Illustration 1: Determine the value of goodwill based on 3 years purchase of last 5 years averageprofit, from the following information of a partnership firm of Nilesh and Nikunj. Last five years'profit information is as under:YearProfit2011-122,00,0002012-132,10,0002013-141,90,0002014-152,15,0002015-162,20,000

To determine the value of goodwill based on 3 years' purchase of the last 5 years' average profit,…

Answered: Illustration 1: Determine the value of…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 28CE

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1)The profits of the last five years were: OMR 32,500, OMR 25,500, OMR 32,000, OMR 15,525 (Loss) and OMR 12,525 (Loss) Calculate goodwill at thrice the average profits of last five years profits.
During the past two years, through extensive advertising and improved customer relations, jEAN Corporation estimated that it had developed customer goodwill worth $500,000. For the current year, determine the amount of goodwill Orange may amortize. a.$26,667 b.$-0- c.$16,667 d.$33,333
Use the following information for the next two questions: A and B formed a joint operation. The following were the transactions during the year: A B Total purchases 400 320 Total sales 960 720 Expenses paid 800 Other income 40 The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining profit or loss is divided equally. How much is the profit (loss) of the joint operation? _____________________ On the cash settlement between the joint operators a. A pays B ₱368 b. B pays A ₱368 c. A pays B ₱428 d. B pays A ₱428
Use the following information for the next two questions: A and B formed a joint operation. The following were the transactions during the year: A B Total purchases 400 320 Total sales 480 240 Expenses paid 800 Other income 40 The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining profit or loss is divided equally. 23. How much is the profit (loss) of the joint operation? c. 840 d. (840) a. 760 b. (760) 24. On the cash settlement between the joint operators, a. A pays B P368. b. B pays A P368. c. A pays B P428. d. B pays A P428.
A and B formed a joint operation. The following were the transactions during the year: A B Total purchases 200 160 Total sales 240 120 Expenses paid 400 Other income 20 The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining profit or loss is divided equally. Compute the profit or loss of the joint operation.
The capital accounts of Scott and Tucker at the end of the fiscal year 2019 are as follows: Scott, Capital January 1 Balance P210,000 Мay 1 Investment 90,000 October 1 Withdrawal Р60,000 Tucker, Capital January 1 Balance P150,000 April 1 Withdrawal P30,000 The partnership profit for the year ended December 31, 2019 was P300,000. Instruction: Prepare schedule of profit allocation and journal entries to record transfer to profit to the capital accounts under each of the following independent assumptions: 1. Profit is divided 60% to Scott and 40% to Tucker. 2. Profit is divided into ratio of capital balances at the beginning of the period. 3. Profit is divided in the ratio of average capital balance. Interest of 8% is allowed on the average capital and the balance of profit is divided equally. 4. Salaries of P60,000 and P48,000 are allowed to Scott and Tucker, respectively, and the balance of the profit is divided in the ratio of capital balances at the end of the period. 5. 6. Scott is…
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Net income for Costmore Sales for the year ended December 31, 2021, was P52,000. The partners, Johnson and Lindstrom, have the following capital balances: Capital Balance Johnson Lindstrom Original capital contribution 100,000 100,000 As of Dec 31, 2021 122,000 128,000 Average in 2021 110,000 115,000 a. If there was no agreement as to the distribution of profits or losses, how much of the net income will be allocated to Johnson? (1) 26000 To Lindstrom? (2) 26000 b. If partnership profits are distributed according to ending capital balance, how much of the net income will be allocated to Johnson? (3) 25376 To Lindstrom? (4) 26624 C. If partnership profits are distributed according to an arbitrary ratio of 65:35 to Johnson and Lindstrom respectively, how much of the net income will be allocated to Johnson? (5) 33800 . To Lindstrom? (6) 18200 d. Assume that instead of earning a net income of P52,000, the partnership incurred losses of P30,000. The partnership agreement calls for…
Use the following information for the next two questions: A, B, and C formed a joint operation. The joint operators shall make initial contributions P10 each. Profit and loss shall be divided equally. The following data relate to the joint operation's transactions: A B 8 Cr. Joint operation (before closing) Expenses paid from JO cash Value of inventory taken 10 Cr. 12 Cr. 2 3 6 4 21. How much were the sales of the joint operation? c. 40 a. 70 b. 60 d. 90 22. How much was A's share in the settlement? a. 25 receipt b. 20 тесeipt с. 25 раyment d. 20 payment
answer number 4-6
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Requirements: HOW MUCH IS THE REVALUATION SURPLUS ON THE YEAR OF REVALUATION? HOW MUCH IS THE GAIN OR LOSS IF THE BLDG IS SOLD FOR P8MILLION ONE YEAR AFTER REVALUATION? HOW MUCH IS THE BLANCE OF REVALUATION SURPLUS AFTER THE SALE?

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