Question # 03A and B are partners in a partnership firm. They share profits and losses in the ratio 1:1. Their balancesheet is given below:Balance SheetAccounts payableA's CapitalCash45,00045,000Other assets900,000450,000B's Capital450,000945,000945.000They decided to admit C as a new partner for 4 interests in the firm.Required:Give entries in general journal to record admission of C and prepare balance sheet in cach of thefollowing cases separately using Goodwill Method.C invests Rs. 300,000 cashC invests Rs. 270,000 cashC invests Rs. 378,000 cashCase - 1Case - 2Case - 3

Partnership: It is a form of business under it two or more persons made a formal agreement with the…

Question # 03 A and B are partners in a partnership firm. They share profits and losses in the ratio 1:1. Their balance sheet is given below: Cash Other assets Balance Sheet Accounts payable A's Capital 45,000 45,000 900,000 450,000 B's Capital 945,000 They decided to admit C as a new partner for ¼ interests in the fim. 450,000 945,000 Required: Give entries in general journal to record admission of C and prepare balance sheet in each of the following cases separately using Goodwill Method. Case -1 C invests Rs. 300,000 cash C invests Rs. 270,000 cash C invests Rs. 378,000 cash Case - 2 Case -3

Question # 03 A and B are partners in a partnership firm. They share profits and losses in the ratio 1:1. Their balance sheet is given below: Cash Other assets Balance Sheet Accounts payable A's Capital 45,000 45,000 900,000 450,000 B's Capital 945,000 They decided to admit C as a new partner for ¼ interests in the fim. 450,000 945,000 Required: Give entries in general journal to record admission of C and prepare balance sheet in each of the following cases separately using Goodwill Method. Case -1 C invests Rs. 300,000 cash C invests Rs. 270,000 cash C invests Rs. 378,000 cash Case - 2 Case -3

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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3. Hilda Homeowner enters into a signed written contract with Carpenter Cory to build a deck for $2,000 with Cory to provide all materials and labor at Cory’s expense with the work to be completed in 3 weeks. They agree that Cory will be paid the full $2,000 upon completion of the work. Cory starts the job but doesn’t finish it. After 5 weeks, the job is incomplete, Hilda is unable to contact Cory and she arranges with substitute contractor, Stan to finish building the deck. Stan, a reputable builder, tells Hilda that the work Cory did has to be torn out because Cory used the wrong materials. Stan and Hilda agree that the total price will be $2,400 for Stan to rip out what’s been done and then build the deck to the original specifications. a. What damages, if any, can Hilda recover from Cory based on these facts? Show your calculations. b. Assume that after getting Stan’s proposal of $2,400, Hilda, instead of using Stan for the job, hires her out-of-work brother to do the job…
Dividing partnership income Carmelo Fernandez and Bobby Morett formed a partnership, investing $187,500 and $62,500, respectively. Determine their participation in the year's net income of $290,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $38,000 and $45,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $38,000 and $45,000, respectively, and the remainder divided equally. Fernandez Morett a. b. C. d. e.
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Assuming the partnership will use a new set of books, prepare the necessary journal entries to record the investment of each partner. 1 4. Gary and Gardo are combining their separate business to form a partnership. Cash and non- cash assets are to be contributed for a total capital of P600,000. The non-cash assets to be contributed and the liabilities to be assumed are as follows: Gardo BV Gary BV P 40,000 60,000 120,000 30,000 FMV P 30,000 90,000 100,000 30,000 FMV Accounts receivable Merchandise inventory Equipment Accounts Payable P 40,000 80,000 20,000 P 80,000 120,000 20,000 Assuming the partners' capital accounts are to be equal after all the contribution of assets and the assumption of liabilities, determine the amount of cash to be contributed by Gary. Using the same information, determine the total assets of the partnership. Using the same information and assuming the excess capital credit over the fair value of the net assets transferred to the partnership is recognized as…
Chapter- Partnership 1. Explain what the problem is with being a general partner in a partnership. 2. In the last entry for a Statement of Liquidation cash is distributed to the partners. How is this done and why? 3. Henry wanted to purchase an interest in a partnership from Bertha. He paid $11,000 to her for the complete interest. The partnership capital account of Bertha showed only $4,000. Record the entry required.
TRUE OR FALSE
QUESTION 1 Kumaresan and Cheng are watch repairmen who want to form a partnership and open a jewellery store. An attorney prepares their partnership agreement, which indicates that assets invested in the partnership will be recorded at their fair market value and that liabilities will be assumed at book value. The assets contributed by each partner and the liabilities assumed by the partnership are as the following: Assets Kumaresan Cheng Total 40,000 52,000 4,000 1,000 20,000 30,000 20,000 3,000 500 70,000 72,000 7,000 1,500 30,000 Cash Accounts receivable Allowance for uncollectable accounts Supplies Equipment Liabilities Accounts payable 10,000 32,000 9,000 41,000 REQUIRED: Prepare the journal entries necessary to record the original investments of Kumaresan and Cheng in the partnership.
Problem 2 At April 30, partnership capital of EASCY ANG BM 99.5 Company are Mr. Easy P 52,000, Mr. Ang, P 48,000 and Mr. BM 99.2 P 18,000. The income sharing ratios are 5:4:1, respectively. On May 1, the EASY ANG BM 99.2 Company is formed by admitting Mr. PAPASA AKO to the firm as a partner. Instructions a. Journalize the admission of Mr. PAPASA AKO under each of the following independent assumptions. 1. Mr. PAPASA AKO purchase 50% of Mr. BM 99.2's ownership interest by paying him P 16,000 in cash. a. Mr. PAPASA AKO purchase 33 1/3% of Mr. Ang's ownership interest by paying him P 15,000 in cash b. Mr. PAPASA AKO invest P 62,000 ofr a 30% ownership interest, and bonuses are given to the old partners. C. Mr.PAPASA AKO invest P 42,000 for a 30% ownership interest, which includes a bonus to the new partner. 2. Mr. Ang's capital balance is P 32,000 after admitting Mr. PAPASA AKO to the partnership by investment. IF Mr. Ang's ownership interest is 20% of total partnership capital, what were…
SCO PROFESSOR: NAME: SECTION: Problem #20 Withdrawal of a Partner position for the partnership on that date follows: Cebedo, Basa and Ibrahim Statement of Financial Position July 10, 2019 Liabilities and Partners' Capital 骨 Assets P 74,000 36,000 135,000 30,000 P275,000 Liabilities P 45,000 120,000 Cash Trade Accounts Receivable (net) Plant Assets (net) Goodwill (net) Cebedo, Capital Basa, Capital Ibrahim, Capital 60,000 50,000 P275,000 Total Total Required: Prepare the journal entries to record Ibrahim's withdrawal under each of the following assumptions: 1. Ibrahim is paid P54,000, and the excess amount paid over Ibrahim's capital account balance is recorded as a bonus to Ibrahim from Cebedo and Basa. 2. Ibrahim is paid P45,000, and the difference is recorded as a bonus to Cebedo and Basa from Ibrahim. * 1oranim accepted cash of P40,500 and plant assets (equipment) with a current fair value of P9,000. The equipment had cost P30.000 and was 60% depreciated, with sidual value (Record…