Use the following information for numbers 24 to 28. A, B and C formed a partnership on January 2, 2018 with contributions of P100,000, P200,000 and P300,000, respectively. The partners agreed on a capital ratio of 1:2:3 upon formation and P/L ratio of 3:3:4, respectively. The partnership reported a net loss of P20,000 for 2018. Also at the end of 2018, C has decided to withdraw from the partnership and was paid P250,000 cash. On April 1, 2019, D was admitted as a partner with an investment of P160,000. He is given a share of capital of 40% and in profits 30%. The old partners have agreed to retain their old ratio over the remaining profit and loss share of 70%. The partnership reported a net profit of P21,000 for 2019, one-third of which is deemed earned as of end of the year's first quarter's operation. Determine the capital balances of each partner as of December 31, 2018: 24. Partner A. 25. Partner B. Determine the capital balances of each partner as of December 31, 2019: 26. Partner A. 27. Partner B. 28. Partner C.

Use the following information for numbers 24 to 28. A, B and C formed a partnership on January 2, 2018 with contributions of P100,000, P200,000 and P300,000, respectively. The partners agreed on a capital ratio of 1:2:3 upon formation and P/L ratio of 3:3:4, respectively. The partnership reported a net loss of P20,000 for 2018. Also at the end of 2018, C has decided to withdraw from the partnership and was paid P250,000 cash. On April 1, 2019, D was admitted as a partner with an investment of P160,000. He is given a share of capital of 40% and in profits 30%. The old partners have agreed to retain their old ratio over the remaining profit and loss share of 70%. The partnership reported a net profit of P21,000 for 2019, one-third of which is deemed earned as of end of the year's first quarter's operation. Determine the capital balances of each partner as of December 31, 2018: 24. Partner A. 25. Partner B. Determine the capital balances of each partner as of December 31, 2019: 26. Partner A. 27. Partner B. 28. Partner C.

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

A. B and C are partners with average capital balances during 2020 of P945,000, P477,300 and P324,700, respectively. The partners receive 10% interest on their average capital balances, salaries of P 244,650 to A and P 165,250 to C, any residual profit or loss is divided in the ratio 3:2:1. In 2020, the partnership had a net loss of P251,248 before the interest and salaries to partners. What is the change in the capital balance of
The partnership of Grant, Candice, and Panabaker is suffering cash shortage during 2020. Because of that reason, Grant loaned the partnership P60,000 cash last July 2020. The partnership suffered net loss during 2020. The capital balances of the partners after distribution of net loss are P240,000, P310,000, and P230,000, respectively. They share profits and losses in the ratio of 2:3:5, respectively.Due to disagreement, Grant wanted out of the partnership. Before withdrawal, the value of the land increased from P200,000 to P300,000. Grant will be paid P360,000 by the partnership for his total interest in the partnership. What is the capital balance of Candice after Grant’s withdrawal?
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
A, B and C decided to form a partnership on March 1, 2022. They agree that A will contribute office equipment with a total fair value of P40,000; B will contribute delivery equipment with a fair value of P80,000; and C will contribute cash. If C wants a one- third interest in the capital and profits, he should contribute the cash amounting to:
On May 1, 2016, Peppa and Piggy formed a partnership and agreed to share profits and losses in the ration of 3:7, respectively. Peppa contributed a parcel of land that cost P10,000. Piggy contributed P40,000 cash. The land was sold for P18,000 on May 1, 2016, immediately after formation of the partnership. What amount should be recorded in Peppa’s capital account on formation of the partnership?
Mallari and Chua are partners who share profits and losses in a ratio of 3:2, respectively. They have the following capital balances on September 30, 2018. Mallari, Capital P250,000 Cr. Chua, Capital P500,000 Cr. The partners agreed to admit Palatino to the partnership. Calculate the capital balances of each partner after the admission of Palatino, assuming that bonuses are recorded when appropriate for each of the following assumptions: Palatino invested P250,000 for a 20% interest in the partnership. Castro and Falceso are partners who share profits and losses in a ratio of 2:3, respectively, and have the following capital balances on September 30, 2019: Castro, Capital P100,000 Cr. Falceso, Capital P150,000 Cr. The partners agreed to admit Garachico to the partnership. Calculate the capital balances of each partner after the admission of Garachico, assuming that bonuses are recorded when appropriate for each of the following assumptions: Garachico…
On January 1, 2021, Hinata, Tsukki and Kageyama formed Haikyu Partnership with a total agreed capitalization of P1,000,000. The capital interest ratio of the Haikyu Partnership is 5:1:4 while the profit or loss ratio is 6:2:2, respectively for Hinata, Tsukki, and Kageyama. During 2021, Hinata and Tsukki made additional investments of P200,000 and P500,000, respectively. At the end of 2021, Hinata and Kageyama made drawings of P300,000 and P100,000, respectively. On December 31, 2021, the capital balance of Kageyama is reported at P250,000. How much is the total equity at the end of the year?
Deadshot, Harley Quinn, and El Diablo are partners sharing profits and losses in the ratio of 5:3:2. At the beginning of the year 2018, they admit Captain Boomerang, who is to invest sufficient cash to give one-third interest in the capital and earnings of the partnership. The balance sheet of the partnership before the admission of Captain Boomerang is presented below: Cash 4,500,000 10,125,000 3,375,000 Liabilities 2,250,000 1,350,000 7,875,000 4,500,000 2,025,000 18,000,000 Receivables Deadshot, loan Deadshot, capital Harley Quinn, capital El Diablo, capital Inventories Total 18,000,000 The partners agree to revalue the inventories at its net realizable value of P2,250,000 and an allowance for doubtful accounts of P1,125,000 is to be set up by the partnership against the receivables. The old partners further agree to bring their capital balances into agreement with their interest in the earnings. 4. How much cash must be invested by Captain Boomerang to acquire one-third interest in…
On January 1, 2021, Kobe, Lebron, and Michael formed a partnership with respective capital contribution of P2,000,000, P5,000,000, and P3,000,000. The articles of co-partnership provides that profit or loss shall be distributed accordingly: a. 20% interest on original capital contribution. b. P30,000 monthly salary for Kobe and P50,000 monthly salary for Michael. c. The remainder shall be distributed on the basis of original capital contribution ratio. On December 31, 2021, Kobe and Lebron made withdrawals of P500,000 and P1,000,000, respectively. the statement of financial position of the partnership shows that Lebron’s capital on December 31, 2031 is P6,500,000. What is the capital balance of Kobe on December 31, 2021
On February 1, 2022, AA and BB formed a partnership and agreed to share profits in the ratio of 4:6, respectively. AA contributed a laptop which cost him P68,000 and was estimated to have a value of P50,000 on date of formation. BB contributed cash of P250,000. How much is the capital account of BB upon formation of the partnership?
On July 01, 2021, A, B, and C formed a business partnership to be operated as an advertising agency. A contributed P100,000 cash while B shall have capital credit of P60,000 upon receipt of bonus of P10,000 from A based on the provision in Articles of Co-Partnership. The terms of the agreement provide that A and B shall have a combined 40% capital interest in the newly formed partnership. What is the capital contribution made by C to the partnership?
What is the correct answer to the question?