Exercise 4-5. Record the entries of the partnership dissolution for the following independent cases: Case A - Snow and Sky are partners who share profits and losses in the ratio of 6:4. On March 1, 2023 the following data are available from the books of the partnership. Cash Accounts receivable Inventory Equipment, net Total 80,000 120,000 300,000 500,000 Accounts payable Snow, capital Sky, capital Snow, drawings Sky, drawings 1,000,000 Total 280,000 300,000 500,000 (50,000) (30,000) 1,000,000 The net income of the partnership prior to admission of Shadow is P50,000. Also, the partners agreed to revalue the inventory to P320,000 and equipment to P530,000. Shadow is to be admitted for 25% interest in the partnership by direct purchase from the partners for P250,000. Case B - Psalm and Trisha have capital balances of P150, 000 and P180, 000, respectively. Glenda is to invest P60, 000 for 15% in the partnership interest and also in the profit and loss. There is an undistributed net income in the amount of P80,000. Partners Psalm and Trisha share profit and loss 65:35. itostio Istigeo al
Exercise 4-5. Record the entries of the partnership dissolution for the following independent cases: Case A - Snow and Sky are partners who share profits and losses in the ratio of 6:4. On March 1, 2023 the following data are available from the books of the partnership. Cash Accounts receivable Inventory Equipment, net Total 80,000 120,000 300,000 500,000 Accounts payable Snow, capital Sky, capital Snow, drawings Sky, drawings 1,000,000 Total 280,000 300,000 500,000 (50,000) (30,000) 1,000,000 The net income of the partnership prior to admission of Shadow is P50,000. Also, the partners agreed to revalue the inventory to P320,000 and equipment to P530,000. Shadow is to be admitted for 25% interest in the partnership by direct purchase from the partners for P250,000. Case B - Psalm and Trisha have capital balances of P150, 000 and P180, 000, respectively. Glenda is to invest P60, 000 for 15% in the partnership interest and also in the profit and loss. There is an undistributed net income in the amount of P80,000. Partners Psalm and Trisha share profit and loss 65:35. itostio Istigeo al
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:muqu
Exercise 4-5. Record the entries of the partnership dissolution for the
following independent cases:
Case A - Snow and Sky are partners who share profits and losses in the
ratio of 6:4. On March 1, 2023 the following data are available from the
books of the partnership.
Cash
Accounts receivable
Inventory
Equipment, net
Total
80,000
120,000
300,000
500,000
been to no
Accounts payable
Snow, capital
Sky, capital
Snow, drawings
Sky, drawings
1,000,000 Total
280,000
300,000
500,000
remer (5
(50,000)
(30,000)
1,000,000
The net income of the partnership prior to admission of Shadow is P50,000.
Also, the partners agreed to revalue the inventory to P320,000 and
equipment to P530,000. Shadow is to be admitted for 25% interest in the
partnership by direct purchase from the partners for P250,000.
Sprze
Case B - Psalm and Trisha have capital balances of P150, 000 and P180,
000, respectively. Glenda is to invest P60, 000 for 15% in the partnership
interest and also in the profit and loss. There is an undistributed net income
in the amount of P80,000. Partners Psalm and Trisha share profit and loss
out mon vitostio Istige a
65:35.
Transcribed Image Text:Case C-Jose, Josie, and Josel are partners sharing profits and losses of
30%, 30%, and 10%, respectively. The December 31, 2023 trial balance
included the following information:
Cash
Inventories
Equipment
Patent
Total
000,00
Debits
P 400,000
500,000
Accounts Payable P 50,000
Credits
Josel, Loan
40,000
800,000
900,000
500,000
(590,000)
P1,700,000
700,000 Jose, Capital
100,000
Josie, Capital
Josel, Capital
Net Loss
P1,700,000 Total
On January 1, 2024, a partner decided to retire from the partnership and by
mutual agreement among the partners, the following adjustments shall be
made:
a. Inventories amounting to P50,000 is considered obsolete and must be
written off.
b. The fair value of the equipment is P250,000.
Josel retired and received P250,000 in settlement of her total interest.
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