In 2017, Ryan, Chen and Win established a firm partnership and they agreed to share theprofits in a 2:1:1 ratio. In mid-2018, with operations running profitably, they decided todissolve the firm's partnership. Based on the following facts, prepare a summary of thepartner's capital balance showing how much, if any, is available to settle in final settlement.ABValue of net assets paid in topartnership firm...$50,000$22,500$20,000Company partnership net income for 1976$30,000 divided into Ratio 2:1:1..$15,000$7,500$7,5001986 private take...$15,000$10,000$10,000Net assets at the time of dissolution are assessedFor $65,000 and distributed to$16,250$16,250Allies according to a ratio of 2:1:1..... $32,500

The partner's capital account summary shows the balances due to the partners.

Answered: In 2017, Ryan, Chen and Win established…

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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Allan and Bobby formed a partnership called the AB Partnership by investing cash of P300,000 and P400,000 respectively. They share profit and loss ratio 2:3. Carlo of Singapore was admitted to the firm with an investment of P500,000 representing a 30% interest. Allan decided to withdraw on June 3, 2022 for a cash settlement of P650,000. The partners decided that assets need not be revalued. How much was total partners' equity after the retirement of Allan?
How much is the capital of Adee upon partnership formation?
The A & B Partnership was established since 2005. On January 1, 2015, the partners agree to admit partner (C). Capital account balances and profit and loss sharing ratios at January 1, 2015, before the admission of partner (C), are as follows: Partner (A) (30%) $63,000 Partner (B) (70%) $97,000 Partner (C) invested $120,000 cash to the partners for 60% of capital interest and the partners agree about assets revaluation. The capital balance of partner B after admission is a. $82,000. a. $82,000. b. $78,000. b. $78,000. c. $91,000. c. $91,000. d. $97,000.
The partnership of Maya, Nova, and Oscar was dissolved. By August 1, 2014, all assets hadbeen converted into cash and all partnership liabilities were paid. The partnership balancesheet on August 1, 2014 (with partner residual profit and loss sharing percentages) was asfollows: Cash $100,000 Maya, capital (30%) $ 8,000 Nova, capital (20%) (120,000) Oscar, capital (50%) 212,000 Total assets $100,000 Total equity $ 100,000 The value of partners' personal assets and liabilities on August 1, 2014 were as follows: Maya Nova Oscar Personal assets $148,000 $240,000 $112,000 Personal liabilities 144,000 160,000 120,000 Required:Prepare the final statement of partnership liquidation.
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The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, Is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torves, Capital Total Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances / loss percent) Decrease highest LAP to next highest: Debit $ 6,800 30,000 22,000 99,700 Decrease LAPS to next highest: $ 158,500 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 30 percent; and Torves, 20 percent. 3. The partners are considering an offer of $108,000 for the firm's accounts receivable, Inventory, and plant and equipment as of June 30. The $108,000 will be paid to creditors and the partners in Installments, the number and amounts of which are to be negotiated. Required: Prepare a cash distribution plan as of June 30,…
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Kim, Nicolas, and Troy are general partners in KNT Partnership sharing profits and losses in the ratio of 2:4:4, respectively. The partnership suffered financial distress and the partners decided to liquidate the partnership in December 2019. Accounts, after revaluation, adjustment, and correction, had the following ledger balances: Cash P 90,000 Accounts Receivable 205,000 Allowance for Doubtful Accounts 5,000 Merchandise Inventory 180,000 Equipment Accumulated Depreciation Equipment Accounts Payable Kim, Loan [Loan Payable - Kim] Troy, Loan [Loan Payable Troy] Kim, Capital Nicolas, Capital Troy, Capital 600,000 102,000 182,000 18,000 90,000 100,000 213,000 365,000 For the independent cases that follow in the course of winding up, prepare a statement of liquidation and necessary journal entries to record the liquidation process: A. The entire net receivable was collected, all inventories were sold at cost, and equipment was sold at its carrying value. B. Only 90% of net receivable was…
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