Annual salaries of P210,000 and P140,000 are provided to LDS andLRV, respectively, 12% interest is allowed on average capital, andany remainder is divided 2:3 to LDS and LRV, respectively.(d) The partnership contract does not have a provision for the division ofInterest of 10% is allowed on average capital and the resulting profitGeneral partners LDS and LRV formed the L&L Partnership on2018, with initial capital contributions of P420,000 and P700,000respectively.partners during 2018 are summarized as follows:4.January 2Additional investments and withdrawals made by theLDSLRVAdditional investments:May 1July 1P105,000P105,000Withdrawals:November 1105,000262,500The partnership's operations for the year 2018 resulted to a profit ofP735,000.Required:Determine the share of each partner in profit under each of the followleindependent assumptions:(a)profit or loss.(b)Profit is divided according to the partners' average capital.(c)or loss is divided equally.

"Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

November 1 105,000 262,500 The partnership's operations for the year 2018 resulted to a profit P735,000. Required: Determine the share of each partner in profit under each of the followl independent assumptions: The partnership contract does not have a provision for the division profit or los. (a)

November 1 105,000 262,500 The partnership's operations for the year 2018 resulted to a profit P735,000. Required: Determine the share of each partner in profit under each of the followl independent assumptions: The partnership contract does not have a provision for the division profit or los. (a)

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

n the year ended 31/12/2018 total income of Palestine co,20,000 if A partner received 5,000 annual salary and reaming divided equally between the two partners A and B so Finally the reamig profit should be allocated to partners will be 15,000 Select one: True False
PROBLEM G: On December 31, 2019, the statement of financial position of BRY Partnership shows the following data with profit or loss sharing ratio of 2:3:5: Cash P1,500,000 Liabilities to outside creditors В, Сарital R, Capital Y, Capital P2,000,000 1,500,000 1,250,000 750,000 Non-cash asset 4,000,000 On January 1, 2020, the partners decided to wind up the partnership affairs. During January, non-cash assets with book value of P3,000,000 were sold for P2,000,000 and liquidation expenses amounting to P200,000 were paid. 40% of total liabilities were also paid during January. P300,000 cash was withheld during January for future liquidation expenses. 8. What is the amount received by partner R on January 31, 2020? A. 200,000 B. 380,000 C. 500,000 D. 890,000
Question 2 Brown, Blue, and Black are in partnership sharing profit and losses in the ratio 2:1:2. The balance sheet for the partnership as of April 15, 2019, was as follows: $ Non-current assets Land Buildings Equipment Current assets Inventory Accounts receivable Cash Total assets Capital account Brown Blue Black Non-current liabilities Mortgage on building Current liabilities Accounts payable Total liabilities 360,000 1,260,000 234,000 108,000 45,000 36,000 315,000 108,000 450,000 1,080,000 90,000 $ 1,854,000 Required: Prepare the following ledger accounts for the dissolution of the partnership: a) Realization account b) Bank account c) Partner's capital account 189,000 2,043,000 873,000 1,080,000 90,000 2,043,000 The partners agreed to dissolve the partnership on April 15, 2019 on the following conditions: Sold the inventory for $72,000, collected $48,000 on accounts receivable and wrote off the remaining accounts, sold equipment for $192,000 and building and land for $1,200,000,…
X and Y are partners sharing profits 6:4, respectively. Capital accounts as of October are 1, 2021 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? A.P 480,000 B.P 506,000 C.P 454,000 D. P325,000
Exercise 3-2 (Division of Profit; Interest on Average Capital) Danica and Jenson are partners. Their capital accounts during the fiscal year 2019 were as follows: Danica, Capital 120,000 1/1 Jenson, Capital 3/1 180,000 1/n 1,200,000 140,000 100,000 9/1 800,000 160,000 60,000 4/1 7/1 11/1 10/1 Profit of the partnership is P250,000 for the year. Determine the partners shared profit under the following assumptions: 1. Each partner is to be credited 12% interest on his average capital. 2. Any remaining profit or loss is to be divided equally.
Part II: Problems 1. On January 1, 2021, Kaye, Erika and April formed a partnership with original capital contribution ratio or 4:5:1 for total agreed capitalization of P5,000,000. The profit or loss ratio agreement provides that profits shall be distributed in the ratio of 3:2:5 while losses shall be distributed in the ratio of 6:1:3. During 2021, the partnership reported net income of P2,000,000 with Kaye and Erika withdrawing P500,000 and P300,000, respectively. During 2022, the partnership reported net loss of P1,000,000 with Erika and April withdrawing P200,000 and P400,000 respectively. What is the adjusted capital balances of each partner on December 31, 2022?
The Articles of Partnership of Ange and Bill and the following provisions were stipulated: Annual salary of P50,000 each Bonus to Ange of 20% of the net income after partner’s salaries and bonus, the bonus being treated as an expense. Balance to be divided equally. The partnership reported a net income of P375,000 after partners’ salaries but before bonus. How much is the share of Bill in the profit? Group of answer choices 284,375 206,250 268,750 190,625
3. Partnership Income Distribution: For partnerships G, If partner C’s total share of the partnership’s net income 300,000 and Partner C’s Interest on original Capital Balance is 80,000 and Partner C’s share of the remainder of the partnership’s net income is 120,000, how much is Partner C’s allowance? A. 120,000 B. 100,000 C. 80,000 D. 60,000 E. None of the above
Help me please
Problem-solving Admissionby Purchase of Interest or Investment of AssetsAngeles. Bondoc and Campos have equities in a partnership as follows: Angeles 300,000 Bondoc 750,000 Campos 700.000 and share of profits and losses in a ration of 5.3.2, respectively. The partners have agreed to admit Dantes to the partnership REQUIRED Prepare the journal entries to record the admission of Dantes to the partnership under each of the following assumptions.1. Dantes paid Angeles P450.000 for his full interest 2. Dantes invested P500,000 for a 25% interest, and bonus is recorded for Dantes 3 Dantes invested P600,000 for a 20% interest, and bonus is recorded for the old partners.
Karan Sub: accounting
Coburn (beginning capital, $60,000) and Webb (beginning capital $86,000) are partners. During 2022, the partnership earned net income of $74,000, and Coburn made drawings of $20,000 while Webb made drawings of $22,000.