Question
I need help with these two accounting related questions, they also need computations, please. I already answered A of #2. 1) Benson and Orton are
I need help with these two accounting related questions, they also need computations, please. I already answered A of #2.
1)Benson and Orton are partners who share income in the ratio of 2:3 and have capital balances of $30,000 and $50,000 respectively. Ramsey is admitted to the partnership and is given a 10% interest by investing $20,000. What is Orton's capital balance after admitting Ramsey?
a)$20,000
b)34,000
c)44,000
d)56,000
2)After discounting the ordinary business operations and closing the accounts on January 7, 2016, the ledger of the partnership of Lola, Beba, and Fany indicated the following:
Cash $10,000
Noncash Assets 130,000
Liabilities $40,000
Lola,Capital 25,000
Beba,Capital 55,000
Fany,Capital 20,000
$140,000$140,000
The partners share net income and losses in the ratio of 3:3:6. In between January 7-31, the noncash assets were sold for $150,000, the liabilities were paid, and the remaining cash was distributed to the partners.
a)Prepare a statement of partnership liquidation at January 7 to 31.
b)Assume the same facts as in (a), except that the noncash assets were sold for $50,000 and any partner with a capital deficiency pays the amount of the deficiency to the partnership. Prepare a statement of partnership liquidation.
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