Gerald and Julia are joining their separate businesses 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. Gerald Book Value Fair Value Accounts Receivable 60,000 60,000 Inventories 60,000 90,000 Equipment Accounts Payable 100,000 30,000 80,000 30,000 Julia Book Value Fair Value Accounts Receivable Inventories 160,000 180,000 Equipment Accounts Payable 180,000 190,000 20,000 20,000

Gerald and Julia are joining their separate businesses 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. Gerald Book Value Fair Value Accounts Receivable 60,000 60,000 Inventories 60,000 90,000 Equipment Accounts Payable 100,000 30,000 80,000 30,000 Julia Book Value Fair Value Accounts Receivable Inventories 160,000 180,000 Equipment Accounts Payable 180,000 190,000 20,000 20,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

The following are exclusive property under the system of conjugal partnership of gains, which is not? Property before marriage Inheritance during marriage Property acquired during marriage out of exclusive money Rental income on a property acquired before marriage
how would the increase in liabilities of other partners assumed would contribute to the partner's interest?
In admitting new partners, assets contributed by partners are recorded at their replacement value. Why is that?
List down the adjusted assets and liabilities of each partner to determine partner's capital.
A partner who contributes money or property to a common fund O A. Secret partner O B. Silent partner C. Capitalist partner O D. Industrial partner
If the personal assets of the partners are exposed to the business debts, it is called? O a. Mutual Agency O b. Limited life O c. Unlimited Liability o d. Co-ownership of property
. How are “advances or drawings of money or property against a partner’s distributive share of income” treated?
The withdrawal of capital by a partner from the business of partnership will be: a. Debited to partners' capital account b. Debited to profit and loss appropriation account c. Credited to profit and loss account d. Credited to partners' capital account The amount of drawings taken by each partner will be: a. Debited to partners' current account b. Debited to profit and loss appropriation account c. Credited to partners' current account d. Credited to profit and loss account The closing balances of partners' current account will be: a. X RO 59784 (Dr), Y RO 17825 (Cr), Z RO 37622 (Dr) b. X RO 58748 (Dr), Y RO 16852 (Cr), Z RO 36620 (Dr) c. X RO 58784 (Dr), Y RO 16825 (Cr), Z RO 36622 (Dr) d. X RO 58984 (Dr), Y RO 16925 (Dr), Z RO 36626 (Dr)
Discuss the rule as to the share of profits and losses of the partners among themselves.