On December 31, 2017, the Statement of Financial Position of CAR Partnership shows the following data with profits or loss sharing ratio of 1:3:6 1 Cash P 5,000,000 Carla P 5,000,000 Non cash assets 15,000,000 Ara 3,000,000 Ren 2,000,000 Total liabilities P 10,000,000 On January 1, 2018, Ellen is admitted to the new partnership to be named CARE by purchasing 20% capital interest of Carla in the amount of P 1,200,000. Which of the following statements is correct? Ellen will have capital credit of P 200,000 after the dissolution The old partnership will recognize gain of P 200,000 resulting from Ellen's admission The new partnership will have a total capital of P 10,200,000 a. b. C. d. Carla will have P 4,000,000 capital balance after the admission of Ellen

On December 31, 2017, the Statement of Financial Position of CAR Partnership shows the following data with profits or loss sharing ratio of 1:3:6 1 Cash P 5,000,000 Carla P 5,000,000 Non cash assets 15,000,000 Ara 3,000,000 Ren 2,000,000 Total liabilities P 10,000,000 On January 1, 2018, Ellen is admitted to the new partnership to be named CARE by purchasing 20% capital interest of Carla in the amount of P 1,200,000. Which of the following statements is correct? Ellen will have capital credit of P 200,000 after the dissolution The old partnership will recognize gain of P 200,000 resulting from Ellen's admission The new partnership will have a total capital of P 10,200,000 a. b. C. d. Carla will have P 4,000,000 capital balance after the admission of Ellen

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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Problem 15. On December 31, 2020, the Statement of Financial Position of ABC Partnershipwith profit or loss ratio of 5:3:2 is presented below: CashP1,600,000Total LiabilitiesP2,000,000 Non Cash Assets1,400,000A, capital100,000 B, capital500,000 C, Capital400,000 On January 1, 2021, the partners decided to liquidate the partnership ininstallment. All partners are legally declared to be personally insolvent. As of January 31, 2021, the following transactions occurred: - Noncash Assets with book value of P1,000,000 were sold at a gain ofP100,000.00 - Liquidation expenses for the month of January amounting to P50,000 werepaid. - It is estimated that liquidation expenses amounting to P150,000 will be incurred For the month of February, 2021. - 20% of the liabilities to third person were settled. - Available cash were distributed to partners As of February 28, 2021, the following transactions occurred: - Remaining noncash assets were sold at a loss of P100,000 - The remaining liabilities to…
Problem 15. On December 31, 2020, the Statement of Financial Position of ABC Partnershipwith profit or loss ratio of 5:3:2 is presented below: CashP1,600,000Total LiabilitiesP2,000,000 Non Cash Assets1,400,000A, capital100,000 B, capital500,000 C, Capital400,000 On January 1, 2021, the partners decided to liquidate the partnership ininstallment. All partners are legally declared to be personally insolvent. As of January 31, 2021, the following transactions occurred: - Noncash Assets with book value of P1,000,000 were sold at a gain ofP100,000.00 - Liquidation expenses for the month of January amounting to P50,000 werepaid. - It is estimated that liquidation expenses amounting to P150,000 will be incurred For the month of February, 2021. - 20% of the liabilities to third person were settled. - Available cash were distributed to partners As of February 28, 2021, the following transactions occurred: - Remaining noncash assets were sold at a loss of P100,000 - The remaining liabilities to…
Problem Solving: On January 1,2018, John and Frank decided to form a partnership. At the end of the year, the partnership made a net income of P120,000. The capital accounts of the partnership show the following transactions: John, Capital Frank, Capital Dr. Cr. Dr. Cr. Jan. 1 P40,000 P25,000 a Apr. 1 P5,000 Jun. 1 10,000 Aug. 1 10,000 Sep. 1 P3,000 ta Oct. 1 5,000 1,000 Dec. 1 4,000 5,000 55. Assuming th at the partnership's net income is divided on the basis of the average capital ratio, the share of John in the profits is? 50. Assuming that the partnership's net income is divided on the basis of the average capital ratio, the share of Frank in the profits is? 57. Assuming that an interest of20% per annum is given on average capital and the balance of the profits is divided equally, the share of John in the profits shall be: 58. Assuming that an interest of 20% per annum is given on average capital and the balance of the profits is divided equally, the share of Frank in the profits…
The second cash payment to any partner/s under the program of priorities shall be made thus?
On December 31, 2020, the accounting records of the Friends Partnership included the following information: Raflyn, drawing (debit balance) P 120,000 Jane, drawing (debit balance) Pablo, loan Raflyn, capital Jane, capital Pablo, capital 45,000 150,000 615,000 502,500 540,000 Total assets amounted to P2,392,500, including P262,500 cash, and liabilities totaled P750,000. The partnership was liquidated on December 31, 2020, and Jane received P416,250 cash pursuant to the liquidation. Raflyn, Jane, and Pablo share net income and losses in a 5:3:2 ratio, respectively. Compute for the total loss on realization.
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Question 1: Jo, Lee and Bee are partners who share profits and losses in the ratio of 35:25:40 to Jo, Lee and Bee respectively. The statement of Financial Position of the partnership on December 31, 2017 is as follows:ASSETSCash P8,000Noncash assets 110,000LIABILITIES AND CAPITALLiabilities P18,000Loan from Lee 2,000Jo, Capital 32,700Lee, Capital 23,500Bee, Capital 41,800On January 1, 2018, the partners decided to liquidate. For the month of January, some assets were sold for a loss of P2,000. Liabilities of P15,000 were paid. Payment to Partners Jo, Lee and Bee from the initial sale of assets were P150, P2,250 and P4,600 respectively. Cash withheld for possible liquidation expenses and unrecognized liabilities amounted to P1,250.What was the book/carrying value of the noncash assets sold in January?A. 28,250B. 26,250C. 20,250D. 18,250