Partners Lakers and Celtics are considering the admission of Knicks into the partnership.Lakers and Celtics share profit and loss in the ratio of 2:4, respectively. Capital balancesof Lakers and Celtics are P 240,000 and P 180,000 respectively.Prepare journal entries to record the admission of Knicks under each of the followingindependent assumptions:1. Knicks acquired one-third of the interest of Lakers paying P 80,000.2. Knicks acquired one-third of the interest of Celtics paying P 35,000.3.Knicks buys a 25% interest in the partnership from the old partners paying eachP63,000. Asset revaluation has to be considered prior to the admission of Knicks.

Partnership refers to the contractual agreement among the persons or individuals who came together…

Partners Lakers and Celtics are considering the admission of Knicks into the partners Lakers and Celtics share profit and loss in the ratio of 2:4, respectively. Capital balan of Lakers and Celtics are P 240,000 and P 180,000 respectively. Prepare journal entries to record the admission of Knicks under each of the follow independent assumptions: 1. Knicks acquired one-third of the interest of Lakers paying P 80,000. 2 Knicks acquired one-third of the interest of Celtics paying P 35,000. Knicks from the

Partners Lakers and Celtics are considering the admission of Knicks into the partners Lakers and Celtics share profit and loss in the ratio of 2:4, respectively. Capital balan of Lakers and Celtics are P 240,000 and P 180,000 respectively. Prepare journal entries to record the admission of Knicks under each of the follow independent assumptions: 1. Knicks acquired one-third of the interest of Lakers paying P 80,000. 2 Knicks acquired one-third of the interest of Celtics paying P 35,000. Knicks from the

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 2BD

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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
X and Y are partners sharing profits 6:4, respectively. Capital accounts as of October 1, 2021 are: X-P 560,000, YP 480,000. They agree to admit Z as a new partner with an investment of P260,000 for a ¼ interest in the partnership and that the assets are fairly valued, what would be the capital of Y after the admission of Z?
Cis admitted to A & B Partnership under the bonus method. C contributes cash of P20,000 and non-cash assets with a market value of P30,000 and book value of P15,000 in exchange for a 20% ownership interest in the new partnership. Prior to the admission of C, the capital of the existing partnership was P130,000 and an appraisal showed the partnership net assets were fairly stated. A & B shared profits and losses at a ratio of 80/20, respectively. How much is the bonus amount to be recorded for each partner?
CC admits DD as a partner in business. Accounts in the ledger for CC on November 30, 20x4, just before the admission of DD, show the following balances: Cash.... P 6,800 Accounts Receivable... 14,200 Merchandise Inventory... 20,000 Accounts Payable.. . 8,000 CC, Capital... 33,000 It is agreed that for the purposes of establishing CC's interest the following adjustments shall be made: 1. An allowance for doubtful accounts of 3% of account receivable is to be established. 2. The merchandise inventory is to be valued at P23,000. 3. Prepaid salary expenses of P600 and accrued rent expense of P800 are to be recognized. 1 DD ic to invest sufficient cash to obtain a 1/3 interest in the
Admission by Investment of Assets Partners Quinsay and Buenaventura have capital balances of P100,000 and P40,000 and share income in a ratio of 4:1, respectively. Rementina is to be admitted into the partnership with a 20% interest in the business. What is the journal entries and computations to record the admission of Rementina for each of the following independent situations: 1. Rementina invested P60,000. Total capital will be P200,000. 2. Rementina purchased the 20% interest by paying Quinsay P22,000 and Buenaventura P11,000. 3. Rementina invested P32,000. Total capital will be P172,000.
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2. Under partnership liquidation
On June 30, 2020, the balance sheet of Abella Marketing, a partnership, is summarized as follows:
Admission by Investment of Assets Partners Quinsay and Buenaventura have capital balances of P100,000 and P40;000 and share income in a ratio of 4:1, respectively. Rementina is to be admitted into the partnership with a 20% interest in the business. Required: Prepare the journal entries to record the admission of Rementina for each of the following independent situations: 1. Rementina invested P60,000. Total capital will be P200,000. Rementina purchased the 20% interest by paying Quinsay P22,000 and Buenaventura P11,000. 2. 3. Rementina invested P32,000. Total capital will be P172,000. -
Compute the partner's capital under bonus method.
The following are the capital account balances and the profit and loss sharing ratio of the partners of MTR Motors Company on December 31, 2019: M (25%) 60,000; T (50%) 80,000; and R (25%) 200,000.On January 1, 2020, L is admitted as a new partner under the following agreement:L is to share 1/3 in the profits and losses while the other partners will continue to share in the P/L in their original ratio.L is to pay T 24,000 for a ¼ interest to the latter’s equity in the partnership and is to invest 140,000 cash in the partnership.L’s capital account after the admission is to show 150,000 and the total capital of the new partnership is 520,000. Requirements:1. Compute for the respective partner’s capital account balances after the admission of L.2. Compute for the new P/L ratio of the partners in the new partnership.
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