(Hidden Goodwill) joseph, Marco and David were partners sharing profits in the ratio of 2:2: 1. Marco
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- A and B are partners sharing profits and losses equally. Their capitals on 1.1.2015 were $ I0,000 and $ 5,000 respectively. On the same date C admits ffor 1/4th share and brings $ 10,000 for his sthare of capital, but can't bring his share of goodwill in cash. Record necessary journal entries.John and Peter are in partnership sharing profits and losses in the ratio 3/5: 2/5, respectively.The following is their trial balance as of 31 December 2007.Dr Cr$ $Buildings (cost $105,000) 80,000Fixtures at cost 4,100Provision for depreciation: Fixtures 2,100Debtors 30,700Creditors 13,295Cash at bank 3,065Stock at 01 January 2008 31,370Sales 181,555.50Purchases 105,000Carriage outwards 1,705Discounts allowed 310Loan interest: M. Money 1,950Office expenses 2,380Salaries and wages 28,904.50Bad debts 816Provision for doubtful debts 700Loan from M. Money 32,500Capitals: Shoes 50,000Socks 37,500Current accounts: Shoes 2,050Socks 600Drawings: Shoes 15900Book 14,100320,300.5 320,300.5i. Stock, 31 December 2008, $35,105ii. Expenses to be accrued: Office Expenses $107.50; Wages $360iii. Depreciate fixtures 15 percent on reducing balance basis, buildings $2,500iv. Reduce provision for doubtful debts to $625v. Partnership salary: $15,000 to Shoes. Not yet enteredvi. Interest on drawings:…Mr. B and Mr. E are partners sharing Profits and Losses in the ratio of 3: 2. On 30th September, 2014 they admit Mr. Cas a partner, and the new profit ratio is 2:2:1. C brought in Fixture $ 3,000 and cash $ 10,000, the goodwill being (i) B and E$ 20,000 and (ii) C $ 10,000 but neither figure is to be brought into the books. On 31s* March, 2015, the partnership is dissolved, B retiring and the other two partners forming a company called BC Limited with equal capitals, taking over all remaining assets and liabilities, goodwill being agreed at $ 40,000 and brought into books of the company. B agrees to take over the business car at $ 3,700 : Plant was sold for $ 3,000 being in excess of requirements. The profits of the two preceding years were $ 17,200 and $ 19,000 respectively and it was agreed that for the half year ended 30th September, 2014, the net profit was to be taken as equal to the average of the two preceding years and the current year. No entries had been made when C entered,…
- (Treatment of goodwill) A and B are partners sharing profits and losses in the ratio of 3: 2. On 1.4.2014 C was admitted as a partner paying $30,000 as capital and the necessary amount of goodwill which was valued at $54,000 for the firm. His share of profits is 1/6 which he acquires equally from A and B. The profit for the year ended 31st March 2015 was $36,000. Journalise the above transactions.Show the solution in good accounting form John and Paul are partners who share profits and losses in the ratio of 3:2 respectively. John's salary is P180,000 and Paul's is P140,000. The partners are paid interest on their average capital balances where John received interest of P 30,000 and Paul, P 15,000. The profit and loss allocation is determined after deduction for the salary and interest payments. If John received P280,000 from partnership income, what was the total partnership income? *Required: 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?
- (Treatment of goodwill) A, B and C were partners sharing profit & in the ratio of 4:3:3. B dies and the goodwill of the firm is valued at $25,000. Assuming that A and C will share the future profits in the ratio of 3:2. Pass the journal entries in each of the following alternative cases: Case a: When no goodwill account appears in the books. Case b: When goodwill account appears in the books at $10,000.Yaw, Mary, and Hanna have been in partnership for a number of years sharing profit in the ratio 6:5:3. Work-in-progress was not brought into the accounts. The balance sheet of the partnership as at 31" March 2020 showed the following position: GH c000 GH c000 Tangible Assets 25,000.00 G oodwill Capital account: 22,400.00 Y aw 12,950.00 Maгy 18,000.00 D ebto rs 73,500.00 Hanna 8,700.00 balance at bank 10,450.00 Sundry C reditors 67,600.00 119,300.00 119,300.00 On 31" March 2020, Yaw retired from the partnership, and it was agreed to admit Osei as a partner on the following terms: i. Goodwill in the old partnership was to be revalued to two years purchase of the average profit over the last three years. The profit of the last three years have been GHC12,400,000; GHC13,600,000; GHC14,005,000. Goodwill was to be written off in the new partnership. ii. Yaw is to take his car out of the partnership assets at an agreed value of GHC1,000,000. The car had been included in the accounts as at 31…Item No. 22 is based on the following information: sand on IS 03 Q5 2011 mat After operating for eight years, the books of the partnership of Jack and Jill showed the following balances: P 260,000 Net Assets Jack Capital- P 170,000 90,000 Jill Capital Total Capital -- P 260,000 22. If liquidation takes place at this point and the assets were sold at carrying amounts, the cash settlement between the partners would be: a. Jack will receive P 130,000 and Jill will receive P 130,000. b. Jack will receive P 170,000 and Jill will receive P 90,000. c. Jack will receive P 180,000 and Jill will receive P 80,000. d. Jack will receive P 195,000 and Jill will receive P 65,000. Item No.23 is based on the following information: Mar, Tee, Nee, and Kho, sharing profits in the ratio of 3/21, 4/21, 6/21, and 8/21, respectively, decided to liquidate. Their capital balances on June 30, 200D were as follows: Mar, P 10,000, Tee, P 250,000, Nee, P 250,000, and Kho, P 90,000. The noncash assets were converted…
- Qu Maali and Marwa are partners of Perfurme business sharing profit and loss in the ratio of 6:2. Their Balance Sheet as on 31/12/19 shows OMR 35,000 as Profit and Loss A/c in the liabilities side. On 31-12-2020 they admit mizna, on that date, their Balance Sheet showed an amount of Profit and Loss A/c in the Asset side. OMR 15,000 as ut of 10 On the same Balance Sheet an reserve fund of OMR 19500 were found. Record necessary journal entries in Maali and Marwa Perfume business. uestion FinisHewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $6,000 and $4,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $8,000. Question Content Area a. What is the amount of a gain or loss on realization? $fill in the blank a082cef9b012fe9_2 Question Content Area b. How should the gain or loss be divided between Hewitt and Patel? Hewitt $fill in the blank fe57f5f50043050_2 Patel $fill in the blank fe57f5f50043050_4 Question Content Area c. How should the cash be divided between Hewitt and Patel? If an amount is zero, enter "0". blankHewitt and PatelDistribution of Cash Hewitt Patel Capital balances before realization $fill in the blank 2e3dfe08df82014_1 $fill in the blank 2e3dfe08df82014_2 Division of gain or loss on realization fill in the blank…On June 1, 2015, DAVE and MAR are combining their separate business to form a partnership. Cash and noncash assets are to be contributed. The noncash assets to be contributed and the liabilities to be assumed are as follows: DAVE Fair value MAR Book value Account receivable Inventory PPE Accounts payable Book value P 25,000 40,000 100,000 15,000 P26,250 450,000 91,250 (15,000) P20,000 20,000 86,250 11,250 Fair value P19,500 20,750 82.250 11,250 DAVE and MAR are to invest equal amounts of cash such at hat the contribution of DAVE would be 10% more than the investment of MAR 8. What is the amount of cash presented on the partnership's statement of financial position on June 1, 2015? D. 251,250 A. 276,250 B. 480,500 C. 552,500