try Prepare the journal entries for the following transactions: luly 1-Mr. Bon Hok withdraw P20,000 cash charge to share in profits. 2 - Mr. Ok made an additional contribution of P30,000 cash. 3 Mr. Meng bought goods on account from the partnership, P 10,000 4 The partnership borrowed P50,000 from Mr. Hok. 5 Mr. Meng fully paid its account to the partnership. 6. The partnership pays 50% of its borrowings to Mr. Hok. 7 Mr. Ok permanently withdraw P 20,000 cash from the prtnersip. 8. Assuming at the end of the accounting period, the partnership earns profit of P80,000 and lecided to distribute the profits to the partners

try Prepare the journal entries for the following transactions: luly 1-Mr. Bon Hok withdraw P20,000 cash charge to share in profits. 2 - Mr. Ok made an additional contribution of P30,000 cash. 3 Mr. Meng bought goods on account from the partnership, P 10,000 4 The partnership borrowed P50,000 from Mr. Hok. 5 Mr. Meng fully paid its account to the partnership. 6. The partnership pays 50% of its borrowings to Mr. Hok. 7 Mr. Ok permanently withdraw P 20,000 cash from the prtnersip. 8. Assuming at the end of the accounting period, the partnership earns profit of P80,000 and lecided to distribute the profits to the partners

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

9. Marty (M) retires from MNO partnership, an accounting firm. The partnership has the following balance sheet: Asset Cash Accounts rec. Land Total FMV AB $240,000 $240,000 $300,000 $0 Liab/Equity Capital, M Capital N $360,000 $60,000 Capital O $900,000 $300,000 Total The partnership pays Marty $150,000 a year for 2 years. a. What are the consequences to Marty in Year 17 FMV $300,000 $300,000 $300,000 AB $100,000 $100,000 $100,000 $900,000 $300,000
The following is the Balance Sheet of Mohammed and Hamed who share profits in the ratio of 5:4. Balance Sheet as at 31-12-2021 Liabilities Amount Assets (RO.) Amount (RO.) Sundry Creditors 30,000 Cash in Hand Capital Account Debtors Stock 90,000 Furniture 30,000 20,000 30,000 10,000 Plant and Machinery 30,000 Total 120,000 Total 120,000 On that date Marwan is admitted into the partnership on the following terms • That Marwan is to bring in OMR 30,000 as capital and OMR 10,000 as premium for goodwill for 1/5th share. • That the value of stock is reduced by 10% while plant & machinery is appreciated by 10%. • That furniture is devalued at OMR 8,500 • That a provision for doubtful debt is to be created on sundry debtors at 7.5% and OMR 150 is to be provided for electricity bill. • Investment worth OMR 5,000 (not mentioned in the balance sheet) is to be taken into account. • A creditor of OMR 300 is not likely to claim his money and is to be written off. Required: Record journal entries…
Terms of the partnership agreement: 1.1 The partners are entitled to a salary of R18 000 each per month. 1.2 Zozi and Sethu share profits in the ratio of 1:1 respectively. 2. Year-end adjustments: 2.1 An outstanding debt of R2 200 is irrecoverable and must be written off. The allowance for credit losses must be increased to R6 500. 2.2 An amount of R4 500 owed by a debtor was written off as irrecoverable during the year ended 29 February 20.1. The debtor has settled the amount previously written off in full on 25 February 20.2. This transaction is still to be recorded in the books of the business. 2.3 Depreciation for the year must still be provided as follows: Office equipment: 20% according to diminishing balance method. Vehicles: 15% according to straight-line method and have a R15 000 residual value. 2.4 Inventories on hand on 28 February 20.1: Merchandise R45 100 2.5 Only 65% of salaries were paid to partners during…
I need the adjusting entries with amounts for letters A-D. The capital is 301,000
Brown and Sue share the profits of 30% and 70%, respectively. After all the company partnership assets are sold, the general ledger account shows the balance statement below. Both partners are personally insolvent and unable to make deposits to the partnership firm. Prepare journal entries to summarize the activities of the firm's partnership, including the proper distribution of existing cash. Cash $2,000 Salary to be paid $500 to Brown Must be billed 1,500 Capital Brown 9,500 from Sue Liquidation loss 24,500 Sue Capital 18.000 28.000 28.000
n the year ended 31/12/2018 total income of Palestine co,20,000 if A partner received 5,000 annual salary and reaming divided equally between the two partners A and B so Finally the reamig profit should be allocated to partners will be 15,000 Select one: True False
A partnership has the following capital balances: Jeng, Capital P60,000 Pong, Capital P30,000 PJ, Capital P90,000 Profits and losses are split as follows: Jeng 20% Pong 30% PJ 50%. PJ wants to leave the partnership and is paid P100,000 from the business based on provisions in the articles of partnership. If the partnership uses the bonus method, what is the balance of Pong’s capital account after PJ withdraws? Indicate what letter is the answer a.) P24,000 b.) P27,000. c.) P33,000 d.) P36,000
The following account balances were taken from the books of Aztra, a sole proprietor before admitting Nica to form a partnership. Accounts Receivable Php 50,000 1,000 60,000 20,000 30,000 59,000 Allowance for bad debts Equipment Accum. Depreciation – Equipment Notes Payable Aztra, Capital Aztra admits Nica as a partner in the partnership with a total agreed capitalization of Php 200,000. Nica contributes cash that will give her 50% claim in the partnership. Aztra is to invest additional cash after the partnership's assets and liabilities are to be adjusted per agreement as follows: a. The realizable amount of accounts receivable is Php 45,000. b. The equipment is to be stated at its depreciated value of Php 34,000. c. Accrued interest on notes payable should be recognized, Php 1,000. Required: 1. Adjusting entries 2. Journal entries to record the investment of Aztra and Nica in the partnership books.
On December 31, 2014, LBM Partnership’s accounts show the following. Answer the following questions under the different scenarios. Partner Drawings Capital Lisa $23,000 $48,000 Bart 14,000 30,000 Maggie 10,000 25,000 Scenario1: Net income for the year is $30,000. Income is shared 60% to Lisa, 30% to Bart, and 10% to Maggie. How much is each partner’s share of the income? Lisa Bart Maggie Scenario 2: Net income was $60,000 for the year. Lisa and Bart are each given a $15,000 salary allowance. The remainder is shared equally. Prepare a schedule showing the division of net income. Lisa Bart Maggie Total Salary allowance Remaining income Total division of net income Scenario 3: Net income was $24,000 for the year. Each partner is given a 10% interest on beginning capital balances. Lisa is given a $10,000 salary allowance and $5,000 is…
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
bestion Sa Ahmed, a new partner, contributed $70,000 cash plus machines valued at $35,000 to the partnership. This transaction is recorded by the following joumal entry: OA Debit: Cash $70,000 and Machines $35,000%3B Credit: Ahmed Capital $105,000. O B. Debit: Assets $105,000; Credit: Partnership Capital $105,000. OC Debit: Cash $70,000 and Machines $35,00%3; Credit: Partnership Capital $105,000. O D. Debit: Ahmed Capital $105,000%3; Credit: Cash $70,000 and Machines $35,000.
Hh1. Account