m and N R equal partner as dear partnership agreement interest on drawing is to be charged @ 10% PER ANNUM dear drawing during 2017 where 40000 and 20000 respectively calculat interest on drawing based on the assumption that the amount will withdraw through the out?

m and N R equal partner as dear partnership agreement interest on drawing is to be charged @ 10% PER ANNUM dear drawing during 2017 where 40000 and 20000 respectively calculat interest on drawing based on the assumption that the amount will withdraw through the out?

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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The partnership agreement of x and y provides that interest at 5% per annual is to be charged on partners drawings . During year ended 31 December 2009 drawings by x were: 1 February 2009 $2400, 1 June 2009 $4800, August 2009 $960 . What is the total amount of interest on drawings chargeable to x's current account for the year?
Terms of the partnership agreement: 1.1 The partners are entitled to a salary of R18 000 each per month. 1.2 Zozi and Sethu share profits in the ratio of 1:1 respectively. 2. Year-end adjustments: 2.1 An outstanding debt of R2 200 is irrecoverable and must be written off. The allowance for credit losses must be increased to R6 500. 2.2 An amount of R4 500 owed by a debtor was written off as irrecoverable during the year ended 29 February 20.1. The debtor has settled the amount previously written off in full on 25 February 20.2. This transaction is still to be recorded in the books of the business. 2.3 Depreciation for the year must still be provided as follows: Office equipment: 20% according to diminishing balance method. Vehicles: 15% according to straight-line method and have a R15 000 residual value. 2.4 Inventories on hand on 28 February 20.1: Merchandise R45 100 2.5 Only 65% of salaries were paid to partners during…
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TOPIC: INSTALLMENT LIQUIDATIONA.The assets and equities of the NSW Partnership at the end of its fiscal year, October 31, 2020, are as follows: Profit and loss agreement is 30:50:20. CashP 150,000 Accounts receivable -net200,000 Inventory400,000 Plant Assets - net700,000 Loan to South50,000 Liabilities P 500,000 West, Loan 100,000 North, Capital 450,000 South, Capital 300,000 West, Capital 150,000 The partners decide to liquidate the partnership. They estimate that the non-cash assets other than the loan to South can be realized into P 1,000,000 over the two-month period ending December 31, 2020. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Required: 1. Assuming that P 650,000 is available for the first distribution, show how the available cash would be distributed.2. Assuming that a total amount of P 75,000 is available for distribution to partners after liabilities to outside creditors have…
Current Attempt in Progress The A and B partnership agreement stipulates that profits and losses will be shared equally after salary allowances of $80900 for A and $40100 for B. At the beginning of the year, A's capital account had a balance of $79300, while B's capital account had a balance of $71000. Profit for the year was $96000. The balance of B's capital account at the end of the year after closing is $40100. $121000. $68400. Ⓒ$98600.
Homework Activity 2 AB and C are in partnership sharing profits and losses in the ratio of 3:2:1. On 1* Jan 2019, their В 20,000 capital balances are: A 30,000 C 10,000 The terms of partnership provides that a. All partners are eligible for interest on capital @6% b. All partners are liable to pay interest on drawings @ 4% c. All Partners are eligible for salary @ RO 200 per month The net profit for the year ended 31s* Dec 2019 before making the above terms was 18,000. The drawings of the partners were: A 3,000 B 2,000 C 1,000 You are requested to prepare I. Profit and Loss Appropriations Account II. Capital accounts of three partners under fluctuating capital method
7. The partnership agreement of Hi and Rap provides that interest at 14% per year is to be credited to each partner on the basis of weighted average capital balances. A summaryof Rap capital account for the year ended December 31, 2015, is as follows:Balance, January 1 P210,000Additional investment, July 1 60,000Withdrawal, August 1 (22,500)Balance, December 31 P247,500What amount of interest should be credited to Rap’s capital account for 2015?
On December 31, 2020, the Statement of Financial Position of DEL Partnership shows the following date withprofit or loss sharing of 1:3:6:Cash P5, 000,000 Total Liabilities P10, 000,000Noncash Asset 15, 000,000 Diane 5, 000,000Ellen 3, 000,000Liz 2, 000,000On January 1, 2021, Ana will be admitted to the new partnership named ADEL Partnership by investing P4,000,000 for 30% capital interest in the new partnership which has total agreed capitalization of P20, 000,000.What is the new capital balance of Liz upon admission of Ana in ADEL Partnership?a. P4,400,000b. P8,400,000c. P5,600,000d. P3,200,00
A, B and C are in partnership sharing profits and losses in the ratio of 5:3:2. On 1st Jan 2017, their capital balances are: RO A 75000 B 45000 C 30000 The terms of partnership provide that: All partners are eligible for interest on capital @5% All partners are liable to pay interest on drawings @ 6% Partner A is eligible for salary @ RO 150 per month The net profit for the year ended 31st December, 2017 before making the above terms was RO 46400. The drawings of the partners were: RO A 6000 B 4000 C 2000 You are required to prepare: - Profit and Loss…
On December 31, 2020, the statement of financial position of UFC Partnership shows the following data with profit or loss sharing ratio of 2:3:5:Cash P15,000,000Other non-cash asset 40,000,000 Liabilities to others P20,000,000U, Capital 15,000,000F, Capital 12,500,000C, Capital 7,500,000On January 1, 2021, the partners decided to wind up the partnership affairs. During the winding up, liquidation expenses amounted to P2,000,000 were paid. Non-cash assets with book value of P30,000,000 were sold during January. 40% of total liabilities were also paid during January. P3,000,000 cash was withheld during January for future liquidation expenses. On January 31, 2021, partner U received P10,000,000.What is the net proceeds from the sale of non-cash assets during January 2021?
QUESTION 1 Mweemba and Phiri are in partnership sharing profits and losses in the ratio 7:3 respectively. The following information has been taken from the partnership records for the year ended 31 May 2020. Partners' capital account Mweemba k200,000 Phiri k140,000 Partners' current accounts, balances as at 1 June 2019: Mweemba K15, 000 Cr Phiri K13, 000 Cr During the year ended 31 May 2020 the partners made the following withdrawals from the partnership bank account. Mweemba Phiri k10, 000 on 31 August 2019 K10, 000 on 30 November 2019 K10, 000 on 28 February 2020 K10, 000 on 31 May 2020 k7, 000 on 31 August 2019 K7,000 on 30 November 2019 K7,000 on 28 February 2020 K7,000 on 31 May 2020 Interest is to be charged on withdrawals at the rate of 12% per annum. Interest is allowed on capital accounts and credit balances on current accounts at the rate of 12% per annum. Phiri is to be allowed a salary of k15, 000 per annum. The Net profit of the partnership for the year ended 31 May 2020…
Terms of the partnership agreement: 1.1 The partners are entitled to a salary of R18 000 each per month. 1.2 Zozi and Sethu share profits in the ratio of 1:1 respectively. 2. Year-end adjustments: 2.1 An outstanding debt of R2 200 is irrecoverable and must be written off. The allowance for credit losses must be increased to R6 500. 2.2 An amount of R4 500 owed by a debtor was written off as irrecoverable during the year ended 29 February 20.1. The debtor has settled the amount previously written off in full on 25 February 20.2. This transaction is still to be recorded in the books of the business. 2.3 Depreciation for the year must still be provided as follows: Office equipment: 20% according to diminishing balance method. Vehicles: 15% according to straight-line method and have a R15 000 residual value. 2.4 Inventories on hand on 28 February 20.1: Merchandise R45 100 2.5 Only 65% of salaries were paid to partners during…