Partners John and Paul divide profits and losses 6:4 with capital balances of P 540,000 and P670,000 respectively. They agreed to admit Peter by his purchase of one-fourth of John's interest for P300,000. They agreed to write off Accounts Receivable worth P 10,600. Fixed assets were under-depreciated by P 30,000. Payments of accounts payable in the amount of P 8,600 was not posted to the payable account. What amount shall be debited to John's interest? * P127,620 O P128,910 O P130,200

Partners John and Paul divide profits and losses 6:4 with capital balances of P 540,000 and P670,000 respectively. They agreed to admit Peter by his purchase of one-fourth of John's interest for P300,000. They agreed to write off Accounts Receivable worth P 10,600. Fixed assets were under-depreciated by P 30,000. Payments of accounts payable in the amount of P 8,600 was not posted to the payable account. What amount shall be debited to John's interest? * P127,620 O P128,910 O P130,200

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter20: Corporations And Partnerships

Section: Chapter Questions

Problem 5CPA

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Partners John and Paul divide profits and losses 6:4 with capital balances of P 540,000 and P670,000 respectively. They agreed to admit Peter by his purchase of one-fourth of John’s interest for P300,000. They agreed to write off Accounts Receivable worth P 10,600. Fixed assets were under-depreciated by P 30,000. Payments of accounts payable in the amount of P 8,600 was not posted to the payable account. What amount shall be debited to John’s interest? a. P127,620 b. P128,910 c. P130,200 d. P300,000
d. 6. Partners Manalo and Capuno receive an interest allowance of P100,000 and P150,000, respectively, and divide the remaining profits and losses in a 3:1 ratio. If the company sustained a loss of P110,000 during the year, what is the effect on Manalo's capital? a. P82,500 decrease b. P120,000 decrease C. P170,000 decrease d. P105,000 decrease
X, Y & Z are partners sharing profits in the ratio of 4:3:3. Assets with book value of P1,000,000 were realized for P400,000. Before liquidation, the capital of Z was P150,000. How much will be Z’s capital balance after the distribution of loss?
A, and B are partners sharing profits in the ratio of 2:3. Their balance sheet shows machineryat ₹2,00,000; stock ₹80,000, and debtors at ₹1,60,000. C is admitted and the new profitsharing ratio is 6:9:5. Machinery is revalued at ₹1,40,000 and a provision is made fordoubtful debts @5%. A’s share in loss on revaluation amount to ₹20,000. Revalued value ofstock will be:(a) ₹62,000 (b) ₹1,00,000 (c) ₹60,000 (d) ₹98,000
ABC had capital balances of P40,000, P25,000 and P5,000 respectively with profit sharing ratio of 3:2:1 respectively. The partners decided to dissolve and liquidate. They sold all the non-cash assets for P37,000 cash. After settlement of all liabilities amounting to P12,000, they still have P28,000 cash left for distribution. What was the loss on the realization o the non-cash assets?
Partners ABC, DEF and GHI decided to liquidate the the share profits and losses in the ratio of 2:3:5, respectively. At the end of a very unprofitable year, they firm. The partner's capital account balances at this time are as follows: ABC - P22,000; DEF -P24,900 and GHI - P15,000. The liabilities accumulate to P30,000, including a loan of P5,000 from ABC. The cash balance is P6,000. All the partners are personally solvent. The partners plan to sell the assets in installment. If ABC received a total of P50,000 as a result of the liquidation, compute for the cash distributed to DEF.
The following information was obtained from the records of Alben Traders, a partnership business with Albert and Bennie as partners, after the net profit of /R546 000 was appropriated between the partners: Partners' salaries R480 000; Interest on drawings R6 000; Total share of the remaining loss R48 000. Which of the following reflects the value of the interest on capital? O A. R108 000 OB. R24 000 O C. R120 000 O D. R972 000
The partners of Dan and Ken are engaged in trading. Dan's original capital was P40,000 and Ken 's was P60,000. They agreed to share profits and losses as follows: Dan Ken Php28,000 10% 30% Salaries Interest on original capital Balance Php40,000 10% 70% а. Р44,600 b. Р46,400 If the profits for the year were P120,000, what share of the profits would Dan receive? c. P57,400 d. P75,600 а. Р2,600 b. (Р22,600) [f the losses for the year were P20,000, what share of the loss would Ken receive? c. (P2,600) d. P5,200
The following information was obtained from the records of Alben Traders, a partnership business with Albert and Bennie as partners, after the net profit of R546 000 was appropriated between the partners: Partners' salaries R480 000; Interest on drawings R6 000; Total share of the remaining loss R48 000. Which of the following reflects the value of the interest on capital? • A. R24 000 O B. R108 000 O C. R972 000 O D. R120 000
Partners Hapon, Chino and Koring decided to liquidate. Cash available, after Realizing of assets amounting to P250,000 and payment of liabilities of P85,000, amounted to P 194,550 while Capital balances of the partners amounted to P80,000, P118,300 and (P3,750) to Hapon, Chino and Koring respectively. Assuming all partners are insolvent with profit and loss ratio of 40%, 35% 25% respectively, the Hapon's share in the available cash balance would be?Chino's share in the available cash balance would be?Koring's share in the available cash balance would be?how much was the Cash balance before liquidation?
Non-Cash Assets recorded in the accounting records as $30 sold for $50 during the liquidation process. Consider the following: Easy, Capital Balance $12 Peasy, Capital Balance $13 Gains and Losses are divided equally. How would the partners' capital balances be affected by the sale of the non-cash assets? Group of answer choices a. Peasy's balance would increase by $10 . b. Peasy's balance would decrease by $10 . c. Peasy's balance would increase by $13. d. Peasy's balance would decrease by $13.
The partners of Dan and Ken are engaged in trading. Dan's original capital was P40,000 and Ken 's was P60,000. They agreed to share profits and losses as follows: Dan Ken Php28,000 10% Php40,000 10% 70% Salaries Interest on original capital Balance 30% n7 - 15. If the profits for the year were P120,000, what share of the profits would Dan receive? а. Р4,600 b. P46,400 с. Р57,400 d. P75,600