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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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: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.
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.
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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