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 2:3:5 ratio. Ken, anxious to retire, decided t accept a cash settlement of P400,000. How much is the capital balance of Dane after Ken’s retirement? Answer without peso signs but with commas

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 2:3:5 ratio. Ken, anxious to retire, decided t accept a cash settlement of P400,000. How much is the capital balance of Dane after Ken’s retirement? Answer without peso signs but with commas

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

How much cash must be contributed by each of the partners after they contributed their properties (Use this format without the quotation marks: "100000; 25000")
Ana, Bea, and Cara are partners sharing profits and losses in the ratio of 1:1:2, respectively. They decided to liquidate the business. The assets were sold and liabilities amounting to $20,000 were paid. At this point, the capital balances of the partners are as follows: Ana $20,000 credit Bea 15,000 debit Cara 30,000 credit Bea is personally insolvent. 1. How much cash is available for distribution to partners? 2. How much cash is received by Ana and Cara?
Hershey, Inigo, Jessa and Kyle are partners who share profits and losses in the ratio of 3:2:1:4. As of the current date, the partners become insolvent so they decide to liquidate their business. The capital balance of each partner amount to P30,000, P35,000, P20,000 and P50,000 to Hershey, Inigo, Jessa and Kyle respectively. At this time, total liabilities of the partnership amount to P180,000. From the data above, answer the following independent questions: 14. If the partnership received P185,000 from the sale of all non-cash assets of the partnership, determine the amount of cash that Hershey is to receive assuming there is no cash balance before realization and all partners are insolvent at the time of liquidation. A. P9,000 C. PO B. P2,000 D. P1,500 15. If Kyle receives P12,000 as settlement of his interest, how much were the non-cash assets sold assuming there is no cash balance before realization? A. P220,000 B. P95,000 C. P315,000 D. P180,000
Please answer and show the solution. Thank you!
What is the correct answer?
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
1.Tom, Greg, and Tim are partners who share profits 50%, 25%, and 25%. Their capital balances were $117,000, $78,000, and $45,000, respectively, before Tim's retirement. Tom and Greg each paid Tim $30,000 from their personal assets to buy half his interest. After Tim has withdrawn, Tom will have a capital balance of $____________. 2.Sarah, Lila, and June are partners who share profits 40%, 20%, and 40%. Their capital balances were $280,000, $120,000, and $80,000, respectively, before June’s retirement. June was paid $56,000 from partnership assets to buy her interest. After June has withdrawn, Sarah will have a capital balance of $____________. 3.Rob and Chrissie are partners who share profits 60% and 40%. Their capital balances were both $60,000 before Dora was admitted to the partnership. Dora contributed $100,000 in cash to the partnership for a 30% interest. After Dora is admitted to the partnership, Rob will have a capital balance of $____________. 4.Lacy and Jenny are…
Gerald and Julia are joining their separate business to form a partnership and they agreed to share profits in the manner of 55% for Gerald and 45% for Julia. Property is to be contributed for a total capital of P800,000. The partners agreed to make their capital accounts equal after formation. How much cash must be contributed by each of the partners after they contributed their properties? Gerald Julia Book Value Fair Value Book Value Fair Value Accounts Receivable 60,000 60,000 - - Inventories 60,000 90,000 160,000 180,000 Equipment 100,000 80,000 180,000 190,000 Accounts Payable 30,000 30,000 20,000 20,000
Aaron and Jireh share profits in the ratio of 2:3. Their capital contributions are: P150,000 to Aaron and P250,000 to Jireh. Give the journal entries to record the admission of BJ under each of the following assumptions: a. BJ purchases 1/3 interest of Aaron for P50,000. b. Jireh sells ½ of her interest to BJ for P140,000. c. BJ invests P120,000 for a ¼ interest in the firm. Partners agreed that the new capitalization is P480,000. d. BJ invests 90,000 for a 1/5 interest in a new capitalization of P500,000.
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
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
Peter, James, and John are partners with capital investments of P450,000, P350,000 and P500,000 respectively. Upon the formation of the business, the three agreed to share profits and losses in the ratio of 4:3:3. Andrew was admitted into the partnership by investing cash of P488,000 for a 30% interest in the partnership. How much is the bonus given by James to Andrew? Note: Round of answer to the nearest peso.