The statement of financial position of A, B, C partnership as of December 31, 2020 ispresented below:CASHP50,000LIABILITIESP80,000OTHER ASSETS300.000A, LOAN20,000RECEIVABLE10,000A, CAPITAL120,000FROM BB, CAPITAL90,000C, CAPITAL50,000TOTALP360,000TOTALP360,000Profits and loss ratio is 30%, 50% and 20% for A, B and C, respectively. Other assets wererealized as follows:CASHDATEBOOK VALUERECEIVEDJAN. 202090,000P120,000FEB. 2020100,000P80,000MAR. 2020125,000P100,000Liquidation expenses paid are as follows:January - P3,000February - P5,000Cash is distributed as assets are realized; how much is the total cash received by partnerA at the end of the liquidation?

Partnership means where two or more person comes together to do some common business activity and…

Answered: The statement of financial position of…

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 condensed Balance Sheet of the XY partnership on December 31, 2024, appears below. $ 60,000 $ 60,000 200,000 90,000 110,000 $260.000 Cash Other Assets Total Assets Liabilities X, Capital Y, Capital Total Liabilities and Capital $260.000 X and Y share profits and losses in the ratio 40:60. Each of the following questions is independent of the others. Prepare journal entries for each of the following: Show all computations. a. Refer to the above information. Assume that Z purchases a one-fourth of Y's capital interest directly from Y for a total of $60,000. (Direct purchase) Compute each partner's balance after Z is admitted. b. Refer to the above information. Assume Z invests $60,000 cash into the XY partnership for a one-fourth interest in partnership capital and profits. (Bonus method) Compute each partner's balance after Z is admitted.
. The GHK partnership has the following balance sheet: Cash $ 30,000 Other assets $170,000 Recourse liabilities $ 50,000 Capital – G $ 50,000 Capital – H $ 50,000 Capital – K $ 50,000 Partnership profits are allocated equally. Losses are allocated 50% to G, 25% to H, and 25% to K. The partnership agreement has a capital account deficit restoration requirement. How should the recourse liability be allocated?
The year- end balance sheet and residual profit and loss sharing percentages for the ABC Partnership on December 31, 2016, are as follows: P30,000 40,000 480,000 Cash Accounts payable P200,000 50,000 70,000 Loan to A Loan from B A, capital (25%) B, capital (25%) C, capital (50%) Total assets P550,000 Total liabilities and equity P550,000 Other assets 80,000 150,000 The partners agree to liquidate the business and distribute cash when it becomes available. A cash distribution plan for the ABC Partnership will show that cash available, after outside creditors are paid, will initially go to?
7. The partnership agreement of Hi and Rap provides that interest at 14% per year is to be credited to each partner on the basis of weighted average capital balances. A summaryof Rap capital account for the year ended December 31, 2015, is as follows:Balance, January 1 P210,000Additional investment, July 1 60,000Withdrawal, August 1 (22,500)Balance, December 31 P247,500What amount of interest should be credited to Rap’s capital account for 2015?
Financial position for ZBM Partnership at December 31 2019: Cash 26,000 Accounts Payable 45,000 Equipment 24,000 Zara Capital 44,000 Building 67,000 Bong Capital 32,000 Merry Capital (4, 000) Total 117,000 Total 117,000 Assume that profits and losses are shared in the following ratios: 50:40:10. The partnership is liquidating and selling the partnership's non-cash assets for USD81,000. Merry is unable to make any payment on any capital deficit. What amount of money should be paid to Bong?
What is the amount of cash received by A on February 28, 2021? P75,000P25,000P50,000None
The statement of financial position May Partnership on December 31, 2020 is given below: Cash P45,000 Accounts payable P70,000 Receivable 25,000 Loan payable to Mateo 30,000 Inventories 180,000 Mateo, capital 75,000 Plant and equipment 120,000 Vicente, capital 75,000 Ibe, capital 120,000 Total P370,000 Total P370,000 A new partner, Francisco, was admitted on January 1, 2021, who purchased Mareo’s capital by giving his car costing P250,000 but with a book value of P125,000 and a market value of P100,000, How much was Francisco, capital credited? Answer without peso signs but with commas.
The condensed balance sheet and profit – sharing ratio of the partnership of Wenda, Wendy, and Wilma are presented below: Cash P 22,500.00 Liabilities P52,500.00 Due from Wanda 7,500.00 Due to Wilma 10,000.00 Other assets 205,000.00 Wanda, cap’l (4) 75,000.00 Wendy, cap’l (3) 50,000.00 Wilma, cap’l (3) 47,500.00 Total assets P235,000.00 Total equities P235,000.00 21. The partners agreed to liquidate and they sold all the Other assets for P150,000.00. How much of the available cash should go to Wanda? a. P45,500.00 b. P75,000.00 c. P42,500.00 d. P53,000.00 22. Refer to No. 21 above, how much will be received by Wendy in the partnership liquidation a. P41,000.00 b. P74,000.00 c. P33,500.00 d. P66,600.00
6. The following balances have been taken from the balance sheet of a partnership firm as atDec. 31, 2020:Debit Balances:Cash Rs. 325,000, Accounts Receivable Rs. 300,000, Merchandise Inventory Rs. 575,000,Furniture Rs. 300,000Credit Balances:Allowance for bad debt Rs. 30,000, Allowance for depreciation-Furniture Rs. 120,000, AccountsPayable Rs. 50,000, X Capital Rs.500,000, Y Capital Rs. 600,000, Z Capital Rs. 200,000 The partners were sharing profit and loss in their capital ratio. On the mentioned date theydecided to liquidate the partnership firm and the following transactions were performed:a. Rs. 250,000 was collected as full and final settlement of accounts receivable.b. Merchandise inventory was sold for Rs. 500,000 cash.c. Furniture was sold for cash Rs. 145,000d. Accounts Payable was fully paid.e. Loss on liquidation was distributed among the partners.f. Final Settlement to the partners was made.Required:Record the above transactions in General Journal
PROBLEM G: On December 31, 2019, the statement of financial position of BRY Partnership shows the following data with profit or loss sharing ratio of 2:3:5: Cash P1,500,000 Liabilities to outside creditors В, Сарital R, Capital Y, Capital P2,000,000 1,500,000 1,250,000 750,000 Non-cash asset 4,000,000 On January 1, 2020, the partners decided to wind up the partnership affairs. During January, non-cash assets with book value of P3,000,000 were sold for P2,000,000 and liquidation expenses amounting to P200,000 were paid. 40% of total liabilities were also paid during January. P300,000 cash was withheld during January for future liquidation expenses. 8. What is the amount received by partner R on January 31, 2020? A. 200,000 B. 380,000 C. 500,000 D. 890,000
Adam and Boru are partners sharing profit and loss in the ratio of 1:1. Their Statement of Financial Position(Balance Sheet) stood as at 31.12.2020 as follows: A and B Partnership Statement of Financial Position As at 31st December 2020 ASSETS 2020 Current Assets Kshs'000 Kshs'000 Cash and Cash Equivalent 43,500 Short Term Deposits - Prepaid Insurance 1,000 Debtors 20,500 Less Provision for Doubtful Debts (1,000) 19,500 Inventories 30,000 94,000 Non Current Assets Machinery 22,000 Less:Accumulated Depreciation - 22,000 Buildings 30,000 Less:Accumulated Depreciation - 30,000…
The following is the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation A/c, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. 375000 x Capital A/c 112500 Y Capital A/c 50000 Sundry creditors 100000 Sales (net) 50000 Discount Land and Buildings Plant and Machinery 125000 75000 Wages 62500 Opening Stock of Finished Goods 812500 Opening Stock of Raw material Opening Stock of Work in Progress Sundry debtors 6250 45000 Provision for bad debts 3750 125000 Commission 3750 Y's Loan A/c 2250 25000 Carriage inwards 75000 Carriage outwards Factory Expenses 18750 Royalties 3750 Purchase of Raw material (net) 187500 16250 7250 10000 Factory rent & taxes Discount Office rent Insurance 5000 3750 18750 30000 20500 1185000 The following additional information is to be taken into consideration: Bad debts Office Expenses Salaries of works manager Cash at bank…

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