Assuming that an interest of 20% per annum is given on average capital and10. On January 1, 2020, Lim and Pan decided to form a partnership. At the endof the year, the partnership made a net income of P630,000. The capitalaccounts of the partnership show the following transactions.Lim, CapitalPan, CapitalDebitCreditDebitCreditJanuary 1April 1210,000131,25026,250June 152,500August 1September 152,50015,75026,25021,000October 15,250December 126,250the balance of the profits is allocated equally, the allocation of profitsshould be:a. Lim, P315,000; Pan, P311,850b. Lim, P321,300; Pan, P308,700c. Lim, P352,800; Pan, P277,200d. Lim, P361,200; Pan, P268,800

Here in this question, we are required to find out how much net income is attributable to each of…

Answered: On January 1, 2020, Lim and Pan decided…

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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X and Y were partners in a firm with a profit sharing ratio of 7:5. During the year ended 31.12.2012 Y makes the drawings as under: Date Amount ($) 01.02.2012 14,000 01.05.2012 10,000 30.06.2012 5,000 31.10.2012 12,000 31.12.2012 4,000 Partnership deed provides that partners are to be charged interest on drawings @ 10% per annum. Calculate the interest chargeable to Y by using Simple Interest Method and Product Method.
A and B formed a Partnership on January 1, 2020. A contributed capital of P50,000, while B contributed capital of P30,000. The Partnership agreement provides for the following: o Capital accounts are to be credited annually with interest at 5% of the beginning capital. o Partner B is to be paid salary of P2,000 a month. o Partner B is to receive a bonus of 10% based on the net income. The Partnership's income statement for the year ended is as follows: Revenues P101,000 30,000 71,000 Expenses (including salary, interest, and bonus) Net income Determine the amount of bonus.
Use the following information for numbers 13 to 18. The capital accounts of Sonia and Olga partnership on January 1, 2018 were: Partners Capitals P&L Ratio Sonia 112,000 75% Olga 48,000 25% On October 1, 2018, Thess was admitted for a 40% interest in the partnership when she purchased 40% of each existing partner's capital for P80,000, paid directly to Sonia and Olga. The partnership's net income for the year is P66,000 and 2/3 of it was earned in the last quarter of the year. What are the balances of all partners after Thess's admission to the partnership? 13. Sonia. 14. Olga. 15. Thess. 16. How much will Sonia receive from the above transaction? 17. Assume that Thess is admitted by investing P80,000 into the partnership for a 40% interest, how much is the ending capital balance of Olga after the admission? 18. Assume that Thess is admitted by investing P80,000 into the partnership for a 40% interest, how much is the bonus (given)/received to/from Thess after the admission?
On March 1, 20Y8, Eric Keene and Renee Wallace form a partnership. Keene agrees to invest $23,400 in cash and merchandise inventory valued at $62,600. Wallace invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring her total capital to $60,000. Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow in the image below. The partnership agreement includes the following provisions regarding the division of net income: interest on original investments at 10%, salary allowances of $19,000 (Keene) and $24,000 (Wallace), and the remainder equally. The journal entries for both Keene and Wallace are also attached below. Prepare a balance sheet as of March 1, 20Y8, the date of formation of the partnership of Keene and Wallace.
On March 1, 20Y8, Eric Keene and Renee Wallace form a partnership. Keene agrees to invest $23,400 in cash and merchandise inventory valued at $62,600. Wallace invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring her total capital to $60,000. Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow in the image below. The partnership agreement includes the following provisions regarding the division of net income: interest on original investments at 10%, salary allowances of $19,000 (Keene) and $24,000 (Wallace), and the remainder equally. Instructions Journalize the entries to record the investments of Keene and Wallace in the partnership accounts.
Beck and Nilo are equal partners in B & N Associates, a general partnership. B & N has the following liabilities at the end of the current year: Accounts payable Unsecured bank loan Note payable secured by collateral What amount of the debt is included in Beck's at-risk amount in the partnership? A. $2,000 B. $7,000 C. $13,000 D. $15,000 $4,000 10,000 16,000

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