Söle Proprietors For partnership, and any deficiency shall be paid in cash. Gabriel and Lucifer decided to combined their respective businesses into a partnership with an agreed total capital of P400,000. The noncash assets contributed by the two parties are as follows: Gabriel Lucifer Accounts receivable Notes receivable Merchandise inventories Furniture Equipment Accounts payable Book value P50,000 10,000 80,000 40,000 30,000 200,000 Fair value Book value Fair value P48,000 10,000 100,000 37,000 25,000 200,000 14,000 P50,000 15,000 P60,000 60,000 70,000 Required:

Söle Proprietors For partnership, and any deficiency shall be paid in cash. Gabriel and Lucifer decided to combined their respective businesses into a partnership with an agreed total capital of P400,000. The noncash assets contributed by the two parties are as follows: Gabriel Lucifer Accounts receivable Notes receivable Merchandise inventories Furniture Equipment Accounts payable Book value P50,000 10,000 80,000 40,000 30,000 200,000 Fair value Book value Fair value P48,000 10,000 100,000 37,000 25,000 200,000 14,000 P50,000 15,000 P60,000 60,000 70,000 Required:

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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Cohtributed P20,000 cash while Chok contributed P28,000 in cash and office equipment which cost P16,000 with a fair market value of P13,000, to a new partnership. The journal entry to record the partnership investments of Ann and Chok would have credit of Ann, Capital and Chok, Capital, respectively, in the amounts of A. P20,000 and P44,000 B. P44,000 and P20,000 C. P41,000 and P20,000 D. P20,000 and P41,000 57. On November 1, Audrey and Shon formed a partnership with Audrey contributing land valued at P180,000 and a building valued at P265,000. Shon contributed P195,000 in cash. The partnership assumed the mortgage on Audrey's property of P130,000. Profits and losses are to be shared equally. What are the capital balances of Audrey and Shon, respectively, after recording these transactions? A. P315,000 and P195,000 B. P380,000 and P130,000 C. P445,000 and P195,000 D. P255,000 and P255,000 58. Jose Mercado, a sole proprietor, entered into partnership with another individual. The…
X, Y and Z were partners sharing profits in the proportion of 3:2:1. Y Retires from the business. The Balance sheet of the firm on the date of retirement was as follows Liabilities Creditors Bills Payable General Reserve Capital Accounts X Y Z Amount (RO) 80,000 Cash at Bank 40,000 Stock 60,000 Debtors LESS Provision 160,000 RO 2000 120,000 Vehicle 80,000 540,000 Assets Machinery It was agreed among the partners Goodwill of the firm to be valued at Provision for Doubtful debts to be increased by Outstanding expenses to be brought into account Vehicle is to be depreciated by Stock is to be depreciated by Machinery is to be appreciated by Amount (RO) 20,000 60,000 80,000 100,000 280,000 540,000 96,000 4,000 7,600 17.5% 12.5% 7.5% Record the necessary Journal Entries and Prepare the necessary accounts and New Balance sheet of X and Z.
Show the solution in good accounting form. How much cash must be contributed by each of the partners after they contributed thier properties?
2.
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1. Show solution in good accounting form
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1. Show solution in good accounting form
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