Q7- In Shaksy Co., capital balances are Bilal $60,000 and Imran $75,000. The partners share income equally. Ubaid is admitted to the firm with a 40% interest by an investment of cash of $65,000. Journalize the admission of Ubaid.
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- In Crane Co, capital balances are frey $37.900 and Pedigo $45.400. The partners share income equally Vernon is admitted to the firm with a 42% interest by an investment of cash of $48,000. Journalize the admission of Vernon. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit CreditPartners WAG, MAG, PANG, and GAP, shares profits at the ratio 5:3:1:1. OnJune 30, relevant partners’ accounts follow: Advances Loans Capital Dr. Cr. Cr. WAG 20,000 160,000MAG 40,000 120,000PANG 18,000 60,000GAP 10,000 100,000 On this day, cash of P72,000 is declared as available for distribution topartners as profits. How much will partner Gap receive from the 72,000 if he has a hare in it?Partners WAG, MAG, PANG, and GAP, shares profits at the ratio 5:3:1:1. OnJune 30, relevant partners’ accounts follow: Advances Loans Capital Dr. Cr. Cr. WAG 20,000 160,000MAG 40,000 120,000PANG 18,000 60,000GAP 10,000 100,000On this day, cash of P72,000 is declared as available for distribution topartners as profits.How much will partner Gap receive from the 72,000 if he has a hare in it?
- (c) On December 31, the capital balances and income ratios in Bismillah Company are as follows. Capital Balance Tk. 100,000 80,000 50,000 Partner Abu Bakar Umar Income Ratio 50% 30% Usman 20% Instructions (1) Journalize the withdrawal of Usman under each of the following assumptions. (i) Each of the continuing partners agrees to pay Tk. 30,000 in cash from personal funds to purchase Usman's ownership equity. Each receives 50% of Usman’s equity. (ii) Umar agrees to purchase Usman’s ownership interest for Tk. 35,000 cash. (iii) Usman is paid Tk. 60,000 from partnership assets, which includes a bonus to the retiring partner. (iv) Usman is paid Tk. 42,000 from partnership assets, and bonuses to the remaining partners are recognized. (2) If Umar's capital balance after Posada's withdrawal is Tk. 100,600, what were (1) the total bonus to the remaining partners and (2) the cash paid by the partnership to Posada?In a USA Company capital balances are M $40,000 and H $50,000. The partners share income equally. K is admitted to the firm with a 40% interest by an investment of cash of $50,000. Journalize the admission of KoskoP12-2C At the end of its first year of operations on December 31, 2012, the LAX Company's Journalize divisions of net in- accounts show the following. come and prepare a partners' capital statement. Partner Drawings $12,000 9,000 4,000 Сapital $33,000 (SO 3, 4) J. Leno L. Arthur 20,000 10,000 J. Xavier The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2012 has not been closed to the partners' capital accounts. Instructions (a) (1) Leno $20,000 (2) Leno $14,000 (3) Leno $24,200 (a) Journalize the entry to record the division of net income for 2012 under each of the follow- ing independent assumptions. (1) Net income is $40,000. Income is shared 5:3:2. (2) Net income is $30,000. Leno and Arthur are given salary allowances of $11,000 and $10,000, respectively. The remainder is shared equally. (3) Net income is $33,000. Each partner is allowed interest of 10% on beginning capital bal- ances. Leno is given an $18,000 salary…
- On January 1. 20x7 Jorgia, Lizza. Miles, Nice formed a partnership. At the time of formation, the partners agreed to the following amount of investment, division of profits and losses, and drawings: Jorgia Lizza Miles Nice Initial Investment P36,000 P56,000 P60,000 P40.000 Profit and Loss Ratio 15% 30% 35% 20% Annual Withdrawals 20x7 P14,400 P14.400 P14,400 P14,400 20x8 19.200 19.200 19.200 19 200 20x9 14,600 14,600 30.000 30.000 The net income for 20x7, 20x8 and 20x9 armounts to P130,000, P156,000, P172.000 respectively. AL the end of 20x9. Miles was consented to withdraw from the partrership. 1. Compute for the capilal of Rice if Miles sold her interest to Rice with the consent of other partners at 10% more than her capilal balance. 2. Compute for the bonus to Nice if Miles sold her interest to the partnership at 10% less than her capital interest.16. Partners A, B and C had the following balances prior to admission of D: A, Loan (debit): P 20, 000; B, Loan (credit): P 60, 000; A, Capital (debit): P 30, 000; B, Capital (credit): P 120, 000; C, Capital (credit): P 70, 000. Partners A, B and C share profits and losses in the ratio 5:2:3 respectively. D is admitted in the partnership for a 20% interest in the partnership in exchange for an investment of P 40, 000 cash. Prior to admission of D, the partners agreed to increase the carrying value of inventories by P 60, 000 in order to bring it to its fair value. Immediately after the admission, the capital credit of D would be: a. P 46, 000 b. P 52, 000 c. P40, 000 d. P60, 000 e. answer not given16. Partners A. B and C had the following balances prior to admission of D: A. Loan (debit): P 20, 000; B, Loan (credit): P 60, 000; A, Capital (debit): P 30, 000; B, Capital (credit): P 120, 000; C, Capital (credit): P 70, 000. Partners A, Band C share profits and losses in the ratio 5:2:3 respectively. D is admitted in the partnership for a 20% interest in the partnership in exchange for an investment of P 40, 000 cash. Prior to admission of D, the partners agreed to increase the carrying value of inventories by P 60, 000 in order to bring it to its fair value. Immediately after the admission, the capital credit of D would be:
- W and X are partners who have agreed to admit Y, who will invest P15,000 for a 20 percent interest. The previous capital balances were P15,000 and P30,000 for W and X, respectively. W and X had shared profits and losses equally. What amount will be recorded in Y's Capital account? a. P6,000 credit b. P12,000 credit c. P15,000 credit d. P9,000 creditOn December 31, the capital balances and income ratios in Ivanhoe Co. are as follow: Partner. Capital Bal Income Ratios Trayer $99,000. 50% Emig 44,000 40% Posada 33,500. 20% Journalize the withdrawal of Posada under each of the following assumptions: A) Each continuing partner agrees to pay $16,400 in cas form personal funds to purchase Posadas's ownership equity. Each receives 50% of Posada's equity. B) Emig agrees to purchase Posada's ownership interest for $23,000 cash. C) Posada is paid $37,580 from partnershi assets, which includes a bonus to the reitring partner. D) Posada is paid $24,140 from partnership assets and bonuses to the remaining patners are recognized.In Indigo Co., capital balances are Adrienne $61,000 and Dino $79,000. The partners share income equally. Javier is admitted to the firm with a 40% interest by an investment of cash of $88,000. Journalize the admission of Javier. (Credit account titles are automatically Indented when the amount Is entered. Do not Indent manually. LUS all deblt entrles before credit entrles.) Account Titles and Explanation Debit Credit, Cash I 88,000 Adrienne, Capital Dino, Capital Javier, Capital