Q.1 Khalid and Khamis shared profits in the ratio of 2:3. Their Balance sheet on 31 December 2020 was as follows: Balance Sheet of Khalid and Khamis as on 31st December, 2020 Liabilities Amount(RO) Assets Amount(RO) Bills Payable 40,000 Khamis Loan 32,000 Cash 16,000 Debtors 80,000 (-) Provision for Doubtful Debts(3,600) 76,400 Profit and Loss 50,000 Stock 109,600 Capital Khalid Computer Equipment 40,000 280,000 240,000 160,000 Khamis 522,000 522,000 Khalid and Khamis decided to dissolve the firm on the above date. 1. Debtors Realized for RO 80,000; Stock RO 119,000; Equipment RO 285,000. 2. Computer was taken over by Khalid RO 33,000 3. Bills Payable were settled at RO 38,000 4. Cost of Realization expenses RO 2,400 5. There was a Vehicle in the Firm which was purchased from the Partnership Firm Money was not shown in the books of the firm and sold for RO 10,000. 6. Outstanding Electricity Bill of RO 5,000 Write the Necessary Journal Entries and Prepare the Realization Account, Partners Capital Account and Cash Account

Q.1 Khalid and Khamis shared profits in the ratio of 2:3. Their Balance sheet on 31 December 2020 was as follows: Balance Sheet of Khalid and Khamis as on 31st December, 2020 Liabilities Amount(RO) Assets Amount(RO) Bills Payable 40,000 Khamis Loan 32,000 Cash 16,000 Debtors 80,000 (-) Provision for Doubtful Debts(3,600) 76,400 Profit and Loss 50,000 Stock 109,600 Capital Khalid Computer Equipment 40,000 280,000 240,000 160,000 Khamis 522,000 522,000 Khalid and Khamis decided to dissolve the firm on the above date. 1. Debtors Realized for RO 80,000; Stock RO 119,000; Equipment RO 285,000. 2. Computer was taken over by Khalid RO 33,000 3. Bills Payable were settled at RO 38,000 4. Cost of Realization expenses RO 2,400 5. There was a Vehicle in the Firm which was purchased from the Partnership Firm Money was not shown in the books of the firm and sold for RO 10,000. 6. Outstanding Electricity Bill of RO 5,000 Write the Necessary Journal Entries and Prepare the Realization Account, Partners Capital Account and Cash Account

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

The following data pertain Ali,Saeed partnership for the first year of operations: Revenues OR360,000 Cost of goods sold OR150,000 Salaries expenses OR25,000 Interest expenses OR3,000 OR8,000 (for Insurance policy two years) The net income for the first year will be: Select one: a. OR178,000 b. OR174,000 C. OR210,000 d. OR182,000
Question 1 Maxine and Paula are partners who share profits and losses in the ratio 3:1. Their trial balance as at 2018 December 31 was as follows: A. B. i. 11. iii. iv. V. Sales Office salaries Office expenses Mortgage interest Purchases vi. Stock at 2018 January 01 Bank Batik Additional information: Creditors Debtors Fixtures Provision for depreciation on fixtures Building Mortgage 10% Capital - Maxine - Paula Current account - Maxine - Paula Drawings - Maxine - Paula Motor vehicle Commission received $ 25 000 12 630 8.000 245 500 70 000 24 000 22 000 100 000 7 500 3 500 8 500 10 500 50 000 587 130 Stock at 2018 December 31 is $120 000. Interest on capital is to be paid at 5%. Interest on drawings is to be charged at 5%. $ 295 500 42 180 22 350 6 600 80 000 60 000 60 000 20 500 587 130 Commission received is prepaid by $2 500. Provide for depreciation of fixtures 10% using the reducing balance meth d and motor vehicle at 10% using the straight-line method. Paula is to be paid a salary…
5
A, B, C, and D are partners, sharing earnings in the ratio of 3/21, 4/21, 6/21 and 8/21,respectively. The balances of their capital accounts on December 31, 20x1 are as follows: A --------- P1,000 B --------- 25,000 C ---------- 25,000 D ---------- 9,000 Total ------ 60,000 The partners decide to liquidate, and they accordingly convert the non-cash assets into P23,200 cash. After paying the liabilities amounting to P3,000, they have P22,000 to divide. Assume that a debit balance of any partner's capital is uncollectible. The share of B in the cash distribution to the partners was: (round-off answer) Please answer in good accounting form.
The information given below was extracted from the accounting records of Britar Traders, a partnership business with Brian and Taryn as partners. REQUIRED Use the information provided to prepare the Statement of Changes in Equity for the year ended 29 February 2020. INFORMATION Extract from the ledger of Britar Traders as at 29 February 2020 Debit Credit R R Capital: Brian Capital: Taryn Current alc: Brian (01 March 2019) 900 000 600 000 50 000 Current alc: Taryn (01 March 2019) Drawings: Brian Drawings: Taryn 30 000 350 000 250 000 The following must be taken into account: 1. On 29 February 2020 the Statement of Comprehensive Incomec reflected, amongst others, the following: Sales R1 200 000 Sales returns R50 000 Net profit R700 000 2. The partners earn interest at 12% p.a. on their capital balances. Note: Brian increased his capital balance by R100 000 on 01 September 2019 whilst Taryn decreased her capital balance by R100 000 on the same date. 3. The partners were entitled to the…
Question 1 Prepare the Statement of Changes in Equity for the year ended 28 February 2021. INFORMATIONThe information given below was extracted from the accounting records of Preston Traders, a partnership business withPresley and Tony as partners. The following must be taken into account:(a) The Statement of Comprehensive Income reflected a net profit of R900 000 on 28 February 2021.(b) The partners are entitled to interest at 12% p.a. on their capital balances.Note: Presley decreased his capital by R200 000 on 01 June 2020 whilst Tony increased his capital by R200 000 on 01 September 2020. These capital changes have been recorded. (d) Tony is entitled to a bonus equal to 5% of the net profit before any of the above appropriations have been taken into account.(e) The remaining profit/loss must be shared between Presley and Tony in the ratio 3:2 respectively.
Ratio Analyses for Victor and Maria Review the financial statements of Victor and Maria Hernandez and the financial ratios provided below. Balance Sheet for a Couple with Two Children-Victor and Maria Hernandez, January 1, 2018 Dollars Percent ASSETS Monetary Assets Cash on hand 1,200 0.3 Savings account 4,200 1.1 Victor's checking account 2,700 0.7 Maria's checking account 3,300 0.8 Tax refund due 700 0.2 Rent receivable 650 0.2 Total Monetary Assets $ 12,750 3.3% Tangible Assets Home 192,000 49.0 Personal property 9,000 2.3 Automobiles 9,500 2.4 Total Tangible Assets $ 210,500 53.7% Investment Assets Fidelity mutual funds 4,000 1.0 Scudder mutual fund 4,500 1.1 Ford Motor Company stock 2,500 0.6 New York 2038 bonds 4,100 1.0 Life insurance cash value 5,400 1.4 IRA accounts 34,400 8.8 Real estate investment 114,000 29.1…
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: S
5
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.
A partner had a debit balance on his current account of $1600 on 1 January 2009. On 31 December 2009 the following amounts were entered in the partner’s current account: interest on capital $500 share of profit $4000 What was the balance on the partner’s current account on 1 January 2010? A credit $1900 B credit $2900 C debit $5100 D debit $6100
Since 1s* January, 2011 A,B and C are equal partners. Their Balance Sheet as on 31-12-2014 is as follows: Liabilities Assets 40,000 Cash in hand Cash at Bank 60,000 Sundry Debtors Stock in Trade Plant & Machinery Land & Building Sundry Creditors Accumulated Balance in 15,000 25,000 40,500 24,500 Profit & Loss A/c Capital Accounts : 40,000 40,000 20,000 |1,00,000 |2,00,000 A 35,000 60,000 |2,00,000 (1) Accumulated balance in Profit and Loss Account as given in the Balance Sheet consists of the following: Profit of 2012 3 36,000, Loss of 2013 3 18,000, and Profit of 2014 3 42,000. Analysis of the books of accounts disclosed the following errors : (a) A machinery costing $ 12,000 purchased in 2013 was debited to Repairs Account. 10% depreciation on reducing balance method is provided on plant and machinery. (b) $1,080 being the fixed deposit interest due to the firm used by A for his personal (11) expenses in 2014. (c) Goods costing $ 12,000 gent on sale or return basis have been recorded…