1,400.(Ans.: Interest on Loan by X 2,400; Interest on Loan by YR 1,200;Case 1. Profit: X 6,960; Y 10,440; Case 2. Loss: X 240; YR 360;[Hint: Interest on Loan by partner is a charge against profit.]loan ofCase 3. Profit: X 560; Y ? 840; Case 4. Loss: X 2,000; Y R 3,000.)2021 wast and Ball are partners sharing the profits in the ratio of 2:3 with capitals of 1,20,000 and ? 60,000espectively. On 1st October, 2020, Bat and Ball gave loans of 2,40,000 and 1,20,000 respectively tote frm. Bat had allowed the firm to use his property for business for a monthly rent of 5,000. Lossaursngfor the year ended 31st March, 2021 before rent and interest amounted to 9,000. Show distribution of[Ans.: Share of Loss: Bat- 31,920; Ball-47,880.]profit/loss.THint: Interest on Loan by partner and Rent are charges against profit.]Akhil and Bimal are partners sharing profits in the ratio of 3:2. Akhil gave loan to the firm of 1,00,000 on1st. October, 2020. On the same date, the firm gave loan to Bimal of 1,00,000. They do not have antheagreement as to interest.Akhil had also given his personal property for firm's godown at a monthly rent of 5,000.Firm earns profit of 1,03,000 (before above adjustments) for the year ended 31st March, 2021. Show the[Ans.: 40,000 [R 1,03,000 – 7 3,000) (interest on Loan by Akhil)- 60,000 (rent)] will bedistributed in the ratio of 3:2. Akhil-24,000; Bimal- 16,000.]distribution of profit for the year.(Hint: In the absence of agreement, Akhil will get interest @ 6% p.a. on loan given by him. Interest will notbe charged on loan to Bimal by the firm. Also, rent will be paid to Akhil as per the agreement.]11. Nirmal and Pawan are partners sharing profits in the ratio of 3: 2. The firm had given loan to Pawan of75,00,000 on 1st April, 2020. Interest was to be charged @ 10% p.a. The firm took loan of 2,00,000 from Nirmalon 1st October, 2020. Before giving effect to the above, the firm incurred a loss of 10,000 for the yearended 31st March, 2021.tion Alc 34.000Determine the amount to be transferred to Profit and Loss Appropriation Account.hey

840; Case 4. Loss: X 2,000; Y 3,000.) charge against profit.] 9. Bat and Ball are partners sharing the profits in the ratio of 2:3 with capitals of 1,20,000 and ? 60,000 rnectively. On 1st October, 2020, Bat and Ball gave loans of 2,40,000 and ? 1,20,000 respectively to he firm. Bat had allowed the firm to use his property for business for a monthly rent of 5,000. Loss for the year ended 31st March, 2021 before rent and interest amounted to 9,000. Show distribution of profit/loss. (Hint: Interest on Loan by partner and Rent are charges against profit,) [Ans.: Share of Loss: Bat- 31,920; Ball- 47,880.] Akhil and Bimal are nartno

840; Case 4. Loss: X 2,000; Y 3,000.) charge against profit.] 9. Bat and Ball are partners sharing the profits in the ratio of 2:3 with capitals of 1,20,000 and ? 60,000 rnectively. On 1st October, 2020, Bat and Ball gave loans of 2,40,000 and ? 1,20,000 respectively to he firm. Bat had allowed the firm to use his property for business for a monthly rent of 5,000. Loss for the year ended 31st March, 2021 before rent and interest amounted to 9,000. Show distribution of profit/loss. (Hint: Interest on Loan by partner and Rent are charges against profit,) [Ans.: Share of Loss: Bat- 31,920; Ball- 47,880.] Akhil and Bimal are nartno

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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EXERCISE 8-10. Problem Solving 2: Gain or loss on realization of non-cash assets; capital deficiency absorption. Joshua, Daniel, and Martha were partners sharing profit and losses in the ratio of 1:2:1, respectively. On March 15, 2019, they decided to liquidate. Capital balances of Joshua, Daniel, and Martha were P215,000, P75,000, and P85,000, respectively. Liabilities amounting to P100,000 had yet to be settled. Total assets, inclusive of P35,000 cash, totaled P475,000. All non-cash assets were sold for only 30% of their book values. Liquidating expenses of P5,000 were also incurred. It was also determined that all partners, except Daniel, were solvent. REQUIRED: 1. How much was the gain or loss on non-cash asset realization? 2. How much cash should Martha infuse to satisfy the liquidation process of the partnership?
Charlie and Delta formed a partnership. Charlie invested cash worth P85,000 and a machine. On the other hand, Delta contributed cash worth P55,000 and an equipment which has a mortgage of P35.000 which Delta will pay personally The total capital after formation was P350,000. They also further agreed to reflect 55:45 ratio as to their capital balances respectively. No other investment or withdrawal occurred other than mentioned to reflect their capital ratio agreement. How much is the fair value of the machine?
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Case number 2 only. The given problem is the box (top part)
Please answer and show the solution. Thank you!
E5.
Kat, Mat and Pat are partners with capital balances of P 430,000, P 520,000 and P 470,000 respectively with profit and loss sharing ratio of 2:3:5 respectively. The firm owes Kat P 50,000. Upon liquidation, P 450,000 is available for distribution to the partners. How much cash will each partner receive?
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