Problem :-9 A and B were partners in a firm with a profit sharing ratio of 7:5. A had given a sum of $1,20,000 to the firm as loan on 1st July 2014, and B had given a sum of $ 60,000 to the firm on the same date. Distribute the profit/ losses amongst the partners in each of the following cases assuming that the firm closes the books on December 31st every year and deed is silent to the rate of interest on loan. Case (a) If the trading profit for the year 2014 is $ 6,300 Case (b)If the profits of the firm, before charging any interest amounted to $ 4,500.

Problem :-9 A and B were partners in a firm with a profit sharing ratio of 7:5. A had given a sum of $1,20,000 to the firm as loan on 1st July 2014, and B had given a sum of $ 60,000 to the firm on the same date. Distribute the profit/ losses amongst the partners in each of the following cases assuming that the firm closes the books on December 31st every year and deed is silent to the rate of interest on loan. Case (a) If the trading profit for the year 2014 is $ 6,300 Case (b)If the profits of the firm, before charging any interest amounted to $ 4,500.

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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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.
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Subject: acounting
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#52 On January 3, 2020, LT, AM, ZP formed a partnership, agreeing to divide profits 2:1:1, respectively. On July 31, 2020, with operations going unfavorably, the partners decided to dissolve the firm. For that seven-month period, LT had capital contribution of P50,000 and drawings of P15,000; AM had capital contribution of P22,500 and drawings of P10,000; and ZP had contribution of P20,000 and drawings of P10,000. The amount of loss from operations is 30,000. Assuming that there is P65,000 cash available for distribution to partners. Determine the amount to be received by AM and ZP.
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