Partner's Salary of RO 6000 paid to partner Ahmed for the year. The adjustment Journal entry for the above transaction will be: 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 Debit : Ahmed's Capital account RO 6000 Credit: Ahmed's Salary account RO 6000

Partner's Salary of RO 6000 paid to partner Ahmed for the year. The adjustment Journal entry for the above transaction will be: 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 Debit : Ahmed's Capital account RO 6000 Credit: Ahmed's Salary account RO 6000

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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Requirement: Prepare statement of income, with a schedule showing distribution of profits
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W 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…
these entries will be recorded 1) record the entry for formation of partnership june 1 2020 2) record the withdrawl by partner november 20 3) record the closing of profit to capital may 31 4) record the admissin of william for 20% interest june 01 these are not subparts i have mentioned these only for ur help
Partnership A, B and C is a law firm. You have been engaged as accountant to prepare financial statements for the year ended Dec. 31, 2019 Partnerships profits are alllocated based fist on salaries,then on interest on opening capital balances then on fixed ratio. Salary allocation amount are A $100000 B $100000 C $160000 Opening capital balances A $70000 B $60000 C $70000 Interest rate is: 5% Fixed ratio is A 3 B 2 C 5 required Prepare year end adjusting entries Allocate partnership profit or loss to each partner Prepare adjusting entry and complete trial balnce Prepare income statement and statement of partners capital for the year ended Dec. 31, 2019 and a balance sheet for Dec.31
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Mrs. Shine was registered in Jamaica as a sole trader in 2015. To grow her practice Mrs. Shine decided to enter into a partnership agreement with Mr. Rain, thus the status of the business was changed in 2021. In 2022, the partnership income statement for Shine & Rain was as follows: Income Statement for the year ended 31 December 2022$ $Revenue 11,600,000ExpensesSalaries & Wages 7,600,000Employer NIS Contribution 1,400,000 Rent and Rates 2.400,000Interest 500,000Maintenance 120,000Depreciation 550,000Loss on Disposal of Vehicle 80,000Telephone 235,000Electricity 255,000General Expenses 700,000Donations 85,000Provision for Bad Debts 80,000Fines and Penalties 115,000Drawings 105,000 14,225,000Net Loss 2,625,000 Notes to the Income Statement1. $55,000 of the drawings relate to Mrs. Shine and $50,000 to Mr. Rain2. Gross Salary for Mrs. Shine was $250,000 per month, and $200,000 for Mr. Rain. Both partners worked in the business during the year. 3. The annual allowance was…
The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, Is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torves, Capital Total Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances / loss percent) Decrease highest LAP to next highest: Debit $ 6,800 30,000 22,000 99,700 Decrease LAPS to next highest: $ 158,500 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 30 percent; and Torves, 20 percent. 3. The partners are considering an offer of $108,000 for the firm's accounts receivable, Inventory, and plant and equipment as of June 30. The $108,000 will be paid to creditors and the partners in Installments, the number and amounts of which are to be negotiated. Required: Prepare a cash distribution plan as of June 30,…
How much is the share of Lorna share in the net income? * P89,235.00 P90,382.50 P90,735.00 P91,350.00 answer not given
Mrs. Shine was registered in Jamaica as a sole trader in 2015. To grow her practice Mrs. Shine decided to enter into a partnership agreement with Mr. Rain, thus the status of the business was changed in 2021. In 2022, the partnership income statement for Shine & Rain was as follows: Income Statement for the year ended 31 December 2022 Revenue 11,600,000 Expenses Salaries & Wages 7,600,000 Employer NIS Contribution 1,400,000 Rent and Rate 2,400,000 Interest 500,000 Maintenance 120,000 Depreciation 550,000 Loss on Disposal of Vehicle 80,000 Telephone 235,000 Electricity 255,000 General Expenses 700,000 Donations 85,000 Provision for Bad Debts 80,000 Fines and Penalties…
Showing your workings, answer the following question. “Carnita and Cornwall are in partnership. The following is their trial balance as at 31 October 2020.” £ £ Capital Accounts: Carnita 400,000 Capital Accounts: Cornwall 500,000 Current Accounts: Carnita (at 1 November 2019) 164,000 Current Accounts: Cornwall (at 1 November 2019) 41,200 Drawings Accounts: Carnita 200,000 Drawings Accounts: Cornwall 160,000 Premises at cost 1,600,000 Vehicles at cost 520,000 Accumulated depreciation on vehicles at 31 October 2020 500,000 Debtors 464,200 Creditors 539,400 Stock at 31 October 2020 268,800 Bank 67,200 Bank loan at 5% 800,000 Net profit for the year 396,000 Accrued expenses 22,000 3,321,400 3,321,400 “You are given additional information as follows: i) Interest is charged on drawings, which has been calculated as: Carnita…