Partner's Salary of RO 6000 paid to partner Ahmed for the year. The adjustment Journal entry for the above transaction will be:
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- Partner's Salary of RO 6000 paid to partner Ahmed for the year. The adjustment Journal entry for the above transaction will be: O a. Debit : Ahmed's Salary account RO 6000 Credit: Cash account RO 6000 O b. Debit : Ahmed's Salary account RO 6000 Credit: Ahmed's Capital account RO 6000 O. Debit : Ahmed's Capital account RO 6000 Credit: Ahmed's Salary account RO 6000 Od. Debit : Cash account RO 6000 Credit: Ahmed's Salary account RO 6000The partnership contract of Ali & Yousif LLP provided for salaries of $45,000 to Ali and $35,000 to Yousif, with any remaining income or loss divided equally. During 2005, pre-salaries income of Ali & Yousif LLP was $100,000. During 2020, Ali's share of net income is: O a. 55000 O b. 37000 O c. 35000 O d. 45000The terms of a partnership agreement provide that one of the partners is to receive a salary allowance of P30,000, plus a bonus of 20 percent of income after deduction of the bonus and the salary allowance. If income is P150,000, the bonus should be: *
- 1. Annual salary allowance to Gonzalez of $25,000. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided to Gonzalez and Van Home, 2:1. Gonzalez and Van Horne had $126,000 and $189,000, respectively, in their January 1 capital balances. Net income for the year was $115,000. Required: How much net income should be distributed to Gonzalez and Van Horne? Gonzalez: Van Horne: SW owes Y, the managing partner of XYZ Partnership, P50,000 due on Oct. 1, 2021. W also owes XYZ partnership P100,000 due on Oct 31, 2021. If W pays the managing partner P50,000. How will the payment be applied? Explain.Ruby, Sapphire, and Emerald have been partners throughout 2021. Their average balances and their balances at the end of the year before closing the nominal accounts are as follows: Average Balances Ruby - P48,750 Sapphire - 3,650 Emerald 2,125 Balances 12/31/2021 Ruby - 35,000 Sapphire - 5,900 Emerald - 850(debit balance) The income for 2021 is P51,750 before charging partners' salary allowances and before payment of Interest on average balances at the agreed rate of 4% per annum. Annual salary allocations are P6,250 to Ruby, P4,375 to Sapphire, and P3,125 to Emerald. The balance of the profits is to be allocated at the rate of 60% to Ruby, 10% to Sapphire, and 30% to Emerald. It is intended to distribute cash to the partners so that, after credits and allocations have been made as indicated in the preceding paragraph, the balances in the partners' accounts will be proportionate to their residual profit- sharing ratios. None of the partners is to invest additional cash, but they wish…
- Lewis Wardell and Lewis Lomas own Lewis’ Antiques. Their partnership agreement provides for annual salary allowances of $200,000 for Wardell and $180,000 for Lomas, and interest of 10 percent on each partner’s invested capital at the beginning of the year. The remainder of the net income or loss is to be distributed 50 percent to Wardell and 50 percent to Lomas. The partners withdraw their salary allowances monthly. On January 1, 20X1, the capital account balances were Wardell, $600,000, and Lomas, $560,000. On December 15, 20X1, Lomas made a permanent withdrawal of $55,000. The net income for 20X1 was $640,000. Required: Prepare the general journal entry on December 15, 20X1, to record the permanent withdrawal by Lomas. Prepare the general journal entries on December 31, 20X1, to: Record the salary allowances for the year. Record the interest allowances for the year. Record the division of the balance of net income. Close the drawing accounts into the…Innovative Tech Inc. (ITI) uses the percentage of credit sales method to estimate bad debts eachmonth and then uses the aging method at year-end. During November, ITI sold services on accountfor $100,000 and estimated that ½ of one percent of those sales would be uncollectible. At itsDecember 31 year-end, total Accounts Receivable is $89,000, aged as follows: (1) 1–30 days old,$75,000; (2) 31–90 days old, $10,000; and (3) more than 90 days old, $4,000. Experience hasshown that for each age group, the average rate of uncollectibility is (1) 10 percent, (2) 20 percent,and (3) 40 percent, respectively. Before the end-of-year adjusting entry is made, the Allowance forDoubtful Accounts has a $1,600 credit balance at December 31.Required:1. Prepare the November adjusting entry for bad debts.2. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts.3. Prepare the December 31 adjusting entry.4. Show how the various accounts related to accounts…Aishah, Balan and Chong decided to enter into a partnership agreement as from 1 July 2019 with the following provisions: i . Aishah to contribute $20,000 cash, inventory the fair value of which was $42,500, plant and machinery $78,600, accounts receivable totalling $12,700. ii. Balan to contribute $37 500 cash and act as manager for the business at an annual salary of $32,000 to be allocated to him at the end of each year. iii. Chong to contribute $16,500 cash, land $120,000, premises $240,000, funiture and fittings $40,500, motor vehicles $31,500. A mortgage of $180.000 secured over the premises was outstanding and the partnership agreed to assume the mortgage. iv . Profits or losses of the firm are to be divided between or borne by Aishah, Balan and Chong in the proportion of 2:1:3 respectively. V. Interest to be allowed at 8% p.a. on the capital contribution by the partners. Interest at 10% p.a. to be charged on partners' drawings. During the year ended 30 June 2020, the…
- Terms of the partnership agreement: 1.1 The partners are entitled to a salary of R18 000 each per month. 1.2 Zozi and Sethu share profits in the ratio of 1:1 respectively. 2. Year-end adjustments: 2.1 An outstanding debt of R2 200 is irrecoverable and must be written off. The allowance for credit losses must be increased to R6 500. 2.2 An amount of R4 500 owed by a debtor was written off as irrecoverable during the year ended 29 February 20.1. The debtor has settled the amount previously written off in full on 25 February 20.2. This transaction is still to be recorded in the books of the business. 2.3 Depreciation for the year must still be provided as follows: Office equipment: 20% according to diminishing balance method. Vehicles: 15% according to straight-line method and have a R15 000 residual value. 2.4 Inventories on hand on 28 February 20.1: Merchandise R45 100 2.5 Only 65% of salaries were paid to partners during…in the year ended the partner withdrawal closed in Select one: a. parter capital b. income statement c. expenses d. partner loan