Partnership : Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio. Allocation of profits: A partnership contract usually provides for the allocation of profit or losses amongst the partners. In the case of absence of allocation method, the partnership net income or losses are allocated equally amongst the partners. Requirement-1: To determine: The allocation of net income to partners in the absence of specified method

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Answer 1

Question

Chapter 12, Problem 5E

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Allocation of profits: A partnership contract usually provides for the allocation of profit or losses amongst the partners. In the case of absence of allocation method, the partnership net income or losses are allocated equally amongst the partners.

Requirement-1:

To determine: The allocation of net income to partners in the absence of specified method

To determine

Requirement-2:

To determine: The allocation of net income in the ratio of their initial capital investment

To determine

Requirement-3:

To determine: The allocation of net income paying salaries, interest on capital and balance net income equally

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Creditors Sales Revenue 22,500 1,143,700 Land at cost 550,000 Building at cost 570,000 Furniture and fittings at cost 85,000 Bank 14,000 Provision for Depreciation Buildings 120,000 Furniture and fittings 15,000 Discounts 5,700 5,800 Retained Earnings at 1 Oct 2022 14,800 Provision for bad debts 2,200 Goodwill 400,000 Cash 16,400 Inventory at 1 Oct 2022 48,000 Rent Received(from Breezy Ltd) 27,000 Rent 7,900 Wages and Salaries 122,000 Insurance 16,300 Carriage Inwards 2,300 Returns 8,500 12,000 Commission received 5,200 8% Mortgage 100,000 Other Operating Expenses 2,500 Debtors 45,000 Purchases 340,000 Debenture Interest 1,200 Mortgage Interest 4,600 Bad debt 4,700 7% Debentures 150,000 4% Preference Shares @ $0.5 130,000 Ordinary Shares @ $0.75 375,000 General Reserves 127,000 Interim ordinary dividends paid 4,500 2,249,400 2,249,400

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Answer 2

Question

Chapter 12, Problem 5E

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Allocation of profits: A partnership contract usually provides for the allocation of profit or losses amongst the partners. In the case of absence of allocation method, the partnership net income or losses are allocated equally amongst the partners.

Requirement-1:

To determine: The allocation of net income to partners in the absence of specified method

To determine

Requirement-2:

To determine: The allocation of net income in the ratio of their initial capital investment

To determine

Requirement-3:

To determine: The allocation of net income paying salaries, interest on capital and balance net income equally

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 12, Problem 5E

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Allocation of profits: A partnership contract usually provides for the allocation of profit or losses amongst the partners. In the case of absence of allocation method, the partnership net income or losses are allocated equally amongst the partners.

Requirement-1:

To determine: The allocation of net income to partners in the absence of specified method

To determine

Requirement-2:

To determine: The allocation of net income in the ratio of their initial capital investment

To determine

Requirement-3:

To determine: The allocation of net income paying salaries, interest on capital and balance net income equally

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 12, Problem 5E

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Allocation of profits: A partnership contract usually provides for the allocation of profit or losses amongst the partners. In the case of absence of allocation method, the partnership net income or losses are allocated equally amongst the partners.

Requirement-1:

To determine: The allocation of net income to partners in the absence of specified method

To determine

Requirement-2:

To determine: The allocation of net income in the ratio of their initial capital investment

To determine

Requirement-3:

To determine: The allocation of net income paying salaries, interest on capital and balance net income equally

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 12, Problem 5E

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Allocation of profits: A partnership contract usually provides for the allocation of profit or losses amongst the partners. In the case of absence of allocation method, the partnership net income or losses are allocated equally amongst the partners.

Requirement-1:

To determine: The allocation of net income to partners in the absence of specified method

To determine

Requirement-2:

To determine: The allocation of net income in the ratio of their initial capital investment

To determine

Requirement-3:

To determine: The allocation of net income paying salaries, interest on capital and balance net income equally

Answer 6

Chapter 12, Problem 5E

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Allocation of profits: A partnership contract usually provides for the allocation of profit or losses amongst the partners. In the case of absence of allocation method, the partnership net income or losses are allocated equally amongst the partners.

Requirement-1:

To determine: The allocation of net income to partners in the absence of specified method

Answer 7

Chapter 12, Problem 5E

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Allocation of profits: A partnership contract usually provides for the allocation of profit or losses amongst the partners. In the case of absence of allocation method, the partnership net income or losses are allocated equally amongst the partners.

Requirement-1:

To determine: The allocation of net income to partners in the absence of specified method

Answer 8

To determine

Requirement-2:

To determine: The allocation of net income in the ratio of their initial capital investment

Answer 9

To determine

Requirement-2:

To determine: The allocation of net income in the ratio of their initial capital investment

Answer 10

To determine

Requirement-3:

To determine: The allocation of net income paying salaries, interest on capital and balance net income equally

Answer 11

To determine

Requirement-3:

To determine: The allocation of net income paying salaries, interest on capital and balance net income equally

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 12 - Prob. 1DQ Ch. 12 - Prob. 2DQ Ch. 12 - Prob. 3DQ Ch. 12 - Prob. 4DQ Ch. 12 - Prob. 5DQ Ch. 12 - Prob. 6DQ Ch. 12 - Prob. 7DQ Ch. 12 - Prob. 8DQ Ch. 12 - Prob. 9DQ Ch. 12 - Prob. 10DQ

Requirement-2: To determine: The allocation of net income in the ratio of their initial capital investment

Requirement-3: To determine: The allocation of net income paying salaries, interest on capital and balance net income equally

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Chapter 12 Solutions

Requirement-2:

To determine: The allocation of net income in the ratio of their initial capital investment

Requirement-3:

To determine: The allocation of net income paying salaries, interest on capital and balance net income equally