Problem 41: The following condensed balance sheet is presented for thepartnership of A and B, who share profits and losses in the ratio of 6:4respectively:CashNon-cash assetsB, loan135,0001,875,00090,0002,100,000Accounts payableА, сapitalВ, сapital360,0001,044,000696,0002,100,000All assets and liabilities are fairly valued, A and B decided to admit C as a newpartner with 20% interest. No bonus or revaluation is recorded. What amountshould C contributes in the firm?а. 330,000b. 348,000c. 420,000d. 435,000Problem 42: The following capital accounts pertain to A and B:P&L ratioCapital200,000240,000A40%в60%C is admitted by purchase of ½ interest of both A and B, for P240,000, theP240,000 is divided between A and B, respectively:а. 96,000; 144,000b. 108,000; 132,000с. 109,090; 130,910d. 120,000; 120,000

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Description: Problem 41: The following condensed balance sheet is presented for thepartnership of A and B, who share profits and losses in the ratio of 6:4respectively:CashNon-cash assetsB, loan135,0001,875,00090,0002,100,000Accounts payableА, сapitalВ, сapital3

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Problem 41: The following condensed balance partnership of A and B, who share profits and losses in the ratio of 6:4 respectively: the Cash Non-cash assets B, loan 135,000 1,875,000 90,000 2,100,000 Accounts payable A, capital В, саpital 360,000 1,044,000 696,000 2,100,000 All assets and liabilities are fairly valued, A and B decided to admit C as a neu

Problem 41: The following condensed balance partnership of A and B, who share profits and losses in the ratio of 6:4 respectively: the Cash Non-cash assets B, loan 135,000 1,875,000 90,000 2,100,000 Accounts payable A, capital В, саpital 360,000 1,044,000 696,000 2,100,000 All assets and liabilities are fairly valued, A and B decided to admit C as a neu

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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Exercise 2: Division of Income (I attached the question for Exercise 1 so please check it out. Thanks) Assume that in Exercise 1, the partnership of Bong and Lapira realized a net income of P17,400. How much must be the share of each partner therein under each of the following methods of dividing net income? Net income is divided based on the beginning capital ratio. Net income is divided based on the ending capital ratio. Net income is divided based on the average capital ratio. Interest of 12% is allowed on average capital with the remainder divided in the ratio of 6:4 between Bong and Lapira, respectively. Interest of 10% is allowed on average capital, salary allowance of P8,000 is given to Lapira, remainder to be divided in the ratio of 3:7 between Bong and Lapira.
k 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 $ 7,808 34,000 24,808 99,908 Decrease LAPs to next highest: $ 164,908 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 25 percent; and Torves, 25 percent. 3. The partners are considering an offer of $110,000 for the firm's accounts receivable, inventory, and plant and equipment as of June 30. The $110,000 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, 20X1,…
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Direction: Answer the following questions in problem 3: [6,7,8]
Ideu, the d. P3,200 b. Р3,920 C. P4,500 d. P17,800 42. liquidate. All assets of the partnership just prior to liquidation follows: were liquidated. The condemsed statement of financial position Assets Cash Other assets liabilities and capital P140, 000 10, 000 45, 000 105, 000 200, 000 P500,000 P100, 000 liabilities Matias, loan Matias, capital Pagayanon, capital Pescasiosa, capital Total 400, 000 Total P500, 000 Other assets were sold for P247, 500 realizing a loss of P152, 500. Parties agreed to fully terminate the partnership's business thus, necessitating distribution of cash to partners and in case of capital deficiency, contribution of additional cash. The three partners were all solvent and could answer any capital deficiency. Name the partner and give the corresponding additional cash he had to invest due to his net capital deficiency to finally settle to the liquidation of the partnership. Pagayanon, P44,000 b Pescasiosa, P30, 500 Matias, P16,000 Matias, P6,000 a C
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developed in part a(3). etd 189fc64d53a0a6a71 PROBLEM C.11 Dividing Partnership Profit and LossLOC-10 Rothchild Furnishings, Inc., has three partners-Axle, Brandt, and Conrad. At the beginning of the current year their capital balances were: Axle, $180,000; Brandt, $140,000; and Conrad, $80,000. The partnership agreement provides that partners shall receive salary allowances as follows: Axle, $10,000; Brandt, $50,000; and Conrad, $28,000. The partners shall also be allowed 12 percent interest annually on their capital balances. Residual profit or loss is to be divided: Axle, one-half; Brandt, one-third; and Conrad, one-sixth. Instructions Prepare separate schedules showing how income will be divided among the three partners in each of the following cases. The figure given in each case is the annual partnership net income or loss to be allocated among the partners. Round calculations to the nearest dollar. a. Income of $526,000. b. Income of $95,000. c. Loss of $32,000. PROBLEM C.12 Who…
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2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. Q3. How much additional investment did Chap make? a. 10,000 b. 14,000 c. 15,000 d. 20,000