invested land worth USD115,000 in exchange for a 30% interest in the new partnership. Sookie's cost of the land was USD102,000 . What is Zach's capital balance now that Sookie has joined the partnership?
Andrew, Bobby and Calyx are partners whose contributions are as follows: Andrew -- P 600,000; Bobby -- P 400,000 and Calyx -- P 200,000. They agreed to divide profits or losses in the ratio of 35:25:40, respectively. How much is the ending capital of Calyx if the partnership incurred a loss of P 80,000?