By mutual agreement, the non-cash assets of P160,000 were to be adjusted to their fairmarket value of P216,000 at December 31, 2014. It was agreed that the partnership wouldpay Sianosa P16,200 cash for her partnership's interest, including, her loan which is to berepaid in full.Required:1. Prepare adjusting entry to reflect in the book the revaluation of assets.2. Journal Entry to retire Sianosa from the partnership. 4-6Christy Sianosa, Josephine Rosete and Lynn Facturan are partners who shared profit and lossof 2:2:4, The post-closing'trial balance was presented below before Sianosa has decided toretire from the partnership:DebitCreditCashP 20,000Accounts Receivable35,000Furniture & Fixtures50,000P 9,000C. Sianosa, LoanC. Sianosa, CapitalJ. Rosete, CapitalL. Facturan, CapitalTota!42,00039,00090,000P180,000P180.000

The Retirement of an old partner in a partnership is treated as a reconstitution of the partnership…

By mutual agreement, the non-cash assets of P160,000 were to be adjusted to their market value of P216,000 at December 31, 2014. It was agreed that the partnership wo pay Sianosa P16,200 cash for her partnership's interest, including, her loan which is to repaid in full. Required: Prepare adjusting entry to reflect in the book the revaluation of assets. 2. Journal Entry to retire Sianosa from the partnership. 1.

By mutual agreement, the non-cash assets of P160,000 were to be adjusted to their market value of P216,000 at December 31, 2014. It was agreed that the partnership wo pay Sianosa P16,200 cash for her partnership's interest, including, her loan which is to repaid in full. Required: Prepare adjusting entry to reflect in the book the revaluation of assets. 2. Journal Entry to retire Sianosa from the partnership. 1.

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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The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torven, Capital Total Debit $ 7,200 38,000 27,000 98,400 Profit and loss percentages Preliquidation capital balances $170,600 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 25 percent; and Torves, 25 percent. 3. The partners are considering an offer of $112,000 for the firm's accounts receivable, inventory, and plant and equipment as of June 30. The $112,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated. Decrease LAPs to next highest Credit Required: Prepare a cash distribution plan as of June 30, 20X1, showing how much cash each partner will receive if the partners accept the offer to sell…
k The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torves, Capital Total Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances/loss percent) Decrease highest LAP to next highest Debit $ 7,808 34,000 24,808 99,908 Decrease LAPs to next highest: $ 164,908 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 25 percent; and Torves, 25 percent. 3. The partners are considering an offer of $110,000 for the firm's accounts receivable, inventory, and plant and equipment as of June 30. The $110,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated. Required: Prepare a cash distribution plan as of June 30, 20X1,…
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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
The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, Is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torves, Capital Total Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances / loss percent) Decrease highest LAP to next highest: Debit $ 6,800 30,000 22,000 99,700 Decrease LAPS to next highest: $ 158,500 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 30 percent; and Torves, 20 percent. 3. The partners are considering an offer of $108,000 for the firm's accounts receivable, Inventory, and plant and equipment as of June 30. The $108,000 will be paid to creditors and the partners in Installments, the number and amounts of which are to be negotiated. Required: Prepare a cash distribution plan as of June 30,…
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QUESTION 31. Frame and French are in partnership sharing profits and losses in the ratio 3/5:2/5, respectively. The following is their trial balance as at 30 September 2015. Dr Cr TZS TZS Buildings (cost TZS 210,000) 160,000 Fixtures at cost 8,200 Provision for depreciation: Fixtures 4,200 Debtors 61,400 Creditors 26,590 Cash at bank 6,130 Stock at 30 September 2014 62,740 Sales 363,111 Purchases 210,000 Carriage outwards 3,410 Discounts allowed 620 Loan interest: P Prince 3,900 Office expenses 4,760 Salaries and wages 57,809 Bad debts 1,632 Provision for doubtful debts 1,400 Loan from P Prince 65,000 Capitals: Frame 100,000 French 75,000 Current accounts: Frame 4,100 French 1,200 Drawings: Frame 31,800 French 28,200 640,601 640,601 Avitus Dominick: Msc Finance and Investment, CPA (T ) & BAC (0714-336097)
Requirement: Compute for the respective shares of the partners in | shared equally, while losses on a 70:30 ratio. The partnership PROBLEM 3: EXERCISES 1. Partners A and B share in profits and los es on a 70:30 ratio after salaries of P80,000 for A and P40,000 or B. The business earned profit of P180,000 before deduction or the salaries. Requirements: a. Compute for the partners' respective share in the profit. b. Provide the journal entries (the salar are withdrawn periodically). for annual salary 2. A and B's partnership agreement provi allowances of P160,000 for A and P80, for B. Profits are earned profit of P200,000. Reguirement: Compute for the respective shares of the partners in the profit.
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