Estrada – Cash of P80,000 Molina – Equipment of P50,000 The equipment was subject to a mortgage of P10,000 that was assumed by the partnership. The partners agreed to share profits and losses equally, Molina’s capital account at March 1 should be
Q: A, B and C are partners with average capital balances during 2018 of P470,000. P230,000, and…
A: SOLUTION- 1- CAPITALS A=P 470000 B= P 230000 C=P 160000
Q: Jo, Lee and Bee are partners who share profits and losses in the ratio of 35:25:40 to Jo, Lee and…
A: Partnership is a sort of business formation on which partners agree to share profits and losses as…
Q: n 1 July 2020 Michael and Jackson decided to join forces and form a partnership (M&J Partners).…
A: Partnership : It is a group of person who agree to contribute the financial and human resources for…
Q: have occurred for the partnership: Event 1: On April 1, 2017, after charging the old partners’…
A: The form of business established by two or more individuals is known as the Partnership form of…
Q: On April 15, 2014, John and Greg formed a partnership. John is to invest a certain business asset at…
A: Partnership means where two or more person comes together to do some common business activity and…
Q: AA and BB entered into partnership on March 1, 2022 by investing the following assets: AA BB…
A: In the given question AA and BB will share profits and losses in the partnership firm in the ratio…
Q: Claire,Dolly and Ellery formed the CDE Partnership on September 1, 2016, with the following assets,…
A: Claire, Dolly and Ellery formed partnership on 01.09.2016 CLARIE DOLLY ELLERY Cash Accounts…
Q: he partnership of Cruz, Amistoso, and Galicia decided to liquidate their partnership on May 31,…
A: SOLUTION- PARTNERSHIP IS AN ARRANGEMENT BETWEEN TWO OR MORE PEOPLE TO OVERSEE BUSINESS OPERATIONS…
Q: Red, white, and Blue form a partnership on May 1,2013. They agree that red will contribute office…
A: Partnership is defined as the formal contract or agreement among two or more than two parties who…
Q: On February 1, 2022, AA and BB formed a partnership and agreed to share profits in the ratio of 46…
A: Partnership is one of the form of business organisation, under which two or more than two partners…
Q: On May 1, 2022, AA and BB formed a partnership with each contributing the following assets: Partner…
A: The partnership is an agreement between two or more partners where partners are agreed to work…
Q: How much is the capital of Fernan at December 31, 2019? How much is the capital of Luisa at December…
A: As per our protocol we provide solution to the one question or up-to three sub-parts only and you…
Q: Gomez and Cruz formed a partnership on January 1, 2020 and contributed the following assets: Gomez…
A: Lets understand the basics. Partnership is an agreement between two or more person who works…
Q: The partnership of Cruz, Amistoso, and Galicia decided to liquidate their partnership on May 31,…
A: The partnership firm of Cruz, Amistoso, and Galicia Computation of statement of partnership equity…
Q: On March 15, 2014, x, Y, and Z formed a partnership. X contributed cash of P75,000. Y contributed…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: A and B decided to form a partnership on January 1, 2022. Partner A contributed building which…
A: Solution: Partner A capital in the partnership books = Fair value of asset invested in partnership…
Q: On May 1, 2018, Jose and Pedro formed a partnership and agreed to share profits and losses in the…
A: Partnership is one of the agreement or association that is made between two or more than two…
Q: Syawla and Reven began a partnership by investing $120,000 and $230,000, respectively. During its…
A: 1.
Q: P, A and L formed a partnership and have average capital balances of P195,000, 246,000 and 294,000…
A: The operating income after partners’ salaries and bonus = P105,000 An interest of 10% on the average…
Q: Need Complete Explanation
A: Calcuation of share of loss by Partner Z.
Q: uan and Pedro formed a partnership on June 1, 2022. They contributed cash amounting to P 50,000 and…
A: A partnership is a relationship between two or more persons/partners who have agreed to share…
Q: Charles, Ward, and Nelson formed a partnership on January 1, 2016, with investments of $100,000,…
A: Capital is the amount of money invested by the partners in the partnership firm. It is the amount…
Q: The partnership of Maria, Clara, and Rita was formed on January 2, 2013. The original investments…
A: THE income statement shows the division of net profit among the partners as agreed or given in the…
Q: Herbert and Ireneo are partners sharing profits and losses in the ratio of 60 % and 40% ,…
A: When a new partner is admitted into a partnership firm then the profit sharing ratio of the existing…
Q: A, B and C are partners with average capital balances during 2018 of P470,000. P230,000, and…
A: SOLUTION- GIVEN, 1-CAPITALS- A=P 470000 B=P 230000 C=P 160000 2-PARTNERS RECEIVES 10% INTEREST ON…
Q: A and B entered into a partnership on April 1, 2020 by investing the following assets: A - Cash…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Kind and Lucky formed a partnership by contributing cash amounting to P240,000 and P480,000…
A: Partnership: Partnership is a form of business organization in which two or more two individuals…
Q: A, B, and C are partners with average capital balances during 2016 of P472,500, P238,650, and…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Kai and her very close friend Bigan formed a partnership on January 1,2015 with Kain contributing…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: A, B and C were partners with capital balances on January 1, 2016, of P300,000, P200,000 and…
A: The question is related to Partnership Accounting. We will proceeds the question by calculating the…
Q: Property, Plant and Equipment 2,094,390 450,000 - A part of Claire's cash contribution, P324,000,…
A: Claire, Dolly and Ellery formed partnership on 01.09.2016 Contributed to partnership by each partner…
Q: Use the following information for numbers 24 to 28. A, B and C formed a partnership on January 2,…
A: 24. Ans. Partner A. P 110000 25. Ans. Partner B. P 220000 Solution Capital of A on Jan 2 ,…
Q: On March 1, 2015, II and JJ formed a partnership with each contributing the following assets: || JJ…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: On June 30, 2015, the balance sheet of Western Marketing, a partnership, is summarized as follows:…
A: A partnership is a legally binding contract between two or more persons to run and manage a business…
Q: E1, E2, and E3 are partners sharing profits in the ratio of 4:4:2 respectively. As of December 31,…
A: SOLUTION- NOTE= E4 WILL GIVEN 20% SHARE IN PROFITS OUT OF WHICH 15% OF E2 WOULD BE TAKEN BY HIM.…
Q: On March 1, 2018, X and Y formed a partnership. The partners contributed the following: Y Cash…
A: SOLUTION- PARTNERSHIP- IT IS ASSOCIATION OF TWO OR MORE PARTIES CONDUCTING BUSINESS TOGETHER IN…
Q: On May 1, 2016, Peppa and Piggy formed a partnership and agreed to share profits and losses in the…
A: A partnership seems to be a contractual arrangement involving two or more parties to manage a…
Q: Mom, Pop, and Son are partners sharing profits and losses at 5:3:2, respectively. As of December 31,…
A: The activity when a new person is admitted to the partnership is referred to as admission of…
Q: Juan and Pedro formed a partnership on June 1, 2022. They agreed to split their profits on a 3:7…
A: Two or more persons joining together to do business is called a partnership firm. The partnership…
Q: Claire,Dolly and Ellery formed the CDE Partnership on September 1, 2016, with the following assets,…
A: Claire, Dolly, and Ellery formed a partnership on 01.09.2016 Claire Dolly Ellery Cash…
Q: Claire,Dolly and Ellery formed the CDE Partnership on September 1, 2016, with the following assets,…
A: Claire, Dolly and Ellery formed partnership on 01.09.2016 Contributed to partnership by each partner…
Q: ho share profits and losses in the ratio of 35:25:40 to Jo, Lee and Bee respectively. The statement…
A: The right anser is C. 20,250
Q: Claire, Dolly and Ellery formed the CDE Partnership on September 1, 2016, with the following assets,…
A: Bonus Method: If new partner’s investment exceeds the book value of the capital interest, difference…
Q: Four M Co., a partnership was formed on January 2016, with four partners, Joy, Ash, Elisha and…
A: Partnership is an agreement between two or more than two persons, in which they invest capitals, run…
Q: ally after Rubio and Bisana established a trading partnership. allowing salaries of P40,000 per year…
A: Definition of partnership: Its an agreement between two or more members to form a business called…
Q: Nurul and Fiza are partners of a day care centre called Happy Kids, which they formed on 1 January…
A: To record the investment by the partner in the partnership firm, the assets invested by the partners…
Q: On June 30, 2015, the balance sheet of Western Marketing, a partnership, is summarized as follows:…
A: The book value method is the method of accounting for the investment by the new partner at the time…
Q: 12. May 1, 2016, Cobb and Mott formed a partnership and agreed to share profits and losses in the…
A: The answer are as follows
Q: A, B and C are partners with average capital balances during 2018 of P470,000. P230,000, and…
A: The partnership form of business distributed the net loss or net profit incurred during…
Q: Ceradoy, Manongsong and Anuran are partners sharing residual profits in the ratio of 3:2:1. The…
A: Profit sharing ratio of Ceradoy, Manongsong and Anuran=3:2:1 Interest on capital=8% Interest on…
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
- Estrada and Molina formed a
partnership on March 1, 2016 and contributed the following assets:
Estrada – Cash of P80,000
Molina – Equipment of P50,000
The equipment was subject to a mortgage of P10,000 that was assumed by the partnership. The partners agreed to share
Step by step
Solved in 2 steps
- X, Y and Z are in Partnership, sharing profits and losses in the ratio of 3 : 2 : 1, respectively. Z’s share in the profit is guaranteed by X and Y to be a minimum of Rs. 8,000. The net profit for the year ended March 31, 2017 was Rs. 30,000.Prepare Profit and Loss Appropriation Account, indicating the amount finallydue to each partner.On February 1, 2022, AA and BB formed a partnership and agreed to share profits in the ratio of 4:6, respectively. AA contributed a laptop which cost him P68,000 and was estimated to have a value of P50,000 on date of formation. BB contributed cash of P250,000. How much is the capital account of BB upon formation of the partnership?On May 1, 2016, Peppa and Piggy formed a partnership and agreed to share profits and losses in the ration of 3:7, respectively. Peppa contributed a parcel of land that cost P10,000. Piggy contributed P40,000 cash. The land was sold for P18,000 on May 1, 2016, immediately after formation of the partnership. What amount should be recorded in Peppa’s capital account on formation of the partnership?
- Claire,Dolly and Ellery formed the CDE Partnership on September 1, 2016, with the following assets, measured at book values in their respective records, contributed by each partner: CLAIRE DOLLY ELLERY Cash 486,000 460,107 231,903 Accounts Receivable 109,620 - 141,000 Property, Plant and Equipment 2,094,390 450,000 - A part of Claire's cash contribution, P324,000, comes from personal borrowings. Also, PPE of Claire and Dolly are mortgaged with the bank for P1,458,000 and P108,000, respectively. The partnership is to assume responsibility for these PPE mortgages. The fair value of the accounts receivable contributed by Ellery is P137,000 while the PPE contributed by Dolly at this date is P510,300. The partners have agreed to share interests on a 5:3:2 ratio, to Claire, Dolly and Ellery, respectively.Bulan, Bustos, and Bucao formed a partnership on January 1, 2009 and contributed P150,000, P200,000, and P250,000, respectively. The Articles of Co-Partnership provide that the operating income be shared among the partners as follows: As salary: Bulan – P24,000; Bustos – P18,000; Bucao – P12,000; interest of 12% on the average capital during 2009 of the three partners; the remainder will be divided in the ratio of 2:4:4, respectively. Additional information: a. Operating income for the year ended December 31, 2009 is P180,000. b. Bulan contributed additional capital of P30,000 on July 1, and made drawing of P10,000 on October 1. c. Bustos contributed capital of P20,000 on August 1 and made withdrawal of P10,000 on October 1. d. Bucao made withdrawal of P30,000 on November 1. The division of the P180,000 operating income for Bucao will be: _____________On May 1, 2018, Jose and Pedro formed a partnership and agreed to share profits and losses in the ratio of 3:7, respectively. Jose contributed a computer that cost himP50,000. Pedro contributed P200,000 cash. The computer was sold for P55,000 on May 1, 2018 immediately after the formation of the partnership. What amount should be recorded in Jose’s capital account on formation of the partnership?a. P55,000 b. P51,500 c. P60,000 d. P50,000
- Claire,Dolly and Ellery formed the CDE Partnership on September 1, 2016, with the following assets, measured at book values in their respective records, contributed by each partner: CLAIRE DOLLY ELLERY Cash 486,000 460,107 231,903 Accounts Receivable 109,620 - 141,000 Property, Plant and Equipment 2,094,390 450,000 - A part of Claire's cash contribution, P324,000, comes from personal borrowings. Also, PPE of Claire and Dolly are mortgaged with the bank for P1,458,000 and P108,000, respectively. The partnership is to assume responsibility for these PPE mortgages. The fair value of the accounts receivable contributed by Ellery is P137,000 while the PPE contributed by Dolly at this date is P510,300. The partners have agreed to share interests on a 5:3:2 ratio, to Claire, Dolly and Ellery, respectively. Required: Use Bonus and Goodwill Method in computing the Capital balances of Claire, Dolly and Ellery.The partnership of Chichay and Joacquin was formed on February 28, 2021. On this date, Chichay invested P100,000 cash and an office equipment valued at P175,000. Joacquin invested P80,000 cash; merchandise valued at P120,000 and Building valued at P340,000 subject to a mortgage of P40,000 which the partnership will assume. The partnership provides that Chichay and Joacquin share profits and losses in the ratio of 2:3, respectively. The agreement further provides that Chichay and Joacquin should initially have an equal interest in the partnership capital. What is Joacquin’s net investment in the partnership? What is Chichay’s capital balance upon formation of the partnership? What amount of capital is to be transferred to Chichay to conform with their agreement?On December 1, 2015, EE and FF formed a partnership agreeing to share profits and losses in the ration of 2:3, respectively, EE invested in a parcel of land that cost him P25,000. FF invested P30,000 cash. The land was sold for P50,000 on the same date, three hours after the formation of the partnership. How much should be the capital balances of EE right after formation? P25,000 O P30,000 O P60,000 O P50,000 The answer is not provided.
- The partnership of Chichay and Joacquin was formed on February 28, 2021. On this date, Chichay invested P100,000 cash and an office equipment valued at P175,000. Joacquin invested P80,000 cash; merchandise valued at P120,000 and Building valued at P340,000 subject to a mortgage of P40,000 which the partnership will assume. The partnership provides that Chichay and Joacquin share profits and losses in the ratio of 2:3, respectively. The agreement further provides that Chichay and Joacquin should initially have an equal interest in the partnership capital. What is Joacquin’s net investment in the partnership? What is Chichay’s capital balance upon formation of the partnership?Sugino and Rio formed a partnership on July 1, 2022. Sugino invested P20,000 cash, inventory valued at P15,000, and equipment valued at P67,000. Rio invested P50,000 cash and land valued at P120,000. The partnership assumed the P40,000 mortgage on the land. On June 30, 2023, the partnership reported a net loss of P24,000. The partnership contract specified that income and losses were to be allocated by allowing 10% interest on the original capital investment, salaries of P15,000 to Sugino and P20,000 to Rio, and the remainder to be divided in the ratio of 40:60. On July 1, 2023, Hayami was admitted into the partnership with a P70,000 cash investment. Hayami was given a 30% interest in the partnership because of his special skills. The partner elect to use the bonus method to record the admission. Any bonus should be divided in the old ratio of 40:60. On June 30, 2024, the partnership reported net income of P150,000. The new partnership contract stipulated that income and losses were to…The partnership of Abel and Caine was formed on February 28, 2017. At that date the following assets were invested: Abel Caine Cash $ 120,000 $200,000 Merchandise -0- 320,000 Building -0- 840,000 Furniture and equipment 200,000 -0- The building is subject to a mortgage loan of $280,000, which is to be assumed by the partnership. The partnership agreement provides that Abel and Caine share profits or losses 30% and 70%, respectively. Caine's capital account at February 28, 2017, should be A) $1,080,000. B) $1,360,000. C) $1,176,000. D) $952,000.