After operating for five years, the books of the partnership of Lopez and Mendez showed the following balances: Net Assets 130,000 85,000 Lopez, Capital Mendez, Capital 45,000 If liquidation takes place at this point and the net assets are realized at book value, the partners are entitled to: Lopez to receive P97,500 and Mendez to receive P32,500 Lopez to receive P90,000 and Mendez to receive P40,000 Lopez to receive P85,000 and Mendez to receive P45,000 а. b. C.
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- The accounts of the partnership of R, S and T at the end of its fiscal year on November 30, 2021 are as follows:Cash 103,750 Loan from S 20,000Other Non cash assets 707,500 R, Capital (30%) 266,250Loan to R 15,000 S, Capital (50%) 136,250Liabilities 262,500 T, Capital (20%) 141,250S received P50,000 in settlement of his equity. 13. Which of the following statements is incorrect?a. Total amount distributed to partners is P336,250.b. Total amount paid to creditors is P262,500.c. Total amount realized from the non-cash assets is P598,750.d. R received an amount equal to P187,500 Choose your answer based on the choices only and show solutions.The accounts of the partnership of R, S and T at the end of its fiscal year on November 30, 2021 are as follows:Cash 103,750 Loan from S 20,000 Other Non cash assets 707,500 R, Capital (30%) 266,250Loan to R 15,000 S, Capital (50%) 136,250Liabilities 262,500 T, Capital (20%) 141,250S received P50,000 in settlement of his equity. 13. Which of the following statements is incorrect? a. Total amount distributed to partners is P336,250. b. Total amount paid to creditors is P262,500. c. Total amount realized from the non-cash assets is P598,750. d. R received an amount equal to P187,50010. On October 1, A and B pooled their assets to form a Partnership, with the firm to take over the business assets and assume liabilities. Partners capitals are to be based on net assets transferred after the following adjustments. The partners agreed to the following adjustments: A’s inventory is to be increased by P15,000, while B’s inventory has a current fair market value of P100,000 and an agreed value of P110,000. B’s unadjusted inventory amounted to P90,000. Machinery and equipment are over-depreciated by P5,000 and P8,000 for A and B, respectively. Furnitures and fixtures for partner A has a current fair market value of P60,000 and an agreed value of P50,000. Furnitures and fixtures is carried at its cost amounting to P100,000 with accumulated depreciation of P45,000. Accrued rent income of P10,000 for A, and accrued salaries of P5,000 for B should be recognized on their respective books. The individual trial balances on October 1, before adjustments, follow: DESCRIPTION…
- The accounts of the partnership of Ace, Vergel, and De Dios at the end of its fiscal year on June 30, 2021 are as follows: Cash 75,000 Liabilities 225,000 Non-cash assets 625,000 Loan Payable to De Dios 25,000 Receivable from Vergel 25, 000 Ace, Capital (30%) 250,000 Vergel, Capital (50%) 150,000 De Dios, Capital (20%) 75,000 Total 725,000 Total 725,000 The partners decided to liquidate the business and the liquidation took place in several months. During the first month, non-cash assets with book value of 425,000 were sold for 375,000. The partners withheld 75,000 for contingencies Payment of liabilities during the first month amounted only to 175,000 16. How much should have Ace received in the first month of the partnership liquidation?…1. After operating for five years, the books of the partnership of Lopez and Mendez showed the following balances: Net Assets ₱130,000 Lopez, Capital 85,000 Mendez, Capital 45,000 If liquidation takes place at this point and net assets are realized at book value, how much shall Lopez receive?Capital balances of partners Q,R, S are the following before liquidation: P87,000, P95,500, P106,250 respectively. The partnership has a loan from partner Q in the amount of P8,000; loan to partner R in the amount of P4,500; advances to partner S in the amount of P6,500. The partners’ profit and loss ratio is 25:40:35 respectively. If in the first installment the total cash paid to partners is P57,000, how much did partner S receive?
- After operating for seven years, the books of the partnership of Kobe and Gasol showed the following balances: Net assets - P 169.000; Kobe, Capital - P 110,500: Gasol, Capital - P 58,500. If liquidation takes place at this point, and the net assets are at book value, how much would Kobe receive?On March 1, 2020, JM and KK formed a partnership with each contributing the following assets (see attached image) 1. The building is subject to mortgage loan of P800,000, which is to be assumed by the partnership agreement provides that JM and KK share profits and losses 30% and 70%, respectively. On March 1, 2020 the balance in KK's capital account should be: A. 3,700,000 C. 2,900,000B. 3,045,000 D. 2,485,000 2. Assume that the mortgage loan is not assumed by the partnership and the partners agree to withdraw or contribute additional cash to make their capital balances agree with their profit and loss ratio. On March 1, how much cash should be invested/(withdrawn) by KK? A. (1,215,000) C. (655,000)B. (415,000) D. 655,000On January 1, 2023, AA and BB formed AB partnership with a total agreed capital of P5,000,000 and a capital interest ratio of 70:30. The following were ascertained during the year as to distribution of profits and losses: • AA will receive quarterly salaries of P100,000 5% interest on initial capital will be provided Any remainder will be shared by their capital contribution ratio At the end of the year, the partnership had a P500,000 credit balance in its income summary account. How much is the share of AA in the partnership income (loss)?
- X, Y, and Z are partners sharing profits and losses in the ratio of 5:3:2. During the year, their investments and withdrawals are as follows: Investment of X, Y, and Z for P200,000, P175,000 and P375,000 respectively. Withdrawals of X, Y, and Z amounting to P125,000, P62500 and P62,500 respectively. On December 31, 2021, the partners decided to liquidate their business. After exhausting partnership assets, liabilities of P125,000 remain unpaid. X is personally insolvent. The gain or loss on realization is:For the year 2021, the partnership of AMMAR and BANU realized a net profit of P240,000. The capital accounts of the partners show the following postings: Jan. 1 May 1 July 1 Aug. 1 Oct. 1 AMMAR Debit Credit Debit Credit 20,000 10,000 120,000 BANU 10,000 10,000 5,000 80,000 20,000 Question 5 If the profits are to be divided based on average capital, how much will be the share of AMMAR?9. On October 1, A and B pooled their assets to form a Partnership, with the firm to take over the business assets and assume liabilities. Partners capitals are to be based on net assets transferred after the following adjustments: The partners agreed to the following adjustments: a. A's inventory is to be increased by P15,000, while B's inventory has a current fair market value of P100,000 and an agreed value of P110,000. B's unadjusted inventory amounted to P90,000. b. Machinery and equipment are over-depreciated by P5,000 and P8,000 for A and B, respectively. c. Furnitures and fixtures for partner A has a current fair market value of P60,000 and an agreed value P50,000. Furnitures and fixtures is carried at its cost amounting to P100,000 with accumulated depreciation of P45,000. d. Accrued rent income of P10,000 for A, and accrued salaries of P5,000 for B should be recognized on their respective books. The individual trial balances on October 1, before adjustments, follow:…