The following Information was obtained from the records of Alben Traders, apartnership business with Albert and Bennile as partners, after the net profit wasappropriated between the partners.Partners' salaries240 000Interest on drawings3 000Interest on capital60 000Total share of remaining loss24 000Drawings180 000Which one of the following reflects the net profit?A. R279 000B.R273 000C.R327 000D. R453 000ipe here to search

Here in this case, we are required to calculate net profit amount. We know that, partners share are…

Answered: The following Information was obtained…

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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21. Pass Journal entries to record the following arrangements in the books of the firm: (a) B and C are partners sharing profits in the ratio of 3: 2. D is admitted paying a premium (goodwill) of 2,000 for 1/4th share of the profits, shares of B and C remain as before. (b) B and C are partners sharing profits in the ratio of 3: 2. D is admitted paying a premium of 2,100 for 1/4th share of profits which he acquires 1/6th from B and 1/12th from C. 2 + +
The capital balances and profit and loss ratios of the partners in ABC Co. are as follows: Capital 40,000 60,000 80,000 180,000 P/L 40% A B 30% 30% Total D purchases 25% of A's, B's and C's capital interests for P60,000. The partners used the 'book value method' to record D's admission. Which of the following statements is most likely to be correct? The partnership's total equity increases after recording D's admission. The admission of D is accounted for as a transaction between D and the partnership. Goodwill of P15,000 must be recorded, according to the PFRS O An equity transfer of P45,000 will be made from the selling partners to D.
Following is a balance sheet for the partnership business of Amy, Lucy, and John: Assets Amount ($) Liabilities & Equity Amount ($) Cash 50,000 A/P 10,000 Inventory 45,000 N/P 50,000 Land 60,000 Building 230,000 Acc. Dep. 60,000 170,000 Amy's Capital Lucy's Capital John's Capital 130,000 80,000 55,000 Total 325,000 Total 325,000 The profit and loss sharing ratio between Amy, Lucy, and John was 2:1:1 respectively. Suppose John is retiring during the year. The appraisal of assets shows that current market value of inventory is $35000, while land valued at $92000. Required: Record the journal entries for appraisal of assets and John's retirement if he received $35000 in cash and a note payable of $55000. do not give answer in image format
5. Partners X, Y and Z have capital balances capital balances in a partnership of P140,000, P60,000 and P1,800,000. The operations for the year resulted in a loss of P240,000. What will be the capital balance of Y if the three partners share in the profits of the partnership in the ratio of 2:2:6?
Partners Ala, Gerald, and Mike share profits and losses 5:3:2, respectively, and their balance sheet on October 31, 2005 follows: Cash P 240,000 Accounts payable 600,000 Other assets 2,160,000 Ala, capital 444,000 Gerald, capital 780,000 Mike, capital 576,000 2,400,000 2,400,000 The assets & liabilities are recorded at their current fair value. Gerry is to be admitted as a new partner w/ a 1/5 interest in capital & earnings. Ala was credited a bonus of P15,000. How much should Gerry contribute? a. 487,500 b. 456,000 c. 450,000 d. 480,000
Before liquidation, the following is the financial position of the partnership W, X, Y and Z: W, capital 275,000 W, loan 50,000 X, capital 225,000 Y, capital 257,500 Z, capital 342,500 P&L ratio is 4:3:2:1, respectively. 300,000 was received from certain assets are sold and are distributed to partners. What cash amount should Z receive? a. 300,000 b. 0 c. 135,834 d. 166,166
The financial position of the partnership Marie, Shey, Allan and Roi, just prior to liquidation shows: Marie, Loan 25,000 Marie, Capital 137,500 Shey, capital 128,750 Allan, capital 171,250 Roi, Capital 112,500 The partners share profits and losses on a 4:3:2:1 ratio, respectively. Certain assets are sold for P150,000 and is distributed to partners. How much cash should Allan receive? a. 0 b. 50,000 c. 67,917 d. 82,083
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
A, B, and C are in partnership as recreational suppliers, sharing residual profits or losses in the ratio of 5:2:3 respectively. At 1st November 2011 their capital and current balances were: Capital account Current account TZS TZS A 8,000,000 580,000 Cr 10,000,000 350,000 Dr 12,000,000 210,000 Cr Avitus Dominick: Msc Finance and Investment, CPA (T ) & BAC (0714-336097) 16
answer in good accounting form
2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. Q2. How much did See receive in the liquidation? a. 0 b. 3,000 c. 5,000 d. 15,000
Orion, Leanna and Aric were partners sharing profits and losses in the proportion of 2:2:1, following is their Balance Sheet as on 31st March, 2008. Balance Sheet as on 31 March, 2008 Assets Liabilities Capital Accounts: Orion Leanna Aric General Reserve Creditors Orion's Loan A/c Bills payable Amount $ Machinery 30,000 Stock 10,000 Debtors 10,000 Loss: R.D.D. 3,000 Investment 20,000 Profit and Loss A/c 4,000 Bank 7,000 84,000 27,500 1,500 2) Dissolution expenses were $ 1,500. 3) Goodwill of the firm realised $ 12,000 Pass the necessary Journal entries in the books of the firm. Amount $ 25,000 10,000 26,000 12,000 9,000 2,000 84,000 On the above date the partners decided to dissolve the firm: 1) Assets were realised: Machinery $ 22,500, Stock $9,000, Investment $ 10,500, Debtors $ 22,500.

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