sharing profits as 2:2:1. Their Balance Sheet was as follows: BALANCE SHEET as at 31st December, 2014 Liabilities •Creditors Capital Account: Assets $ 4,000 Cash 4,000 Bills Receivable 2,000 10,000 Inventory 4,000 Premises 2,000 A 4,000 B 10,000 20,000 20,000 They decided to dissolve the firm on the above date. The assets realised and liabilities were paid as follows : Inventory realised $ 4,520 A took over Premises at $ 39,000 Creditors were paid $ 3,800 C took over Bills Receivables at $1,800 Realisation expenses $120 Show the Realisation Account, Partners' Capital Accounts and Cash Account.

sharing profits as 2:2:1. Their Balance Sheet was as follows: BALANCE SHEET as at 31st December, 2014 Liabilities •Creditors Capital Account: Assets $ 4,000 Cash 4,000 Bills Receivable 2,000 10,000 Inventory 4,000 Premises 2,000 A 4,000 B 10,000 20,000 20,000 They decided to dissolve the firm on the above date. The assets realised and liabilities were paid as follows : Inventory realised $ 4,520 A took over Premises at $ 39,000 Creditors were paid $ 3,800 C took over Bills Receivables at $1,800 Realisation expenses $120 Show the Realisation Account, Partners' Capital Accounts 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

Related questions

Q: Bostian, Inc. has total assets of $520,000. Its total debt outstanding is $185,000. The Board of…

A: Debt-to- asset ratio is the percentage of the debt with respect of total asset Debt-to-assets…

Q: Entity Z has total total assets of $100,000 made up of 45% equity and 55% debt. The expected loss…

A: VIE stands for Variable interest entity refers to the structure of the business that defines the…

Q: BSO, Inc., has assets of $600,000 and liabilities of $450,000, resulting in a debt-to-assets ratioof…

A: Debt-to-assets ratio = Total liabilities / Total assets

Q: (Financial forecasting-discretionary financing needs) J. T. Jarmon, Inc. has been in business for…

A: Retained Earnings:It is the amount of profits that are being retained by the business after paying…

Q: Accounting for debt and equity investments This problem continues the Canyon Canoe Company…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by…

Q: Given the following account information for Leong Corporation, prepare a statement of financial…

A: Income statement is the financial statement that records all the income and expenses of the business…

Q: 45. ABCD's balance sheet before liquidation shows the following figures. In $ Activities 90,000…

A: Profit sharing ratio 2:1:1:1

Q: uity balances. On January 2, 2025, it purchased for cash $20,760 of d interest of $4,100 during the…

A: Answer :a) Net income Net income = Interest received Net income = $4,100 b) Comprehensive income…

Q: ginformation at its annual meetings: The company had cash and marketable securities orth $4,159,357,…

A: SOLUTION:- Net working capital = Current assets - Current liabilities Current assets =$1,235,455…

Q: Digital Press and Book Publishers Ltd had the following balance sheets as at Dec. 31, 2012 DIGITAL…

A: Return on equity is a financial metric that helps in evaluating the profitability position of a…

Q: 1. SLM, Inc., with sales of $1,000, has the following balance sheet: SLM, Incorporated Balance Sheet…

A: The percentage of sales method of forecasting is a method that makes forecasting predictions based…

Q: QUESTION 4 (20 Marks) REQUIRED Use the information provided below to answer the following questions.…

A: The ratio that determines the company's profitability after the cost of sales have been deducted…

Q: December Total liabilities 31 December 2021 Share Capital 31 December 2021 Retained Earnings 31…

A: Lets understand the basics.As per balance sheet equation, total assets are always equal to total…

Q: Current Attempt in Progress Oriole Corporation reported the following information (in thousands) at…

A: Absolutely, here's the financing activities section of Oriole's statement of cash flows for the…

Q: Dividends, reserves, retained earnings During the year ended 30 June 2022, the directors of…

A: The retained earnings represent the earnings not distributed. The retained earning is the…

Q: ssom Limited reported the following selected information for the year ended March 31, 2021:…

A: The income statement explains the financial performance of the company for a particular period of…

Q: The trial balance of Rollins Incorporated included the following accounts as of December 31, 2024:…

A: The statement of income is produced at yearend to report the profit or loss for the period. The…

Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

A, B and C were in partnership
sharing profits as 2:2:1. Their Balance Sheet was as follows:
BALANCE SHEET
as at 31st December, 2014
Liabilities
•Creditors
Assets
4,000 Cash
4,000
Capital Account :
Bills Receivable
2,000
10,000 Inventory
4,000 Premises
2,000
A
4,000
10,000
20,000
20,000
They decided to dissolve the firm on the above date. The assets realised and liabilities were paid as
follows :
Inventory realised
$ 4,520
A took over Premises at
$ 39,000
Creditors were paid
$ 3,800
Ctook over Bills Receivables at $1,800
Realisation expenses
$120
Show the Realisation Account, Partners' Capital Accounts and Cash Account.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Solution

VIEW

Step 3 Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

please Correct solution with Explanation and Do give image format
The following trial balance relates to Queenie as at 30 September 2019: RM'000RM'000 Revenue (note (i)) 312,890 Cost of sales 148,900 Distribution costs 42,125 Administrative expenses (note (ii))34,680 Loan note interest and dividend paid (notes (ii) and (iii)) 19,500 Investment income3200 Equity shares of 25 cents each 50,000 5% loan note (note (ii)) 30,000 Retained earnings at 1 October 20187,300 Plant and equipment at cost (note (iv)) 90,000 Accumulated depreciation at 1 October 2018: plant and equipment 32,400 Equity financial asset investments (note (v))40,000 Inventory at 30 September 201930,040 Trade receivables 42,900 Bank10,845 Current tax (note (vi)) 1,100 Deferred tax (note (vi)) 900 Trade payables23,400 460090460090 The following notes are relevant: (i) On 1 October 2018, Queenie sold one of its products for RM12 million (included in revenue in the trial balance). As part of the sale agreement, Queenie is committed to the ongoing servicing of this product until 30…
Clayton Industries has the following account balances: Current assets Noncurrent assets The company wishes to raise $45,000 in cash and is considering two financing options: Clayton can sell $45,000 of bonds payable, or it can issue additional common stock for $45,000. To help in the decision process, Clayton's management wants to determine the effects of each alternative on its current ratio and debt-to-assets ratio. Required a-1. Compute the current ratio for Clayton's management. Note: Round your answers to 2 decimal places. Currently If bonds are issued If stock is issued $ 22,000 Current liabilities 77,880 Noncurrent liabilities stockholders' equity Currently If bonds are issued If stock is issued Current Ratio 2.44 to 1 a-2. Compute the debt-to-assets ratio for Clayton's management. Note: Round your answers to 1 decimal place. Bonds Stock to 1 to 1 Debt to Assets Ratio Additional Retained Earnings $ 9,000 50,000 48,888 % % % b. Assume that after the funds are invested, EBIT…
Meldrum Pty Limited (a private company) had the following transactions in relation to its franking account: DateDetailsAmount1 July 2018Opening balance$2,0006 Sept 2018Received a fully franked dividend from BHP Limited$49,0007 Sept 2018Paid Goods and Service Tax$25,0009 Sept 2018Paid a dividend franked to 50%$56,0002 Oct 2018Paid income tax instalment$6,00011 Nov 2018Received a refund of income tax$49,0007 Feb 2019Paid income tax instalment$5,00014 Mar 2019Paid a dividend fully franked$56,0008 April 2019Paid income tax instalment$6,0003 May 2019Paid fringe benefits tax$50,00015 June 2019Paid a dividend 30% franked$42,000Required: (a)What is the closing balance of the franking account on 30 June 2019? (b)What are the consequences of the closing balance of the franking account? (c)What other tax consequences are there for Meldrum Pty Ltd? 3 / 3 125%
Kampa Co mpany and A rbor Company are similar fir ms that operate in the sa me in dustry. Arbor began operations in 2001 and Kampa in 1995. In 20 06, both companies pay 7 % interest on their debt t o creditors. The following additional infor mation is available: KAMPA COMPANY ARBOR COMPANY 2006 2005 2004 2006 2005 2004 Total a sset turnover Return on total assets Profit margin 3.0 8.9% 2.3% $400,000 2.7 2.9 1.6 1.4 1.1 5.2% 9.5% 2.4% $370,000 8.7% 5.8% 5.5% 2.7% $200,000 2.2% 2.9% 2.8% Sales $386.000 $160,000 0 $100,000 Write a one-half page report comparing Kampa and Arb or using the available information. Your discussion sh ould include their ability to use assets efficiently to produce profits. Als o com ment on their success in employing financial leverage in 2 006. Selected comparative financial statements of Coh orn Co mpany follow:
Paulson Company had the following on the dates indicated:12/31/18 12/31/17Total assetsTotal liabilities$ 530,00036,000$ 350,00023,000Paulson had no stock transactions in 2018, so the change in stockholders’ equity for 2018 wasdue to net income and dividends. If dividends were $75,000, how much was Paulson’s netincome for 2018? Use the accounting equation and the statement of retained earnings.a. $92,000b. $242,000c. $167,000d. $317,000
A) Compute the return on equity (ROE) of Ka Ming Metal Manufacturing Ltd. (KM) and SunTool Metal Engineering works Ltd. (ST) during the year of 2021 using Du Pont Identityformula. Compare and explain the differences of THREE components being measuredbetween the two companies. [within 150 words] B) Ka Ming Metal Manufacturing Ltd. (KM) issued $2,000,000 in new long term debts with nochange in new equity sold in 2021, calculate the cash flow from assets.C)Name and calculate the maximum possible growth rate of Ka Ming Metal ManufacturingLtd. (KM) without external equity financing while maintaining a constant debt to equityratio.