The partnership agreement of A and B provides that interest at 10% per year is to be credited to each partner on the basis of weighted-average capital balances. The following movements in the capital accounts of A and B is as follows: A, Capital Balance, Jan. 1, 2022 Additional investment, June 1 Withdrawal, October 1 Balance, Dec. 31, 2022 B, Capital Balance, Jan. 1, 2022 Additional investment, April 1 Withdrawal, July 31 Balance, Dec. 31, 2022 Compute the interest allocated to B. 110,000 33,000 (20,000) 123,000 160,000 65,000 (30,000) 195,000

The partnership agreement of A and B provides that interest at 10% per year is to be credited to each partner on the basis of weighted-average capital balances. The following movements in the capital accounts of A and B is as follows: A, Capital Balance, Jan. 1, 2022 Additional investment, June 1 Withdrawal, October 1 Balance, Dec. 31, 2022 B, Capital Balance, Jan. 1, 2022 Additional investment, April 1 Withdrawal, July 31 Balance, Dec. 31, 2022 Compute the interest allocated to B. 110,000 33,000 (20,000) 123,000 160,000 65,000 (30,000) 195,000

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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-X, Y, and Z formed a partnership on Jnauary 1, 2021, and contributed P150,00; P200,000; P300,000, respectively. Their articles of co-partnership provide that the operating income be shared among partners as follows: as salary, P24,000 for X; P18,000 for Y; and P12,000 for Z; interest of 12% on the average capital during 2021 of the three partners; and the remainder in the ratio of 4:2:4, respectively. The operating income for the year-end December 31, 2021 amounted to P200,000. X contributed additional capital of P30,000 on July 1, and made a drawing of P10,000 on October 1; Y contributed additional capital of P20,000 on August 1, and made a drawing of P10,000 on October 1; and Z made a drawing of P30,000 on November 1, 2021. How much is the average capital of partner X? *
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Aquila partnership began its first year of operations with the following capital balances: N, Capital: P143,000 A, Capital: P104, 000 C, Capital: P143,000 The Articles of Partnership stipulated that profits and losses be assigned in the following manner: -N was to be awarded an annual salary of P26,000 with P13,000 salary assigned to C -Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year. -The remainder was to be assigned on a 4:3:3 basis, respectively. -Each partner was allowed to withdraw up to P13,000 per year. Assume that the net loss for the first year of operations was P36,000 with net incomeof P42,000 in the second year. Assume further that each partner withdrew the maximum amount fiom the business each year. A. What was C's share of income or loss for the first year? B. What was the balance in C's capital account at the end of the second year?
On December 31, 2020, the Statement of Financial Position of ABC Partnership provided the following data with profit or loss ratio of 1:6:3: Current Assets Noncurrent Assets 1,000,000 2,000,000 Total Liabilities A, Capital B, Capital C. Capital 600,000 900,000 800,000 700,000 On January 1, 2021, D is admitted to the partnership by purchasing 40% of the capital interest of B at a price of P500,000. • What is the capital balance of B after the admission of D on January 1, 2021? a. 540,000 b. 480,000 c. 420,000 d. 300,000
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Use the following information for numbers 29 and 30. On June 30, 2018, the balance sheet for the partnership of D, E and F, together with their respective profit and loss ratios, is summarized as follows: Assets 300,000 D, Loan 15,000 D, Capital (20%) 70,000 E, Capital (20%) F, Capital (60%) Total Liabilit ies and Capital 65,000 150,000 Total Assets 300,000 300,000 D has decided to retire from the partnership, and by mutual agreement the assets are to be adjusted to their fair values of P260,000 at June 30, 2018. It is agreed that the partnership will pay D, P102,000 cash for his interest exclusive of his loan which is to be repaid in full. After D's retirement, what are the capital balances of each partner? 29. Partner E. 30. Partner F.
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