total increase in the capital
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Hallo and Ween are partners in Halloween Partnership sharing profits and losses 25% and 75%, respectively. On January 1, 2022, the partners revised their
Determine the total increase in the capital of Hallo on July 1, 2022.
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- A and B are partners in AB Partnership sharing profits and losses 25% and 75%, respectively. On January 1, 2020, the partners revised their profits and loss sharing ratio into 40% to A and 60% to B. On the date of change, the partnership’s land with a carrying value of P500,000 was appraised to have a fair value of P1,000,000. On August 1, 2020, the land was sold for P1,500,000. The total increase in the capital of B as a result of the above was:Griffin and Rhodes formed a partnership on January 1, 2022. Griffin contributed cash of P120,000 and Rhodes contributed land with a fair value of P160.000. The partnership assumed the mortgage on the land which amounted to P40,000 on January 1. Rhodes originally paid P90,000 for the land. On July 31, 2022, the partnership sold the land for P190,000. Assuming Griffin and Rhodes share profits and losses equally, how much of the gain from the sale of land should be credited to Griffin? O 30,000 15,000 O 35,000 12.857 3. Paul and Ray sell instruments through their partnership. To bring in additional funds and expertise, they decide to add Janet to the partnership. Paul's capital is P400,000, Ray's capital is P200,000, and Janet invested P180,000. It was agreed that Janet and Ray will have equal capital balances and Paul will have a 35% capital interest. Using the bonus method, what will be the adjusted capital of Paul? O 273,000 O 300,000 O 253,500 O 260,000Sugino and Rio formed a partnership on July 1, 2022. Sugino invested P20,000 cash, inventory valued at P15,000, and equipment valued at P67,000. Rio invested P50,000 cash and land valued at P120,000. The partnership assumed the P40,000 mortgage on the land. On June 30, 2023, the partnership reported a net loss of P24,000. The partnership contract specified that income and losses were to be allocated by allowing 10% interest on the original capital investment, salaries of P15,000 to Sugino and P20,000 to Rio, and the remainder to be divided in the ratio of 40:60. On July 1, 2023, Hayami was admitted into the partnership with a P70,000 cash investment. Hayami was given a 30% interest in the partnership because of his special skills. The partner elect to use the bonus method to record the admission. Any bonus should be divided in the old ratio of 40:60. On June 30, 2024, the partnership reported net income of P150,000. The new partnership contract stipulated that income and losses were to…
- A and B are partners of AB Partnership sharing profits and losses in the ratio 4:6. Their capital balances are P400,000 and P600,000, respectively. On October 1, 2019, upon mutual agreement of Partner A and Partner B, Partner C was admitted to the partnership, under different assumptions. Case a. C purchased one-half (1/2) of A’s interest for P250,000. b. C purchased one-third (1/3) of B’s interest for P150,000. c. C purchased one-fourth (1/4) of a partnership interest for P350,000. d. C purchased one-half (1/2) interest of Partners A and B by paying P600,000. Requirement: Journal entries for each of the cases and solutions in good form.Juan and Pedro formed a partnership on June 1, 2022. They agreed to split their profits on a 3:7 ratio. Each partner invested the following asset:JuanCash – P 30,000Office furniture – P 180,000PedroInventory – P 90,000Office equipment – P 160,000The office equipment was purchased in installments, and P 50,000 is still unpaid which the partners agree that the partnership would assume. To have a fair profit sharing the partners agreed that they would invest capital equal to their profit ratio. How much more should Pedro invest?On October 1, 2021, Pamu and Kevin formed a partnership and agreed to share profits and lossesin the ratio of 3:7, respectively. Balances of capital accounts should be in accordance with the profitand loss percentage on the date of partnership formation. Pamu contributed a parcel of land that costher P200,000. Kevin contributed P300,000 cash. The land has a quoted price of P360,000 on October1, 2021. What amount should be recorded in Pamu’s capital account upon formation of thepartnership assuming the use of bonus method? a. P150,000b. P198,000c. P200,000d. P360,000
- Marvin, Andrew and Arlean were partners with capital balances as of January 1, 2021 of P100,000, P 150,000 and P 200,000, respectively, sharing profits and losses on a 5:3:2 ratio. On July 1, 2021, Arlean withdraw from the partnership. The partners agreed that at the time of withdrawal, certain inventories had to be revalued at P 70,000 from its cost of P 50,000. For the sixth-month period ending June 30, 2008, the partnership generated a net income of P140,000. Further, partnership will pay Arlean P 195,000 for her interest. What is the capital balance of Marvin after the withdrawal of ArleanA, B and C were partners with capital balances on January 1, 2016, of P300,000, P200,000 and P100,000, respectively. On July 1, 2016, A retires from the partnership. On the date of retirement, the partnership net loss is P60,000 and the partners agreed that certain asset is to be revalued at P80,000 from its original cost of P50,000. The partners agreed further to pay A P225,000 in settlement of his interest. The remaining partners continue to operate under a new partnership. What is the total capital of the new partnership, after the retirement of A?UU,VV and WW were partners with capital balances on January 2, 2021 of P700,000, P840,000and 620,000 respectively. Their profit and loss ratio is 3:5:2. On August 1, 2021, UU retires form thepartnership. On the date of retirement, the partnership net loss is P480,000 and the partners agreedthat inventories are to be revalued at P370,000 from its original cost of P340,000. The partnersagreed further to pay UU P568,500 in settlement of his interest. Upon retirement of UU, which of thefollowing will result? a, Bonus to VV is P2,500b. Bonus from WW is P1,000c. Goodwill of UU is P3,500d. VVs capital after retirement of UU is P85,000 higher that WW
- On April 1, 2020, A, B and C formed a partnership by combining their separate business proprietorships. A contributed cash of P 200,000. B contributed property with a carrying amount of P144,000, original cost of P160,000, and a fair value of P320,000. The partnership accepted responsibility for the P140,000 mortgage attached to the property. C contributed equipment with a carrying amount of P120,000, original cost of P300,000 and fair market value of P220,000. The partnership agreement specifies that profits and losses are to be shared equally. Assuming capital is based on their profit and loss agreement, how much is the implied bonus?On July 1, 2020, X, Y and Z formed a partnership by combining their separate business proprietorships. X contributed cash of P 200,000. Y contributed property with a carrying amount of P144,000, original cost of P160,000. and a fair value of P320,000. The partnership accepted responsibility for the P140,000 mortgage attached to the property. Z contributed equipment with a carrying amount of P120,000, original cost of P300,000 and fair market value of P220,000. The partnership agreement specifies that profits and losses are to be shared equally. How much is the investment of Y?*Paco and Rabanne formed a partnership on January 1, 2019 with a profit and loss agreement of 4:2. Paco invested Cash of P500,000 and Equipment with cost of P200,000 while Rabanne invested Cash of P 650,000 and a parcel of land that had an original cost of P 1,580,000. The land had a market value of P 1,800,000 when Rabanne inherited it three years ago. Currently, the land is independently appraised at P 2,500,000. However, Rabanne insisted that the land be recorded at P 5,000,000. Under the full investment approach, how much will be the recorded capital of Rabanne?