33. Elmo, Flor, and Gener are partnersdividing profits and losses in theratio of 5:3:2, respectively whosecapital balances as at the beginningof the year were P60,000, P40,000,and P30,000, respectively. Sevenmonths later, Gener retired. Theprofit for the year was estimated at48,000 (realized uniformlythroughout the year). On the dateof the retirement, the drawingaccount of Gener showed a debitbalance of 1,500. Also, thepartnership had an unpaid loan toGener in the amount of 5,000.How much is the equity of Gener inthe partnership on the date of theretirement?а. 31,200b. 32,100с. 39,100d. 43,100 8. Villon invested 600,000 for a 30%interest in a partnership in which theother partners have capital totaling1,000,000 before admitting Villion.After distribution of the bonus, what isVillion's capital balance?A. 720,000В. 600,000C. 480,000D. 300,0009. S. Almeda enters into a partnership bycontributing the following: Cash,2,000; Accounts Receivable, 400; Land24,000 cost, 40,000 fair market value;and accounts payable, 1,600. Whatwill be the initial amount recorded inAlmeda's capital account?A. 24,800В. 42,400С. 2,000D. 40,800

Partnership is the form of business organization where two or more individual come together to run…

33. Elmo, Flor, and Gener are partners dividing profits and losses in the ratio of 5:3:2, respectively whose capital balances as at the beginning of the year were P60,000, P40,000, and P30,000, respectively. Seven months later, Gener retired. The profit for the year was estimated at 48,000 (realized uniformly throughout the year). On the date of the retirement, the drawing account of Gener showed a debit balance of 1,500. Also, the partnership had an unpaid loan to Gener in the amount of 5,000.

33. Elmo, Flor, and Gener are partners dividing profits and losses in the ratio of 5:3:2, respectively whose capital balances as at the beginning of the year were P60,000, P40,000, and P30,000, respectively. Seven months later, Gener retired. The profit for the year was estimated at 48,000 (realized uniformly throughout the year). On the date of the retirement, the drawing account of Gener showed a debit balance of 1,500. Also, the partnership had an unpaid loan to Gener in the amount of 5,000.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PB: The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a...

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The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
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