King, Queen and Prince are partners sharing profit and loss in the ratio of 1:1:2respectively. Their capital balances are P500, 000, P300, 000 and P200, 000respectively. Liabilities amounted to P200, 000. There is also a loan payable to Prince,P20, 000.If the cash balance amounted to P300,000. how much is the non-cash assets of thepartnership?а. Р950,000b. P1,250.000c. P1,200,000d. P900,000If the non-cash assets were sold at a gain of P150,000. How much is the cashproceeds?a. P1,100.000b. Р800,000c. P1,400,000d. P1,050,000

Partnership means where two or more person comes together to do some common business activity and…

Answered: King, Queen and Prince are partners…

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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1
What is the correct answer?
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Orange and Lemon share profits and losses equally. They decided to liquidate their partnership when their net assets amounted to P 260,000. Capital balances were P 170,000 andP 90,000, respectively. If the non-cash assets were sold for an amount equal to book value, what amount of cash should Orange and Lemon respectively received? E.
Anwar and Bravo wish to form the A&B partnership. Anwar contributes land with a book value of $ 175,000 (current value of $200,000) and a building with a book value of $200,000 (current value of $300,000). Bravo will contribute cash. If the partners plan to share profits and losses equally after the formation of the partnership and assuming they have agreed to equal capital contributions, how much cash will Bravo have to contribute to form the partnership? Pass Journal entry to be recorded in A&B Firm
If the net income of the partnership is P 250,000 and the profit/loss ratio is 1:3:2 for A, B and C, respectively, how much is the share of C in the net income? A. P 50,000 B. P 41,667 C. P 125,000 D. P 83,333
Anna and Ben formed a partnership with investments of P1,000,000 and P500,000, respectively. Net income is P210,000. The partners agreed on the following: 10% interest on original investments . Anna's salary allowance of 120,000 and Ben's salary allowance of P144,000 Balance 1:2 between Anna and Ben, respectively ● How much is Anna's share in the net income?
Alpha and Beta are partners who share income in the ratio of 1:2 and have capital balances of $41,700 and $79,200, respectively, at the time they decide to terminate the partnership. Noncash assets with a book value of $120,900 are sold for $75,000. What amount of loss on realization should be allocated to Alpha? a.$75,000 b.$41,700 c.$25,000 d.$15,300
Tomas and Saturn are partners who share income in the ratio of 3:1 (3/4 to Tomas and 1/4 to Saturn). Their capital balances are $80,000 and $120,000, respectively. The partnership generated net income of $30,000. What is Saturn's capital balance after closing the revenue and expense accounts to the capital accounts?
Estephanie, Flordeliza, and Geralyn formed a partnership. Geralyn made a cash investment amounting to P 80,000. Given this information, how much is the expected total capital of the partnership if they desire equal capital balances?
Can you make a solution for these? The right answer for Rod and Sol is 420,000. Thanks!
Jacob and Joseph are partners with capital balances of P1,600,000 and P2,400,000 respectively. They share profits and losses in a ratio of 2 : 3. Jacob and Joseph agreed to accept Joshua into the partnership by investing P1,000,000 cash for a one-fifth interest in the partnership. Joshua's capital balance will be 1. P1,000,000 P 900,000 'P 800,000 P 700,000 Not given 2. Jacob and Joseph agreed to accept Joshua into the partnership by investing P1,000,000 cash for a one-fifth interest in the partnership. Jacob's capital balance will be P2,400,000 P2,000,000 P1,600,000 P1,000,000 Not given 3. Jacob and Joseph agreed to accept Joshua into the partnership by investing P1,000,000 cash for a one-fourth interest in the partnership. Joshua's capital balance will be P2,250,000 P2,000,000 P1,500,000 P1,250,000 Not given

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