The firm also has two alternatives to find out the new ratio and sacrificing ratio of the partners areIf A and B are the partners sharing profits and losses in the ratio of 5:3, admitting C for 1/5th shareof future profits in which he acquires 3/16th from A and 1/16th from B and,If A and B are the partners and sharing profits and losses in the ratio of 4:1, admitting Cas a newpartner in which he acquires 2/5th of A's share and 1/5 of B's share.Calculate new ratio and sacrificing ratio of the partners and suggest which alternative is good forthe new partner? Comment it.

Introduction Partnership may be defined as that type of business firm in which two or more persons…

Answered: The firm also has two alternatives to…

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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The partnership which is being liquidated by installment method has a final cash balance of P100,000 after selling all the non-cash assets. The Profit and Loss ratio is 5:3:2. Partners' capital accounts are as follow: A, Capital - P70,000; B, Capital - P40,000; C, Capital - (P10,000). C is already insolvent. What is the distribution of cash to all the partners? a.) A - P33,333 B - P33,333 C - P33,333 b.) A - P50,000; B - P30,000; C - P20,000 c.) A - P50,000; B - P50,000; C - None d.) A - P63,750 B - P36,250 C - None SHOW COMPLETE SOLUTION
A, B and C formed a commercial partnership. D represented himself as a partner in the partnership to E who, on the belief of such representation, extended credit of P50,000 to the partnership. Assuming only B and C consented to such representation, who shall be liable to E? a. B, C and D are partners by estoppels and thus, are liable to E? b. Only partners A, B and C are liable to E for the benefit extended to them. c. Only D who made the representation is liable to E. d. All of A, B, C and D are liable because of partnership liability for the credit extended to the partnership by E.
What amount of income would be necessary so that Irene would consider the choices to be equal?
Andi, Berri and Cori are partners sharing profit and loss in the ratio 3:5.2. Capital balances before the admission of Dani were P80,000, P100,000 and P120,000 respectively. Assuming Dani is to invest P300,000 in the new partners' capitalization of P600,000, but would be credited for P290,000, after the admission, Andi would have a capital balance of
(All partners sacrifice) : A and B partners sharing profits and losses in the ratio of 3:2. They admit C into partnership for 1/4 share in profits. C’s brings $ 3,00,000 as capital and $ 1,00,000 as goodwill. New profit sharing ratio of the partners shall be 3:3:2. Pass necessary Journal entries.
P and q are partners sharing profit and loss in the ratio of 2:1 they admit mr r into the firm for 1/4 the share calculated new ratio and scrifice ratio
Salim and Sultan are partners sharing profit and loss in the ratio of 5 and 3. Partner Shihab was admitted in to a firm, which he acquires 3/8th share from partner Salim and 2/8th share from Partner Sultan. So, the new profit sharing ratio will be: a. 25 : 18 : 21 b. 30 : 12 : 21 c. 21 : 16 : 25 d. 25 : 12 : 16 PLZ FAST
A's capital is P280,000 and D's is P80,000 and they share income in a 6:4 ratio, respectively . They decide to admit G to the partnership. A and D agree that some of the inventory is obsolete. The inventory account is decreased before G is admitted. G invests P80,000 for a 25% interest. Compute for the capital balance of D after the admittance of G.
X, Y, Z are partners sharing profits in the ratio of 5:3:2. Z retires and the ratio between X and Y is 3:2. Find out the gaining ratio? O a. ½: 1/2 O b. 3:2 O c. 3/5: 2/5 O d. 1:1
Use the following options and match them with the descriptions. Has the most potential for conflict Get to keep all profits 1. Sole Proprietorship Limited Liability 2. Partnership owners can specialize 3. Corporation profits taxed twice Easiest legal process to start > > > >
What of the following is NOT a typical term in the contract between GPs and LPs (LPA: limited partnership agreement)? Group of answer choices a. LPA is designed to align the interests of the GP with the limited partners (LPs) using a profit-sharing agreement of private equity. b. At the exit, the LPs receive the capital that was invested in the company and the profits are split. c. The LPs typically receive 20 percent and the GPs 80 percent of the capital gain.

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