He and She formed a partnership and to share in the profit or loss equally. She contributed building with a cost of P1,500,000, accumulated depreciation of P50,000 and fair value of P2,000,000. The building has a mortgage payable amounted to P250,000 which was not assumed by the partnership. How much should be credited to She, Capital account?
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- A and B formed a partnership. A contributed cash of P50,000 and equipment with a cost of P40,000, accumulated depreciation of P15,000 and fair value of P30,000. The partnership assumed a liability associated to the equipment amounting to P10,000. How much should be credited to A, Capital account?James joined a partnership by contributing the following: cash, P20,000;accounts receivable, P4,000; land, P240,000 fair value; and accounts payable, P16,000. What will be the initial amount recorded in James’ capital account? Give the entry to record the investment of JamesAL and DRIX decided to form a partnership. AL contributed P200,000 cash, equipment with a historical cost of P250,000 and fair value of P225,000, furniture with a historical cost of P150,000 and a fair value of P75,000 and P400,000 worth of parcel of land with a mortgage of P100,000. The partnership decided to assume the liability. Required: Answer the following 1. What is the capital balance of AL 2. Assuming DRIX will invest cash equivalent to AL’s net investment, how much is the capital balance of DRIX? 3. Assuming DRIX will invest cash equivalent to 20% of total partnership capital, how much is the capital balance of DRIX? 4. Using the assumption in number 3, how much is the total asset of the partnership after the contribution of AL and DRIX?
- Jane and Kathy are joining their separate business to form a partnership. Cash and non-cash assets are to be contributed for a total capital of P300,000. The non-cash assets are to be contributed and liabilities to be assumed are as follows: Jane Kathy Book Value Fair Value Book Value Fair Value Receivable Inventories Equipment Payable P 22,500 22,500 37,500 11,250 P 22,500 33,750 30,000 11,250 P 60,000 67,500 7,500 P67,500 71,250 7,500 The partner's capital accounts are to be equal after all contributions of assets and assumptions of liabilities. Determine the total assets of the partnership.Jake desires to invest P 200,000 for X capital and profit and loss interest in the partnership of Kim and Lim, who at that time had capital balances of P 200,000 and P300,000, respectively. Profit and loss ratio of the partners before the admission was 6:4. If a positive asset revaluation is to be recorded, what are the capital balances of Kim, Lim and Jake? Kim Lim JakeTaylor and Tanner formed a partnership. Taylor contributed $50,000 in cash. Tanner contributed land and buildings he purchased for $50,000 some time ago. His tax basis in the property is now $30,000, although it was recently appraised for $70,000. There is a $15,000 mortgage attached to the building that the partnership will assume. What is the amount of Tanner’s capital account after his contribution? a. $50,000 b. $30,000 c. $35,000 d. $55,000
- 9. Marites, Marilyn and Melody formed the Tres Marias partnership with the following contributions: Marites - cash P50,000; Marilyn – machines with fair value of P40,000 and book value of P50,000; Melody enough cash and an equipment which is mortgaged at P20,000. If Marites, Marilyn and Melody must have interest in capital and profits and losses in the ratio of 5:4:3, respectively, how much is the total assets after partnership formation? * P140,000 P130,000 P120,000 P100,000 answer not given How much should be Kon1. On September 1, 20X2, Tanya, Cecille, and Marie formed a partnership by combining their separate business proprietorships. Tanya contributed cash of P50,000. Cecille contributed property with P48,000 carrying amount, P56,000 original cost, and P45,000 fair value. The said property has an attached mortgage of P10,000, which will be assumed by the partnership. Marie Contributed a piece of equipment with P50,000 carrying amount, P85,000 original cost, and P45,000 fair value. It was stated in the Articles of Partnership that profits and losses are to be shared equally but is silent regarding capital contributions. Who among the partners has the smallest capital contribution? Justify the answer in no more than five (5) sentences. 2. On July 1, 20X2, Cua, Wicas, and Suico organized a partnership. Wicas contributed cash amounting to P600,000 and Suico contributed cash of P300,000 and machinery with a carrying amount of P250,000, the historical cost of P600,000, and market value of…1.On September 1, 20X2, Tanya, Cecille, and Marie formed a partnership by combining their separate business proprietorships. Tanya contributed cash of P50,000. Cecille contributed property with P48,000 carrying amount, P56,000 original cost, and P45,000 fair value. The said property has an attached mortgage of P10,000, which will be assumed by the partnership. Marie Contributed a piece of equipment with P50,000 carrying amount, P85,000 original cost, and P45,000 fair value. It was stated in the Articles of Partnership that profits and losses are to be shared equally but is silent regarding capital contributions. Who among the partners has the smallest capital contribution? Justify your answer in no more than five (5) sentences.2. On July 1, 20X2, Cua, Wicas, and Suico organized a partnership. Wicas contributed cash amounting to P600,000 and Cua contributed cash of P300,000 and machinery with a carrying amount of P250,000, the historical cost of P600,000, and market value of P475,000.…
- 1. Mr. A. Mr. B and Mr. C agreed to form a partnership. Mr. A will contribute cash in the amount of P100,000; Mr. B will contribute land which originally cost P 500,000 with a fair Market value of P 1,000 and mortgage payable in the amount of P 200,000; and Mr. C contributed a brand new equipment amounting to P 300,000. Based on the following contributions. The total Partner's Equity is A. P 700.000 B. P 1.200.000 C. P1.600.000 D. P 1.400.000 2. A decrease in the capital of one or more partners with a corresponding increase in the capital of another(s), without cash being involved, is a transfer of interest called A. asset revaluation B. bonus C. appraisal D. goodwillRequired: 3. Prepare journal entry to record Pedro’s admission. 4. During the first year of operations, the partnership earned P650,000. After Pedro’s admission, the profitand loss sharing ratio is 40:40:20 for Juan, Pablo, and Pedro, respectively, based on capital credits.Drawings were made in these amounts: Juan, P100,000; Pablo, P130,000; Pedro – P56,000. What isthe capital balance of Pedro after the first year?Cohtributed P20,000 cash while Chok contributed P28,000 in cash and office equipment which cost P16,000 with a fair market value of P13,000, to a new partnership. The journal entry to record the partnership investments of Ann and Chok would have credit of Ann, Capital and Chok, Capital, respectively, in the amounts of A. P20,000 and P44,000 B. P44,000 and P20,000 C. P41,000 and P20,000 D. P20,000 and P41,000 57. On November 1, Audrey and Shon formed a partnership with Audrey contributing land valued at P180,000 and a building valued at P265,000. Shon contributed P195,000 in cash. The partnership assumed the mortgage on Audrey's property of P130,000. Profits and losses are to be shared equally. What are the capital balances of Audrey and Shon, respectively, after recording these transactions? A. P315,000 and P195,000 B. P380,000 and P130,000 C. P445,000 and P195,000 D. P255,000 and P255,000 58. Jose Mercado, a sole proprietor, entered into partnership with another individual. The…