Mr. Suner, Mr. Behman and Mr. Meuthosam are partners, who share profit in the ratio of 2:2:1. Following is thebalance sheet as on March 31, 2020.Balance Sheet of Mr. Suneer, Mr. Rehman and Mr. Mouthosam as on March 31, 2020LiabilitiesAmount(OMR)AssetsAmount(OMR)Mr. Suneer's capital5,000Cash and Bank 2,500Mr. Rehman's Capital2,000Stock2,500Mr. Mouthosam's capital1,000Furniture1,000Reserve fund2,5002,000DebtorsCreditors2,000Plant and4,500machinery12,50012,500They decided to dissolve the business. The following amounts were realized. There was an unrecorded asset ofRs.350, which was taken over by Mr. Rehman at Rs.150. How much amount of unrecorded assets are recordedin the realization account?OMA 200None of the listed choicesOMR I50OMA150Creditors paid 2% less. How much amount of creditors are recorded in the credit side of realizationaccount?

Journal entry as follows Mr.Rehman a/c Dr. 150 To…

Mr. Suner, Mr. Rehman and M. Meuthosam re partners, whn share profa in the ratie of 221. Following is the balance sheet as on March 31, 2020. Balance Sheet of Mr. Suner, Mr. Rehman and Mr. Mouthosam as on March 31, 2020 kiabilities Amount Assets Amount (OMR) (OMR) Mr. Suneer's capital 5,000 Cash and Bank 2,500 Mr. Rehman's Capital 2,000 Stock 2,500 Mr. Mouthosam's capital 1,000 Furniture 1,000 Reserve fund 2,500 Debtors 2,000 Creditors 2,000 A500 Plant and machinery 12,500 12,500 They decided to dissolve the business. The following amounts were realized. There was an unrecorded asset of Rs.350, which was taken over by Mr. Rehman at Rs.150. How much amount of unrecorded assets are recorded in the realization account? OMA 200 None ofthe listed choices OMR 0 OMAI50 Creditors paid 2% less. How much amount of creditors are recorded in the credit side of realization account?

Mr. Suner, Mr. Rehman and M. Meuthosam re partners, whn share profa in the ratie of 221. Following is the balance sheet as on March 31, 2020. Balance Sheet of Mr. Suner, Mr. Rehman and Mr. Mouthosam as on March 31, 2020 kiabilities Amount Assets Amount (OMR) (OMR) Mr. Suneer's capital 5,000 Cash and Bank 2,500 Mr. Rehman's Capital 2,000 Stock 2,500 Mr. Mouthosam's capital 1,000 Furniture 1,000 Reserve fund 2,500 Debtors 2,000 Creditors 2,000 A500 Plant and machinery 12,500 12,500 They decided to dissolve the business. The following amounts were realized. There was an unrecorded asset of Rs.350, which was taken over by Mr. Rehman at Rs.150. How much amount of unrecorded assets are recorded in the realization account? OMA 200 None ofthe listed choices OMR 0 OMAI50 Creditors paid 2% less. How much amount of creditors are recorded in the credit side of realization account?

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

acc
Required Information [The following information applies to the questions displayed below.] The Taurin Partnership (a calendar-year-end entity) has the following assets as of December 31 of the current year: Tax Basis $ 45,000 15,000 FMV $ 45,008 30,e00 Cash Accounts receivable Inventory 81,800 120,000 $ 195,e00 Totals $ 141,800 On December 31, Taurin distributes $15,000 of cash, $10,000 (FMV) of accounts recelvable, and $40,000 (FMV) of Inventory to Emma (a one-third partner) In termination of her partnership Interest. Emma's basis in her partnership Interest Immediately prior to the distribution is $40,000. c1. If Emma's basis before the distribution was $55,000 rather than $40,000, what Is Emma's recognized galn or loss? c2 What is her basis in the distributed assets? Complete this question by entering your answers in the tabs below. Req C1 Req C2 What is her basis in the distributed assets? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar…
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 Torven, Capital Total Debit $ 7,200 38,000 27,000 98,400 Profit and loss percentages Preliquidation capital balances $170,600 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 25 percent; and Torves, 25 percent. 3. The partners are considering an offer of $112,000 for the firm's accounts receivable, inventory, and plant and equipment as of June 30. The $112,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated. Decrease LAPs to next highest Credit Required: Prepare a cash distribution plan as of June 30, 20X1, showing how much cash each partner will receive if the partners accept the offer to sell…
EXERCISE 6. Journal Entries - Capital share different from capital contribution. On June 1, 2022, Al and Ace formed a partnership. Al contributed cash of P600,000, inventories of P100,000, and furniture and fixtures of P120,000. On the other hand, Ace contributed cash of P520,000, building of P330,000, and land of P200,000. The building was mortgaged for a loan amounting to P500,000 of which 70% had already been paid. The remaining balance would be assumed by the partnership. The partners agreed to share profits and losses equally. Prepare and upload journal entries related to partnership formation, assuming: 1. Each partner would be credited for the full amount of net assets invested 2. Each partner initially should have equal interest in partnership capital. To ensure this, it was agreed that partner with a lower capital balance had to invest additional cash.
In Crane Co, capital balances are frey $37.900 and Pedigo $45.400. The partners share income equally Vernon is admitted to the firm with a 42% interest by an investment of cash of $48,000. Journalize the admission of Vernon. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit
Keri & Nick Consulting’s partners’ equity accounts reflected the following balances on August 31, 2020: Keri Lee, Capital $ 85,000 Nick Kalpakian, Capital 209,000 Lee and Kalpakian share profit/losses in a 2:3 ratio, respectively. On September 1, 2020, Liam Court is admitted to the partnership with a cash investment of $126,000. Required: Prepare the journal entry to record the admission of Liam under each of the following unrelated assumptions, where he is given: a. A 30% interest in equity -Record the admission of new partner b. A 20% interest in equity -Record the admission of new partner c. A 50% interest in equity -Record the admission of new partner
Partners Ala, Gerald, and Mike share profits and losses 5:3:2, respectively, and their balance sheet on October 31, 2005 follows: Cash P 240,000 Accounts payable 600,000 Other assets 2,160,000 Ala, capital 444,000 Gerald, capital 780,000 Mike, capital 576,000 2,400,000 2,400,000 The assets & liabilities are recorded at their current fair value. Gerry is to be admitted as a new partner w/ a 1/5 interest in capital & earnings. Ala was credited a bonus of P15,000. How much should Gerry contribute? a. 487,500 b. 456,000 c. 450,000 d. 480,000
4. On January 1, 2020, Anne, and Betty decided to form a partnership. The firm is to take over the assets and assume liabilities and capital are to be based on net assets transferred after the following adjustments: a. Anne and Betty's inventory is to be valued at P 31,000 and P 22,000, respectively. b. Accounts receivable of P 2,000 in Anne's books and P 1,000 in Betty's books are uncollectible. C. Accrued salaries of P 4,000 to Anne and P 5,000 to Betty are still to be recognized in the books. d. Unused office supplies of Anne amounted to P 5,000 while that of Betty amounted to P 1,500. Unrecorded patent of P 7,000 and prepaid rent of P 4,500 are to be recognized in the books of Anne and Betty, respectively. Anne is to invest or withdraw cash necessary to have a 40% interest in the firm. e. f. Balance sheets for Anne and Betty on January 1, 2020, before adjustments are given below: Betty Anne 50,000 20,000 24,000 5,000 24,000 (3,000) P 120,000 31,000 26,000 32,000 P Cash Accounts…
4 Assume the following information just prior to the admission of new partner I: Assets Cash Accounts receivable Partner CH- $ 5,000 43,000 G H 7. New partner I contributes land with a fair value of $100,000. Relative ownership interests after this transaction are: Liabilities Accounts payable G, Capital H, Capital $48,000 Required: Prepare journal entries to record the following unrelated scenarios: 5. New partner I purchases partners G's partnership interest for $40,000. 6. New partner I receives a cash bonus of $2,000 and a one-tenth ownership share, allocated equally from the partnership interests of G and H. Ownership interest 20% 5% 75% 100% Partners' Capital $30,000 10,000 $ 8,000 40,000 $48,000
Q.No.5 Mr. A and Mr. B start a business on 01st June ,2021, with capital of 2,570,000 and 800,000. According to agreement Mr. A is entitled for a salary of 250,000 whereas another partner is entitled for Rs. 46,000. Partners borrowed some amount of loan from a financial institution of Rs. 300,000 at 12% interest rate. The interest on capital 7.5% p.a is allowed to partner B. During their first fiscal year of partnership, they earned a net profit of Rs. 1,650,000. Required: Profit and Loss appropriation account to allocate the profit with 3:2 to partners A and B respectively. Provide necessary journal entries. Moreover, also prepare a capital account for the partnership.
The following information relates to partner for the year ended 29 February 2020: Current account credit balance on 29 February 2020 20 000 Profit share 50 000 Salaries 180 000 Interest on capital 24 000 Drawings 220 000 Interest on drawings 2 000 What is the balance in the Current account of the partner on 01 March 2019? A. R12 000 DR O B. R116 000 DR OC. R52 000 CR O D. R12 000 CR
The LM partnership will take over the assets and assume the liabilities of the proprietor as of January 1, 20x4 Determine the total assets after the formation of the partnership.