balances of partnership accounts are: cash 50,000 account payable (70,000) Wall capital (30%) (90,000) Nael capital (30%) 10000 Tamer capital (40) 100,000 Tamer paid 100,000 to cover his deficit, capital balance after that should be O A. Wall 80000, Nael 0, tamer 0 O B. Wall 90000, Nael 0, tamer 0 Oc. Wall 85714, Nael 0, tamer 0

balances of partnership accounts are: cash 50,000 account payable (70,000) Wall capital (30%) (90,000) Nael capital (30%) 10000 Tamer capital (40) 100,000 Tamer paid 100,000 to cover his deficit, capital balance after that should be O A. Wall 80000, Nael 0, tamer 0 O B. Wall 90000, Nael 0, tamer 0 Oc. Wall 85714, Nael 0, tamer 0

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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2. The capital balances of partners Po and Gi are as follows:Po GiJanuary 1, Beginning P100,000 P200,000June 30, investment 50,000 -September 30, withdrawal - (100,000)Balance P150,000 P100,000Their agreement is to share profit and loss based on average capital balance. How muchis the share of Gi in the partnership’s income of P450,000?
Presented below is the condensed balance sheet of the partnership of A, B, and C who share profits and losses in the ratio of 2:3:5. respectively: Cash 100,000 Liabilities 50,000 Other assets 350,000 A, Capital 110,000 B, Capital 120,000 C, Capital 170,000 Total 450,000 Total 450,000 The partners agree to sell to D 10% of their respective capital and profit and loss interests for a total payment of P50,000. The payment by D is to be made directly to the individual partners using the book value approach. Determine the capital balance of B after admission of the new partner.
Presented below is the condensed balance sheet of the partnership of A, B, and C who share profits and losses in the ratio of 2:3:5. respectively: Cash 100,000 Liabilities 50,000 Other assets 350,000 A, Capital 110,000 В, Сapital 120,000 C, Capital 170,000 Total 450,000 Total 450,000 The partners agree to sell to D 10% of their respective capital and profit and loss interests for a total payment of P50,000. The payment by D is to be made directly to the individual partners using the book value approach. The capital balances of A,B, and C, respectively after admission of D are:
3. The following are shown in the capital accounts of partners AA, BB, and CC in a year: AA BB CC Capital, January 1 Investment, June 1 Investment, October 1 P200,000 100,000 P300,000 P250,000 50,000 If the partnership has a net income of P500,000 for the year, distribute the net income on the basis of ending capital balances. Solution:
9. A partnership showed the following account balances: sales, P70,000; cost of sales,P40,000; operating expenses. P10,000; partners’ salaries, P13,000; interest paid tobanks, P2,000; interest allowances on average capital balances, P2,500 and partners’drawings, P8,000. How much is the partnership profit?
Item Nos. 3 to 5 are based on the following information: After the realization of noncash assets, the following account balances appeared in the general ledger of the partnership of See, Chap, and Pwe: P 10,000 Cash 30,000 Liabilities 5,000 Pwe Loan- 15,000 See Capital- 10,000 Chap Capital- 10,000 Pwe Capital- Profits are shared 2:4:4 for See, Chap, and Pwe, respectively. Pwe is insolvent. 3. How much was the loss on realization? C. P 70,000. a. P 50,000. d. P 80,000. b. P 60,000. 4. How much did See receive in the liquidation? C. P 5,000. a. PO. d. P 15,000. b. P 3,000. 5. How much additional investment did Chap make? a. P 10,000. C. P 15,000. b. P 14,000. d. P 20,000.
13. Presented below is the condensed balance sheet of the partnership of A, B, and C who share profits and losses in the ratio of 2:3:5. respectively: Cash 100,000 Liabilities 50,000 Other assets 350,000 A, Capital 110,000 B, Capital 120,000 C, Capital 170,000 Total 450,000 Total 450,000 The partners agree to sell to D 10% of their respective capital and profit and loss interests for a total payment of P50,000. The payment by D is to be made directly to the individual partners using the book value approach. Determine the capital balance of A after admission of the new partner.
Capital balances in the WXY partnership are W. Capital P 60,000; X Capital P 50,000 and Y. Capital P40,000 Profits and losses are 5:3:2, respectively. The WXYZ partnership is formed by admitting Z to the partnership with a cash investment of P 60,000 for a 25% capital interest. The bonus to be credited to Y in admitting Zis
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The ABC partnership has three equal partners, A, B, and C, and the following balance sheet: Assets Partner's Capital Adj. Basis FMV Adj. Basis FMV Cash 60,000 60,000 A 70,000 80,000 Cap Asset 1 90,000 60,000 B 70,000 80,000 Cap Asset 2 40,000 60,000 C 70,000 80,000 Cap Asset 3 20,000 60,000 210,000 240,000 210,000 240,000 A receives capital asset #1 in an operating distribution. A has a one-ninth interest worth $20,000 in the partnership capital and profits after the distribution. (a) What results to A and the partnership if there is no §754 election? Reconstruct the balance sheet after the distribution. (b) What results to A and the partnership if the partnership has made a §754 election? Reconstruct the balance sheet after the distribution. (c) How should any basis adjustment be allocated among the partners?
A partnership had the following condensed balance sheet: Cash P15,000 Liabilities P45,000Non-cash assets 195,000 Aron, capital(50%) 90,000Charlie, loan 15,000 Ben, capital(30%) 30,000Charlie,capital(20%) 60,000 The percentages in parenthesis after the partners’ capital balances represent their respective interests inprofits and losses. The partners agree to admit Dale as a member of the firm under the followingindependent situations.From the following, prepare the journal entries needed to record the admission of Dave and the capitalbalances of the partners in the new partnership. Dave purchases a 1⁄4 interest in the firm. One-fourth of the capital of Aron and Ben is to betransferred to the new partner. Dave pays Aron and Ben P45,000. The assets of the partnership are to beadjusted.
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