4.9 Capital balances of Ann and Eloida before the admission of May andCristel are shown below.AnP 20,000Eloida30,000P 50,000They share profits 20% to Ann and 80% to Eloida. May investsP 10,000 for a 15% interest and Cristel; invests P 10,000 for a 10%interest in the new firm. The agreed new capital is P 80,000.REQUIRED: Give the entry (compound entry) to record the admission0000of the new partners.

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

Answered: Capital balances of Ann and Eloida…

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

2.
A and B are two partners. Theyagreed to allow interest on capital@5% per annum. Capital accountsas 1.4.16 were A 20,000 RS and B15,000 rsA introduced further capital of rs5000 on 1.10.16 and B introduced rs3000 on 1.10.16Calculate interest on Capital of eachPartner as 31.3.17 Please avoid solutions in image thnku
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
The A Company whose ending capital is P89,000 will be joined by Mr. B to form a partnership. Mr. B is to invest sufficient cash to have 30% interest in capital and in interest after following the following adjustment of the accounts of The A Company: Merchandise inventory will be increased by P3,500, supplies amounting to P2,500 is fully consumed and the Equipment purchased for P61,000 which has a book value P55,000 should be 90% depreciated. B is to invest?
Partners Thelma Lou and Aunt Bee each have a $50,000 capital balance and share profits and losses in a 2:1 ratio, respectively. The cash balance is $40,000, non-cash assets total $210,000, and liabilities total $150,000. If the non-cash assets are sold for $180,000, what amount will Thelma Lou receive after liquidation? $40,000 O $70,000 O $30,000 O $50,000 Which of the following statements about partnership financial statements is false? O The salary that a partner receives for profit sharing is reported on the partnership income statement. O The financial statements of a partnership are similar to those of a proprietorship. The partnership balance sheet will contain a withdrawal account for each partner. A partnership's balance sheet will contain a capital account for each partner.
1. Show how the following items will appear in the capital accounts of the partners Ali and Ahmed when their capital is a) fixed b) fluctuating Particulars Ali (R.O) Ahmed(R.O) Capital on 01.01.2021 90,000 70,000 Drawings during 2021-2022 12,000 9,000 Interest on Drawings 360 270 Interest on Capital 5,400 4,200 Partner's salary 12,000 Commission 6,000 Share of profit for 2021-22 6,000 4,000
The following are the capital balances and share in each profit of Ring Partnership: Aragorn 300 50% Legolas 200 30% Gimli 200 20% 1. If Gandalf was admitted by investing sufficient cash for 20% interest, how much must be his investment? 2. If Gandalf was admitted by paying the partners P100 for 10% interest in the firm, how much will be the capital of Aragorn after the admission if implied goodwill was recorded? 3. How much did Gandalf have invested for 25% interest if after his admission in the firm the capital balance of Legolas increased by P24? 4. If Gimli withdrew from the firm and received P280, how much is the capital of Legolas if prior to withdrawal, the firm recorded a goodwill of P200. 5. If the partnership was liquidated and P50 is ready for distribution, how much will Gimli received? 6. If the partnership was liquidated and Gimli received P140, how much did Legolas received? (Aragorn is insolvent) 7. if all non-cash assets were sold at a loss of P200, how…
Jeremy and Eli are partners who share profits and losses equally. The capital accounts of the partners have the following balances: Jeremy 180,000 Eli 70,000 Thadez desires to join the firm and offered to invest 96,000 for a 1/3 interest. Jeremy and Eli declined his offer, but they extended a counter-offer to Thadez of 88,000 for a 25% interest in the capital and profits and losses of the firm. If Thadez accepted the offer, what would be the balance of Jeremy’s capital account after Thadez’s admission? Group of answer choices 178,250 187,000 199,000 181,750
6.
5. Show solution in good accounting form
7. Determine the capital to be credited to Austin. Celestine and Jewel are partners who share income in the ratio of 2:3. The partners agree to admit Austin as a partner upon investing P150,000 cash for a 1/5 interest in the firm. The assets of the firm are fairly valued except for a building that is overvalued by P150,000. The capital accounts of Celestine and Jewel show balances of P450,000 and P300,000.

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS