below: Cash P96,000 Accounts Payable P178,000 Accounts Receivable 184,000 Annie Capital 266,000 Inventory 330,000 Betty Capital 216,000 Equipment-net 50,000 Total P660,000 Total P660,000 The terms of the agreement are that the assets and liabilities are to be restated as follows: • An allowance for possible uncollectible of P9,000 is established.

below: Cash P96,000 Accounts Payable P178,000 Accounts Receivable 184,000 Annie Capital 266,000 Inventory 330,000 Betty Capital 216,000 Equipment-net 50,000 Total P660,000 Total P660,000 The terms of the agreement are that the assets and liabilities are to be restated as follows: • An allowance for possible uncollectible of P9,000 is established.

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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Ahmed and Wahid are partners sharing profits and losses in the ratio of 3:1. Their Balance sheet as on March 31, 2021 is as follows. Liabilities Amount (RO) Assets Amount (RO) Creditors 315000 Cash 26250 Bills Payable 105000 Debtors 367500 General Reserve 210000 Stock 157500 Сapital: Plant 131250 Ahmed 420000 Buildings 525000 Wahid 210000 Profit & Loss Ac 52500 Bank Overdraft 315000 | Equipment 315000 Total 1575000 Total 1575000 On April 01, 2021, they agreed to admit Khalid into the firm for 1/5th Share of future profits on the following terms: a) Building is revalued at 630000 b) Stock is revalued at 112875 c) Goodwill is raised at 210000 d) Provision for bad debts is to be made at 5% e) Khalid has to bring in a Capital 262500 f) Khalid was unable to bring the amount of goodwill Pass Journal Entries and Prepare Revaluation Account, Capital Accounts and the Balance Sheet of the reconstituted firm.
Two partners Tom and Jerry have the following details of their accounts for the year ended 31 December 2021. Capital accounts: Current accounts: Salaries: Drawings: Profit sharing ratio: Net profit before appropriation £100,000 £ Tom 8,000 3,000cr 10,000 25,000 3 £ Jerry 6,000 1,000 dr 30,000 30,000 1 Required: Prepare the relevant income statement and statement of financial position extracts.
Ahmed and Wahid are partners sharing profits and losses in the ratio of 3:1. Their Balance sheet as on March 31, 2021 is as follows. Liabilities Amount (RO) Assets Amount (RO) Creditors 210000 Cash 17500 Bills Payable 70000 Debtors 245000 General Reserve 140000 Stock 105000 0 Plant 280000 Buildings Capital: 87500 Ahmed 350000 Wahid 140000 Profit & Loss Ac 35000 Bank Overdraft 210000 Equipment 210000 Total 1050000 Total 1050000 On April 01, 2021, they agreed to admit Khalid into the firm for 1/5th Share of future profits on the following terms: a) Building is revalued at 420000 b) Stock is revalued at 75250 c) Goodwill is raised at 140000 d) Provision for bad debts is to be made at 5% e) Khalid has to bring in a Capital 175000 f) Khalid was unable to bring the amount of goodwill Pass Journal Entries and Prepare Revaluation Account, Capital Accounts and the Balance Sheet of the reconstituted firm.
The following information relates to partner for the year ended 29 February 2020: Current account credit balance on 29 February 2020 20 000 Profit share 50 000 Salaries 180 000 Interest on capital 24 000 Drawings 220 000 Interest on drawings 2 000 What is the balance in the Current account of the partner on 01 March 2019? OA. R12 000 DR. B. R116 00O DR OC. R52 000 CR D. R12 000 CR S Type here to search
On December 31, 2020, the accounting records of the Friends Partnership included the following information: Raflyn, drawing (debit balance) P 120,000 Jane, drawing (debit balance) Pablo, loan Raflyn, capital Jane, capital Pablo, capital 45,000 150,000 615,000 502,500 540,000 Total assets amounted to P2,392,500, including P262,500 cash, and liabilities totaled P750,000. The partnership was liquidated on December 31, 2020, and Jane received P416,250 cash pursuant to the liquidation. Raflyn, Jane, and Pablo share net income and losses in a 5:3:2 ratio, respectively. Compute for the total loss on realization.
Mr. Suner, Mr. Behman and Mr. Meuthosam are partners, who share profit in the ratio of 2:2:1. Following is the balance sheet as on March 31, 2020. Balance Sheet of Mr. Suneer, Mr. Rehman and Mr. Mouthosam as on March 31, 2020 Liabilities Amount (OMR) Assets Amount (OMR) Mr. Suneer's capital 5,000 Cash and Bank 2,500 Mr. Rehman's Capital 2,000 Stock 2,500 Mr. Mouthosam's capital 1,000 Furniture 1,000 Reserve fund 2,500 2,000 Debtors Creditors 2,000 Plant and 4,500 machinery 12,500 12,500 They decided to dissolve the business. The following amounts were realized. There was an unrecorded asset of Rs.350, which was taken over by Mr. Rehman at Rs.150. How much amount of unrecorded assets are recorded in the realization account? OMA 200 None of the listed choices OMR I50 OMA150 Creditors paid 2% less. How much amount of creditors are recorded in the credit side of realization account?
Lalitha, Jothi and Kanaga were partners of a firm sharing profit and losses in the ratio of 3:2:3. Set out below was their balance sheet as onMarch 31, 2021. Liabilities & Equity Bills Payable Sundry Creditors Outstanding Expenses Capital: RO Assets RO 80000 Cash in Hand 156250 Cash at Bank 1250 Debtors O Stock 1875 511250 222500 278750 Lalitha 500000 Furniture 43750 Jothi 312500 Plant and Machinery 121875 Kanaga 375000 Building 300000 Profits & Loss A/c 55000 1480000 1480000 Lalitha retired from the partnership on April 01, 2021 under the following terms: The assets are to be valued as under: Stock 250000 Furniture 37500 Plant & Machinery Building 112500 250000 A provision for doubtful debt to be created at 10625 Goodwill of the firm was to be valued at 75000 The gaining ratio is 2:3. Lalitha was to be paid off immediately. Record the necessary journal entries, prepare Revaluation Account, Capital Accounts and Balance Sheet of the reconstituted partnership.
Lawler and Riello formed a partnership on March 15, 2024. The partners agreed to contribute equal amounts of capital. Lawler contributed her sole proprietorship's assets and liabilities (credit balances in parentheses) as follows: X Data table Lawler's Business Current Market Value its. Select the explanation on the last line of the journal entry table.) Accounts Receivable 10,600 Merchandise Inventory 29,000 Prepaid Expenses 2,800 Credit 26,000 Store Equipment, Net Accounts Payable (25,000) Done More info On March 15, Riello contributed cash in an amount equal to the current market value of Lawler's partnership capital. The partners decided that Lawler will earn 60% of partnership profits because she will manage the business. Riello agreed to accept 40% of the profits. During the period ended December 31, the partnership earned net income of $70,000. Lawler's withdrawals were $36,000, and Riello's withdrawings totaled $26,000. Print Done Requirement 1. Journalize the partners' initial…
Orion, Leanna and Aric were partners sharing profits and losses in the proportion of 2:2:1, following is their Balance Sheet as on 31st March, 2008. Balance Sheet as on 31 March, 2008 Assets Liabilities Capital Accounts: Orion Leanna Aric General Reserve Creditors Orion's Loan A/c Bills payable Amount $ Machinery 30,000 Stock 10,000 Debtors 10,000 Loss: R.D.D. 3,000 Investment 20,000 Profit and Loss A/c 4,000 Bank 7,000 84,000 27,500 1,500 2) Dissolution expenses were $ 1,500. 3) Goodwill of the firm realised $ 12,000 Pass the necessary Journal entries in the books of the firm. Amount $ 25,000 10,000 26,000 12,000 9,000 2,000 84,000 On the above date the partners decided to dissolve the firm: 1) Assets were realised: Machinery $ 22,500, Stock $9,000, Investment $ 10,500, Debtors $ 22,500.
On the December 31, 2020, the Statement of Financial Position of LOVE Partnership shows the following data with profit or loss sharing of 5:3:2.CashP10,000,000Noncash Asset40,000,000Total LiabilitiesP20,000,000Ona10,000,000Vina15,000,000Ena5,000,000On January 01, 2021, Lina is admitted to the new partnership named LOVE by investing P20,000,000 for 50% capital interest in the new partnership. What is the new capital balance of Ena after Lina’s admission in LOVE Partnership?
Finch, Plover, and Oriole are partners sharing profits and losses 50/20/30 respectively. Their balance sheet is below: Cash $180,000 Payables to Creditors $240,000 Receivable from Finch 40,000 Payable to Plover 50,000 Property & Equipment 500,000 Finch, Capital 100,000 Plover, Capital 180,000 Oriole, Capital 150,000 $720,000 $720, 000 Prepare a Cash - Predistribution Schedule, assuming $ 30,000 of liquidation expenses.
5. A. Montgomery, E. Fields and H. Marin were partners and showled the following account balances as of December 31, 2022: Cash Account Equipment Accumulated Amortization - Equipment Accounts Payable Balance $13,000 $152,000 $89,000 $7,000 Account Notes Payable A Montgomery, Capital E. Fields, Capital H. Marin, Capital Prepare the entry to distribute the remaining cash to the partners. Balance $12,000 $31,000 $14,000 $12,000