A man owes his partner Ba sum of Rs. 1,50,000 in a business deal is requested by the latter to pay the money in 24 instalments by starting just one paise a day and doubling the amount on each successive day. Do you think that A will gain in the business. Calculate his actual gain or loss.
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- Mohit, Neeraj and Sohan are partners in a firm sharing profits in the ratioof 2 : 1 : 1. Neeraj retires and Mohit and Sohan decided that the capital ofthe new firm will be fixed at Rs. 1,20,000. The capital accounts of Mohit and Sohan show a credit balance of Rs. 82,000 and Rs. 41,000 respectively after making all the adjustments. Calculate the actual cash to be paid off or to be brought in by the continuing partners and pass the necessary journal entries.The sole proprietor of the FM2 Financial Services, Bondo, receives all accounting profits earned by her firm and a K28,000-a-year salary she pays herself. It is noteworthy that she also has a standing salary offer of K35,000 a year if she agrees to work for Bank of Zambia. If she had invested her capital outside her own company, she estimates that would have made a return of K22,000 a year. Further, information has reached you that last year, Bondo's accounting profit was K50,000. Calculate her economic profit?d) QBank makes a personal loan of £10,000 to Mr A, and credits his current account with the amount of the loan. Describe the initial impact on QBank’s balance sheet, the money supply, and the net worth of both QBank and Mr A. e) Mr A then withdraws £10,000 in cash with which he pays Ms B for building work. She immediately deposits it in her current account with another bank, RBank. What is the impact on QBank’s balance sheet, and on the aggregate money supply? f) Financial media report that QBank has made “significant” capital losses on some of its financial investments, as well as suffering high default rates on its loans to households. Discuss the possible consequences, using the information in your earlier answers.
- Mrs. C-hammer, the owner of Tura innovations, invests N$140 000 in her business. She also approaches a bank that lends her N$60 000. Calculate the value of her business. Answer:Accounting A, B and C had capital balance of : A,$150,000; B, 120,000 and C, 200,000, profit sharing ratio: 1:2:3. A decides to retire. A is paid 180,000 and goodwill of all partners is recorded (Problem 5 related) what will be the balance in the Capital Account of B after A’s retirement? (Problem 5 related) what will be the balance in the Capital Account of C after A’s retirement? (Problem 5 related) true or false in the journal entry of A’s retirement, the goodwill account will be debited with $ 30,000.A,B and C are partners in a firm. A and B are to get annual salary of Rs.1,20,000p.a. each as they manage business. Net profit for the year is Rs.4,80,000. Determine the share of profit to be credited to each partner
- Required: 1. How much will Mira receive if the net income earned is P 155,000? * 2. Except that the company incurred net loss of P 9,200, compute for the share of each partner. *A business owned by A1 was short of cash and she decided to form a partnership with A2, who was able to contribute cash 1.5 times the interest of A1 in the new partnership. The assets contributed by A1 appeared as follows in the statement of the financial position of her business: cash, P8,000; accounts receivable, P188,000, with allowance for uncollectible accounts of P5,000; merchandise inventory, P419,000 and store equipment, P149,000 with accumulated depreciation of P14,000. freshman freshma A1 and A2 agreed that the allowance for uncollectible accounts was inadequate and should be P10,000. They also agreed that the fair value for the inventory is P455.000 and the store equipment is P120.000. The cash contributed by A2 into the partnership is ______A business owned by A1 was short of cash and she decided to form a partnership with A2, who was able to contribute cash 1.5 times the interest of A1 in the new partnership. The assets contributed by A1 appeared as follows in the statement of the financial position of her business: cash, P8,000; accounts receivable, P188,000; with allowance for uncollectible accounts of P5,000; merchandise inventory, P419,000 and store equipment, P149,000 with accumulated depreciation of P14,000. A1 and A2 agreed that the allowance for uncollectible accounts was inadequate and should be P10,000. They also agreed that the fair value for the inventory is P455,000 and the store equipment is P120,000. The cash contributed by A2 into the partnership is ____.
- Jeff Layton, sole proprietor of a hardware business, decides to form a partnership with Nicholas Fell. Jeff’s accounts are as follows: Book Value Market Value Cash $ 30,000 $ 30,000 Accounts Receivable (net) 55,000 45,000 Inventory 112,000 135,000 Land 40,000 100,000 Building (net) 500,000 540,000 Accounts Payable 25,000 25,000 Mortgage Payable 125,000 125,000 Nicholas agrees to contribute $120,000 for a 20% interest. Journalize the entries to record (a) Jeff’s investment and (b) Nicholas’ investment.X had started business with $2,00,000 in the beginning of the year. During the year, he borrowed $1,00,000 from Y. He further introduced $2,00,000 in the business. He also gave $50,000 as loan to his son. Goods given away as charity by him were $20,000. Profits earned by him were $2,50,000. He also withdraw $30,000 from the business. His capital at the end of the year would be__________.T. Thomas withdraws from his partnership with five other partners and takes cash equal to his capital balance, in the amount of $25,000. The journal entry to reflect this transaction would include which of the following? (Check all that apply.) Multiple select question. Credit to Cash Debit to T. Thomas, Capital Credit to T. Thomas, Capital Debit to Cash