Statement 1 – If partners X, Y and Z agreed to divide profit in the ratio of 1:2:3, this indicated that partner Z will always receive the largest share Statement 2 – To distribute profit/loss equally, simply divide the amount of profit/loss by two a. True; False b. False; True c. True; True d. False; False

Statement 1 – If partners X, Y and Z agreed to divide profit in the ratio of 1:2:3, this indicated that partner Z will always receive the largest share Statement 2 – To distribute profit/loss equally, simply divide the amount of profit/loss by two a. True; False b. False; True c. True; True d. False; False

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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13 The undistributed Profit in the partnership firm is shown in _____________ of the old Balance Sheet. a. Asset Side Only b. Liabilities Side Only c. None of the options d. Asset Side and Liabilities Side
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ADMISSION NEW PARTNER INVESTS PROBLEM B Acacia and Karla capital is P480,000 and P520,000. Profit share ratio is 4:6. Bubbles Invested P500,000 for a 30% Interest in the partnership. 3. What is the capital of Acacia after admitting Bubbles? a. 480,000 b. 500,000 c. 520,000 d. 550,000 4. What is the capital of Karla after admitting Bubbles? a. 480,000 b. 500,000 c. 520,000 d. 550,000 5. What is the capital of Bubbles after admission? a. 450,000 b. 500,000 c. 520,000 PROBLEM C d. 550,000 Partners All and Charish capital is P480,000 and P520,000. Their share profits and losses equally in their merchandising business. After admitting Blaire, they agreed to have a total capital of P2,500,000. The new partner invested P500,000 for a 30% interest in the business. 6. What is the capital of Ail and Charish after admitting Blaire? a. 500,000 and 750,000 b. 750,000 and 855,000 c. 855,000 and 895,000 d. 895,000 and 855,000 7. What is the capital of Blaire after admission? a. 500,000 b. 750,000 c.…
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7. What ate different classes of preference share capital? 8. When does a share capital become outstanding? 9. What are the steps to be followed in incorporating a partnership? 10. Explain the components of the shareholders' equity section of the statement of financial position (balance sheet) tod canital
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4.12 A, B, and C are partners sharing profits in the ratio of 3:2:5, respectively. The goodwill of the business (not recognized in the books) is valued at P 12,000. The capital accounts of the partners are as follows: P 40,000 30,000 20,000 P 90,000 C retires and is paid P 26,000. REQUIRED: Give journal entries to record the settlement with C using 3 methods. ABC
Problem V The balance sheet for the partnership of JJ, CC and TT, whose shares of profit and losses are 40,50, and 10 percent is as follows: Cash............... Inventory ....................... P 50,0000 360,000 Accounts Payable JJ, Capital CC, Capital TT, Capital...... Total liabilities and capital JJ сс IT a. P 56,000; P 70,000; P 14,000 b. P 16,000; P 20,000; P 4,000 Total assets.... P 410,000 The partnership will be liquidated in installments. As cash becomes available, it will be distributed to partners. If inventory costing P200,000 is sold for P140,000, how much cash should be distributed to each partners at this time? JJ сс C. P 32,000; Po; d. P 20,000; Po; P 150,000 . 160,000 TT P 8,000 P 20,000 45,000 55,000 P 410,000
What does 4:2:1 ratio mean in a partnership? It is the same as a. 40%; 20%; 10% b. 4/7:2/7:1/7 c.4/10:2/10:1/20 d.7/4:7/2:7/1 e.None of the above.
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