The following Information pertains to ABC Partnership of A, B and C: A. Capital (20%) P 200,000 B. Capital (30%) 200,000 C. Capital (50%) 300,000 On this date, the partners agreed to admit D into the partnership. Assuming D purchased 50% from all the partners A, B, and C and pays total amount of P500,00Q How much would be the personal gain of Partner A for selling his 50% interest to D?

The following Information pertains to ABC Partnership of A, B and C: A. Capital (20%) P 200,000 B. Capital (30%) 200,000 C. Capital (50%) 300,000 On this date, the partners agreed to admit D into the partnership. Assuming D purchased 50% from all the partners A, B, and C and pays total amount of P500,00Q How much would be the personal gain of Partner A for selling his 50% interest to D?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 6MC: Juan contributes marketable securities to a partnership. The book value of the securities is $7,000...

See similar textbooks

Similar questions

The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have capital balances of $45,000 each. Prepare a schedule showing how the bonus should be divided if Ashanti joins the partnership with a $60,000 investment. The partners new agreement will share profit and loss in a 1:3 ratio.
The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
Juan contributes marketable securities to a partnership. The book value of the securities is $7,000 and they have a current market value of $10,000. What amount should the partnership record in Juans Capital account due to this contribution? A. $10,000 B. $7,000 C. $3,000 D. none of the above
of their respective capital & profit or loss interests for 20.000. RADON will pay the money directly to the other parthers. the admission of RADON under Bonus Method, the partners agreed to adjust their capital balances in proportion to the new Profit & Loss ratio. What are the fapital balances of the Me ma partnership? HELIUM/ (aP 144,000. P 155,200 P 155,200 P 173,200 of cap KRYPTON RADON P 80,000 P 80,000 P 90,000 P 90,000 NEON ARGON P 96,000 P 86,400 P 86,400 P 98,400 P 48,000 P 41,600 P 41,600 P 47,600 P 32,000 P 36,800 P 36,800 :32 P 40,800 31. 20arry & Curly were partners with capital balances on January 2, 2012 of P 78,000, P 50,000 & P44,000 respectively. Their profit ratio is 5:3:2 while their capital interest ratio is 4:4:2. on July 1, 2012, Andy was admitted by the partnership for 26% interest in capital & 20% in profits by contributing P 42,000 cash & the old partners agree to bring their interest to their old capital & profit interest sharing ratio. The partnership had a…
1. X is indebted to the partnership for P10,000.00 and to the managing partner, Y, for P20,000.00. Y was able to collect from X, P6,000.00. How much should Y give the partnership? a. P2,500.00 b. P2,000.00 c. P3,000.00 d P1,500.002. The ZXC Partnership is very successful. However, it was later on discovered that Partner T, the accountant of the partnership, was working as a part-time accountant in a university. What is the remedy of the partnership against T? a. None of the above b. .The partnership may compel A to remit all his salaries. c. The partnership may compel A to resign in the university. d. The partnership may file a criminal complaint of estafa against A
Requirement: Compute for the respective shares of the partners in 3. The partnership agreement of A and B stipulates the following: Annual salaries of P100,000 for A and P60,000 for B. 20% bonus to A, based on profit after salaries and bonus. Balance is shared equally. The partnership earned profit of P520,000 before salaries and bonus. Requirement: Compute for the respective shares of the partners in the profit. 4. A and B's partnership agreement provides for an annual salary allowance of P100,000 for A and 10% interest on the weighted average capital balance of B. The remainder is shared equally. During the period, the partnership earned profit of P200,000. B’s capital account had a beginning balance of P120,000. B made additional investments of P60,000 on March 1, P40,000 on Sept. 30, and made drawings of P30,000 on Aug. 1 and P9,000 on Nov. 1. Requirement: Compute for the respective shares of the partners the profit.
In the ABC partnership (to which D seeks admittance), the capital balances of A, B, and C, who share income in the ratio of 5:3:2, are: A. capital P1,000,000 B,capital 600,000 C,capital 400,000 How much is the estimated amount to be invested by D for a 20% interest?
4. X, Y, and Z have capital balances of P40,000.00, P50,000.00, and P18,000.00 and a profit – sharing ratio 4:2:1, respectively. If X received P8,000.00 upon liquidation of the partnership, the total amount received by partner Z was: a. P10,000.00 b. P 8,000.00 c. P34,000.00 d. P -0- 5. Assume the same facts in No. 4, above, except that X received P26,000.00 as a result of the liquidation. The total gain/loss on realization amounted to: a. P 3,500.00 b. P14,000.00 c. P 7,000.00 d. P24,500.00
A and B have capital balances of P150,000 and P180,000, respectively. C is to invest P60,000 for 15% in the partnership interest and also in the profit and loss. There is an undistributed net income in the amount of P80,000. Partners A and B share profit and loss 65.35. 1. How much is the capital credit of C upon his admission? 2.How much is the bonus to partner A from partner C? 3.If equipment is overvalued, how much is the share of partner B in the overvaluation of the equipment?
Capital balances in the WXY partnership are W. Capital P 60,000; X Capital P 50,000 and Y. Capital P40,000 Profits and losses are 5:3:2, respectively. The WXYZ partnership is formed by admitting Z to the partnership with a cash investment of P 60,000 for a 25% capital interest. The bonus to be credited to Y in admitting Zis
2. The capital balances of partners Po and Gi are as follows:Po GiJanuary 1, Beginning P100,000 P200,000June 30, investment 50,000 -September 30, withdrawal - (100,000)Balance P150,000 P100,000Their agreement is to share profit and loss based on average capital balance. How muchis the share of Gi in the partnership’s income of P450,000?
Capital balances in the WXY partnership are W, Capital P 60,000; X Capital P 50,000 and Y Capital P40,000, Profits and losses are 5:3:2, respectively. The WXYZ partnership is formed by admitting Z to the partnership with a cash investment of P 60,000 for a 25% capital interest The bonus to be credited to Y in admitting Z is