Jason and Kidd are partners who share profits and losses in the ratio of 3:1, respectively. On August 1, 2017, their capital balances were: Jason - P 200,000 and Kidd -P 100,000. On this date, Scottie invests 80,000 in the firm and is given a capital credit of P 50,000 which is to be 1/8 of the capital of the new partnership. 1. What is the agreed capital of the new partnership? 2. What is the new capital balance of Jason after the admission of Scottie?

Jason and Kidd are partners who share profits and losses in the ratio of 3:1, respectively. On August 1, 2017, their capital balances were: Jason - P 200,000 and Kidd -P 100,000. On this date, Scottie invests 80,000 in the firm and is given a capital credit of P 50,000 which is to be 1/8 of the capital of the new partnership. 1. What is the agreed capital of the new partnership? 2. What is the new capital balance of Jason after the admission of Scottie?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

One, Two and Three are partners sharing profits and losses in the ratio of 2:3:5 respectively. The partnership is balance sheet at August 30, 2016 follows:One 40,000 Two 60,000 Three 100,000 A.Assuming that Ako is admitted to purchase interest and paid 40,000 for a 40% interest. 1.How much is the total capital after Ako's Admission? 2.What will be the new share of Three after Ako's Admission? 3.What us the Adjusted capital of Two after Ako's admission? B. Assuming that Ako is admitted by purchase of interest from Three and paid 60,000 for a 30% interest. 1. What will be the new share of Three after Ako's Admission? 2. What amount will be credited to Ako upon his admission? 3. What is the adjusted capital of Thee after Ako's admission C. Assuming that Ako is admitted by investing 40,000 for a 40% interest. No revaluation of assets is to be recognized. 1. How much is the total capital after Ako's Admission? 2. What is the adjusted capital of Three after Ako's admission? 3. What…
X and Y are partners sharing profits 6:4, respectively. Capital accounts as of October 1, 2021 are X-P 560,000; Y-P 480,000. They agree to admit Z as a new partner with an investment of P260,000 for a interest in the partnership and that the assets are fairly valued, what would be the capital of Y after the admission of Z?
The partnership of Dina and Zia has assets of P 2,000,000 and liabilities of P 600,000. The capital balances of the partners are P 800,000 and P 600,000 respectively. Their old profit and loss sharing ratio is 60:40. They are inviting Heeka to join the partnership. If Heeka invests P 500,000 and will be give a 20% interest in the new partnership, how much will the adjusted capital of Dina after admission of Heeka? P 800,000 P 1,140,000 P 872,000 P860,000 Using the same information in no.6, how much is the capital credit given to Heeka in the new partnership? P 380,000 P 500,000 P 350,000 Answer not given
Kelly, Kayla and Kathy are partners in Karisma Trading sharing profits or losses in the proportion of 3:1:2respectively. The partnership agreement states the following:1. Kelly and Kathy are entitled to a monthly salary of RM2,500 and RM2,000 respectively.2. Interest in the capital is at 5% per annum.3. Interest in drawings is at 7% per annum.The following balances were obtained from the partnership books for the financial year ended 31 December 2015. Please prepare the following: b) Appropriation Account for the year ended 31 December 2015.
May and Jun are partners with profit and loss ratio of 40:60 and capital balances of $600,000 and $400,000 respectively. On June 09, 2022, Julie was admitted into the partnership by investment for a 20% of the total partnership capitalization. What is Jun's new Profit and Loss Ratio after the admission of Julie? Note: Express your answer either in percentage or decimal. example: 50% or 0.50
Josh and Krish are partners sharing profits and losses in the ratio of 3:1. Their capitals at the end of the financial year 2015-2016 were Rs. 1,50,000 and Rs. 75,000. During the year 2015-2016, Josh’s drawings were Rs. 20,000 and the drawings of Krish were Rs. 5,000, which had been duly debited to partner’s capitalaccounts. Profit before charging interest on capital for the year was Rs. 16,000.The same had also been debited in their profit sharing ratio. Krish had brought additional capital of Rs. 16,000 on October 1, 2015. Calculate interest on capital @ 12% p.a. for the year 2015-2016.
After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $64,900 and $86,500, respectively. Lewan Gorman is to be admitted to the partnership, contributing $43,300 cash to the partnership, for which he is to receive an ownership equity of $50,500. All partners share equally in income. a. Journalize the entry to record the admission of Gorman, who is to receive a bonus of $7,200. If an amount box does not require an entry, leave it blank. Cash Grayson Jackson, Capital Harry Barge, Capital Lewan Gorman, Capital b. What are the capital balances of each partner after the admission of the new partner? Partner Balance Grayson Jackson $ Harry Barge $ Lewan Gorman $
May and Jun are partners with profit and loss ratio of 70:30 and capital balances of ₱751,000 and ₱352,000 respectively. On June 09, 2022, Julie was admitted into the partnership by investment for a 30% of the total partnership capitalization. What is May’s new Profit and Loss Ratio after the admission of Julie? Note: Express your answer either in percentage or decimal. example: 50% or 0.50
Celso, Lino and Noel are partners with capital balances of P180,000, P100,000 and P120,000 respectively. Joel is admitted into the partnership with a one-fourth interest upon payment of P160,000. If the old partners share profits and losses in the ration of 2/5,2/5 and 1/5, then the capital account of Celso after the admission of Joel will show a balance of: a.) P180,000 b.) P160,000 c.) P172,000 d.) P188,000 SHOW COMPLETE SOLUTION
After the tangible assets have been adjusted to current market prices, the capital accounts of Brad Paulson and Drew Webster have balances of $45,000 and $60,000, respectively. Austin Neel is to be admitted to the partnership, contributing $30,000 cash to the partnership, for which he is to receive an ownership equity of $35,000. All partners share equally in income.a. Journalize the entry to record the admission of Neel, who is to receive a bonus of $5,000.b. What are the capital balances of each partner after the admission of the new partner?c. Why are tangible assets adjusted to current market prices prior to admitting a new partner?