Problem 8:- A, B and Crun a business sharing profits and losses in proportion of 2:2:1. On 1s January, 2015 their respective capitals were $ 96,000, $ 90,000 and $ 84,000. On 30th June, 2015 the following was the position : $ Creditors 30,000 Furniture 9,000 Book Debts 1,80,000 Stock 90,000 Cash in hand and at Bank 36,000 The drawings of the partners respectively were $ 12,000, $ 9,000 and $ 6,000 during the half-year. Each partner is entitled to an interest at the rate of 5% p.a. on capital. Interest on drawings was calculated as $ 600 for A, $ 450 in case of B and $ 300 in case of C. You are required to prepare : (1) (11) A Statement of Affairs as on 30th June, 2015. Calculate the profits for the half-year ending on 30th June, 2015 and allocate the same amongst the partners. Also calculate capital of each partner as on 30th June, 2015.

Problem 8:- A, B and Crun a business sharing profits and losses in proportion of 2:2:1. On 1s January, 2015 their respective capitals were $ 96,000, $ 90,000 and $ 84,000. On 30th June, 2015 the following was the position : $ Creditors 30,000 Furniture 9,000 Book Debts 1,80,000 Stock 90,000 Cash in hand and at Bank 36,000 The drawings of the partners respectively were $ 12,000, $ 9,000 and $ 6,000 during the half-year. Each partner is entitled to an interest at the rate of 5% p.a. on capital. Interest on drawings was calculated as $ 600 for A, $ 450 in case of B and $ 300 in case of C. You are required to prepare : (1) (11) A Statement of Affairs as on 30th June, 2015. Calculate the profits for the half-year ending on 30th June, 2015 and allocate the same amongst the partners. Also calculate capital of each partner as on 30th June, 2015.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Item No. 14 is based on the following information: Capri and Corn had capital balances of P 20,000 and P 40,000, respectively on Jänuary 1, 200B. On July 1, Capri made an additional investment of P 12,000 and on August 1, Corn withdrew P 12,000 of his capital. On December 31, the partners' drawing accounts showed debit balances of P 5,000 and P 3,000 for Capri and Corn, respectively. The profit during the year was
8 A, B and C formed a partnership on January 1, 2007 with investments of $200,000, $300,000 and $400,000 respectively. The profit and loss sharing ratio is 20% for A, 30% for B and 50% for C. For division of income, they have agreed: 1. interest of 10% of beginning capital balance each year 2. annual compensation of $10,000 for B. The partnership earns $500,000 in its first year of operation. Each partner draws $1000 a month. What is B’s share of the net income What is C’s capital balance at the end of the first year
ILLUSTRATION 37:-X, Y and Z were partners sharing profits and losses in the ratio 2 : 2 : 1. Their respective capital balances on 31.12.2014 were $ 5,00,000, $ 6,00,000 and $ 4,00,000 respectively. After closing the accounts for the year 2014, it was discovered that salaries of $ 20,000 p.a. to X and $ 30,000 to Z were ommited before distributing the profit. Profits for the year 2014 were $ 5,00,000 and the same have already been credited to their capital accounts. Instead of changing the audited Balance sheet, it was decided to pass a single adjusting entry in the beginning of the year 2015, so that accounts of previous year can be rectified.
A7 please help....
A,B and C were partners sharing profits and losses 2:3:1. The position of the firm as on 1-4-2014 and 31-3-2015 was : 01/04/2014 31/03/2015 01/04/2014 31/03/2015 A's Capital B's Capital C's Capital General Reserve Capital Reserve Bank Overdraft Fixed Assets Debtors Stock Loans and Advances 20,000 18,000 30,000 28,000 40,000 36,000 40,000 37,000 65,000 22,000 10,000 9,000 20,000 30,000 72,000 32,000 12,000 12,000 10,000 1,22,000 5,000 1,52,000 On 1st April, 2014 the partners decided to change their profit and loss sharing ratio to 2:4:1. 1,22,000 1,52,000 Goodwill was valued at $ 42,000. No entries were, however, passed to give effect to this change. Pass Journal entries in the books of the firm as on 31st March, 2015 and prepare Capital Accounts of the Partners.
19 ALPHA AND BETA Alpha and Beta are in partnership. They share profits equally after Alpha has been allowed a salary of $4,000 capital accounts. The trial balance of the partnership at 31 December 20X8 before adjusting for any of the items below, is as follows: pa. No interest is charged on drawings or allowed on current accounts or Dr Cr So00 So00 Capital Alpha Beta 30 25 Current Alpha Beta 3 Drawings Alpha Beta 4 5. Sales 200 Inventory 1 Jan 20X8 30 Purchases 103 Operating expenses 64 Loan Beta (10%) Gamma (10%) 10 20 Land and buildings 60 Plant and machinery cost 70 depreciation to 31 December 20X8 40 Receivables 40 Payables 33 Bank 11 - 376 376 (i) Closing inventory on hand at 31 December was S24,000. On 31 December Alpha and Beta agree to take their manager, Gamma, into (ii) partnership. Gamma's loan account balance is to be transferred to a capital account as at 31 December. It is agreed that in future Alpha, Beta and Gamma will all share profits equally. Alpha will be allowed a…
1741 @ O * Umniah I. أنت كل الوسائط ۲۰۲۰/۱۲/۲۷، 1:۲۹ م Jadara Company compiled the following financial information as of December 31, 2014: Revenues 140,000 Equipment 80,000 Accounts receivable 14,000 Note Payable 8,000 Expenses 125,000 Account Payable 10,000 Share capital 65,000 Dividends 10,000 Jadara's Total liabilities on December 31, 2014, are Jigu
a. Journalize the following transactions: i. January 10. Received cash from three incorporators for 75,000 shares of common stock, $375,000.00. R1-3. ii. iii. iv. V. vi. vii. viii. ix. January 10. Paid cash to Aaron Lovell as a reimbursement for organization costs, $10,000. C1. Value of Preferred Stock January 10. Received a subscription from Amory Lin for 10,000 shares of common stock, $50,000.00. M1. Total Amount of Dividends January 15. Received cash for the face value of a 5-year, 10%, $1,000.00 par value bond issue, $50,000.00. R11. January 25. Received a subscription from Peter Lavine for 8,000 shares of common stock, $40,000.00. M2. February 14. Received cash from Amory Lin in partial payment of stock subscription, $25,000. R4. March 15. Paid cash to Peter Lavine for 500 shares of common stock at $10.00 per share. C112. March 20. Received cash from Amory Lin in final payment of stock subscription, $25,000.00. R5. b. At the end of the year, Al-Can Products, Inc. had issued…
Domestic