The partners in ABC
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The partners in ABC
| Cash | $11,000 | Liabilities | $6,600 | |
| Inventory | 5,500 | A, capital | 7,700 | |
| Equipment | 27,500 | B, capital | 13,200 | |
| C, capital | 16,500 | |||
| TOTAL | $44,000 | TOTAL | $44,000 |
The partners share income in a 2:3:5 ratio.
Now assume none of the inventory or equipment is sold, but the partners want to distribute $2,750 in cash to the partners. How much cash is distributed to partner B?
Select one:
a. $8,910
b. $2,310
c. $2,200
d. $0
Step by step
Solved in 3 steps
- .XYZ Partnership with partners X, Y, and Z decided to liquidate. At the date of liquidation, the partnership has cash of P150,000 and liabilities of P80,000. The capital balances of the partners are P80,000, P50,000, and P60,000 and divides profits and losses at 20:40:40. After the sale of noncash assets and payment of liabilities, the capital balances of the partners are P88,000, P66,000, and P76,000 respectively, and the cash remaining were then distributed. At what amount did the noncash assets were sold? a. P310,000 b. P220,000 c. P160,000 d. P120,000A B and C partnership shows the following profit and loss ratios and capital balances: A 60% 300000 B 30% 120,000 C 10% 50,000 The partners decided to sell D 20% of their respective capital and profit and loss interests for a total payment of 90,000. D will pay directly to the partners. If the partners agreed to revalue the assets prior to the admission of D, what is the capital balance of B after D's admission?The following condensed balance sheet is prepared for Sammy and Joker, who share profits and losses in the ratio of 60:40, respectively: Other assets P720,000 Sammy, loan 32,000 Total P752,000 Accounts Payable P192,000 Sammy, capital 312,000 Joker, capital 248,000 Total P752,000 Required: Choose the correct answer with solution. The partners have decided to liquidate the partnership. If the other assets are sold for P770,000, what amount of the available cash should be distributed to Sammy? a. P310,000 b. P312,000 c. P342,000 d. P390,000
- n the AB partnership, A's capital is P150,000 and B's capital P50,000 and they share income in a 1:4 ratio, respectively. They decided to admit C to the partnership. A and B agree that some of the inventory is obsolete. C contributed P50,000 for a 40% interest in capital and 30% in the profit/loss sharing. Determine the amount of inventory write-down.The Felton and Burchell Partnership has partner capital account balances as follows: Felton, Capital $550,000 Burchell, Capital 200,000 The partners share income and losses in the ratio of 60% to Felton and 40% to Burchell Santos invests $240,000 in the partnership for a one-third (1/3) interest in partnership capital. Required: How much would Felton lose from his capital, due to this transaction?The following balance sheet os for a local partnership in which the partners have become very unhappy with each other. To avoid further conflict, they have decided to cease operations and sell all assets. Cash 40,000 Liabilities 30,000 Land 130,000 Michael, capital 80,000 Building 120,000 Fernando, capital 30,000 Alvin, capital 60,000 JL, capital 90,000 Total 290,000 290,000 Assume that profits and losses are allocated on a 1:3:4:2 basis, repectively. How much money must be received from selling the land and building to assure that all partners are given cash?
- The Mac-Don-Ald Partnership is being liquidated. All liabilities have been paid and the remaining assets are being realized gradually. The equity of the partners is as follows: MAC: Capital $ 33,000, Loans Payable $7,000, P&L Ratio - 2; DON: Capital $42,000, P&L Ratio - 3; ALD: Capital $95,000, Loans Receivable $15,000, P&L Ratio - 5. Question : The second cash payment to any partner/s under program of priorities shall be made thus:The partnership which is being liquidated by installment method has a final cash balance of P100,000 after selling all the non-cash assets. The Profit and Loss ratio is 5:3:2. Partners' capital accounts are as follow: A, Capital - P70,000; B, Capital - P40,000; C, Capital - (P10,000). C is already insolvent. What is the distribution of cash to all the partners? a.) A - P33,333 B - P33,333 C - P33,333 b.) A - P50,000; B - P30,000; C - P20,000 c.) A - P50,000; B - P50,000; C - None d.) A - P63,750 B - P36,250 C - None SHOW COMPLETE SOLUTIONThe Felton and Burchell Partnership has partner capital account balances follows: Felton, Capital $550,000 Burchell, Capital 200,000 The partners share income and losses in the ratio of 60% to Felton and 40% to Burchell Santos invests $240,000 in the partnership for a one-third (1/3) interest in partnership capital. Required: How much would Felton lose from his capital, due to this transaction? (Note: write Vour ansuer
- An advantage of the partnership as a form of business organization would be A. Partners do not pay income taxes on their share in partnership income. B. A partnership is bound by the act of the partners. C. A partnership is created by the mere agreements of the partners. D. A partnership may be terminated by the death or withdrawal of a partner. Rose the Red Inc. has issued 200,000 shares of P1 par value ordinary shares at P12. If it repurchases 13,000 shares during 2019 at P14 profit would decrease by P26,000 shareholders' equity would decrease by P182,000 shareholders' equity would decrease by P26,000 profit would decrease by P156,000The following condensed balance sheet is presented for the partnership of Velarde, Soriano, and Villanueva, who share profits and losses in the ratio of 4:3:3, respectively: Cash P100,000 300,000 P400,000 Other Assets Total P150,000 40,000 180,000 30,000 P400,000 Liabilities Velarde, Capital Soriano, Capital Villanueva, Capital Total The partners agreed to dissolve the partnership after selling the other assets for P200,000. Upon dissolution of the partnership. Velarde should received in his retirement?Partners Shuka, Towyo&Fatis, who share profit and loss in the ratio of 3:5:2, respectively have decided to liquidate their partnership. The statement of financial position of the partnership at the time of liquidation is shown below cash 86,300 Accoutns Payable 58,000 other assets 303,700 Loans from Towyo 15,500 Shuka, Capital 93,000 Towyo, Capital 95,000 Fatis Capital 128,500. The partnership is to prepare an instalment distribution schedule showing how cash would be distributed to partners as assets are realized. In the schedule of cash priority program, the maximum absorbable loss for Shuka would be? In the schedule of cash priority program, the maximum absorbable loss for Fatis would be In the schedule of cash priority program, the maximum absorbable loss for Towyo would be