May and Jun are partners with profit and loss ratio of 75:25 and capital balances of P480,000 and P320,000, respectively. Julie is to be admitted into the partnership for 20% interest in the capital, profits and losses by investing cash. Assuming that the equipment of the partnership is undervalued by P60,000 and inventories are overvalued by P10,000. How much is the capital balance of Jun after admission of Julie?

May and Jun are partners with profit and loss ratio of 75:25 and capital balances of P480,000 and P320,000, respectively. Julie is to be admitted into the partnership for 20% interest in the capital, profits and losses by investing cash. Assuming that the equipment of the partnership is undervalued by P60,000 and inventories are overvalued by P10,000. How much is the capital balance of Jun after admission of Julie?

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

Watts and Lyon are forming a partnership. Watts invests $40,500 and Lyon invests $49,500. The partners agree that Watts will work one-fourth of the total time devoted to the partnership and Lyon will work three-fourths. They have discussed the following alternative plans for sharing income and loss: (a) in the ratio of their initial capital investments; (b) in proportion to the time devoted to the business; (c) a salary allowance of $15,000 per year to Lyon and the remaining balance in accordance with the ratio of their initial capital investments; or (d) a salary allowance of $15,000 per year to Lyon, 11% interest on their initial capital investments, and the remaining balance shared equally. The partners expect the business to perform as follows: Year 1, $13,000 net loss; Year 2, $32,500 net income; and Year 3, $54,167 net income. Required: Complete the tables, one for each of the first three years, by showing how to allocate partnership income or loss to the partners under each of…
Ariel, Bambi and Cindy put up a partnership with a P120,000 capital. They agreed that Ariel will contribute 13, Bambi 38%, and Cindy for the balance. 50 a. How much is the capital contribution of each partner? b. What is the fractional part of Cindy's capital contribution? (answer should be in fraction.
Bruce, Parker and May formed a partnership. Their capital balances showed the following: Bruce, Capital P252,000; Parker, Capital- P126,000; May, Capital- P42,000. Their profit and loss ratio are 6:3:1. The partners decide to sell 20 percent of their interest to Violet for a total payment of P120,000. Violet will pay the money directly to the other partners. How much was the bonus debited or credited in paetner Bruce's capital accounts?
Nancy and Perry are partners, and each has a capital balance of P100,000. To gain admission to the partnership, Mitch pays P52,000 directly to Nancy for one-half of her equity. After the admission of Mitch, the total partners' equity in the records of the partnership will be
Daggett, Lamppin, and Pendergast are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $140,000, $80,000, and $55,000, respectively. (a) Your answer is correct. Assume Sanford joins the partnership by investing $135,000 for a 25% interest with bonuses to the existing partners. Prepare the journal entry to record his investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Cash Sanford, Capital Daggett, Capital Lamppin, Capital Pendergast, Capital + + + Debit 135000 Credit 102500 16250 9750 6500
Jocelyn and Juvelyn decide to form a partnership. Jocelyn invests P25,000 cash and accounts receivable of P30,000 less allowance for doubtful accounts of P2,000. Juvelyn contributes P20,000 cash and equipment having a P6,000 book value. It is agreed that the allowance account should be P3,000 and the fair market value of the equipment is P10,000. How much should the capital of Jocelyn be credited?
Katy and Perry who share profits and losses in the ratio of 3:7 are partners with capital balances of P40,000 and P60,000, respectively. Hermes is to be admitted into the partnership for 20% interest in the capital of the new partnership. If assets are revalued and the capital balances of Katy and Perry after recording the admission of Hermes are P52,000 and P88,000, respectively, how much will be the amount invested by Hermes?
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?
Please help me
Peter, James, and John are partners with capital investments of P450,000, P350,000 and P500,000 respectively. Upon the formation of the business, the three agreed to share profits and losses in the ratio of 4:3:3. Andrew was admitted into the partnership by investing cash of P488,000 for a 30% interest in the partnership. How much is the bonus given by James to Andrew? Note: Round of answer to the nearest peso.
Can you make a solution for these? The right answer for Rod and Sol is 420,000. Thanks!
May and Jun are partners with profit and loss ratio of 55:45 and capital balances of ₱530,000 and ₱370,000, respectively. On June 9, 2022, Julie was admitted into the partnership by investment for a 40% of the total partnership capitalization. However, before the admission of Julie, the partners agreed that the asset “Equipment” should be revalued from ₱800,000 to ₱500,000. How much cash is to be invested by Julie?