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profits and losses. Kim Jiwon contributed cash of P20,000 and equipment with a fair value of P100,000 for a 25% interest in capital and a
profits and losses. Kim Jiwon contributed cash of P20,000 and equipment with a fair value of P100,000 for a 25% interest in capital and a 35% share in profits and losses. After the admission, the Parks made settlement among themselves so that their capital will conform with the new ratios provided. The bonus method is used to account the admission of the Kims. 30. The new profit and loss ratio immediately after the admission of the Kims will be 31. The capital balance of Park Minyoung that conform to the capital ratio is Problem 17 The partnership of Ira, Lana, and Aira have capital account balances as: Ira, P35,000; Lana, P50,000; Aira, P40,000. Their profit and loss ratios are 30%, 50%, and 20%, respectively. With the consent and knowledge of Ira and Lana, Aira sold her interest to Lian for P50,000. Aira was paid in cash. 32. Lana's new capital balance at Aira's retirement will be Problem 18 The following balances were taken from the books of Catleen's, Ann Louise's, and Tracey's partnership on December 31, 2013: Catleen, Capital - P200,000; Catleen, Loan - P50,000; Ann Louise, Capital - P120,000; Ann Louise, Loan - P20,000 debit; Tracey, Capital - P60,000. The partners share profits and losses in the ratio 4:3:3. Tracey decided to withdraw from the partnership on April 1, 2013 after suffering from financial problems. In the first quarter of 2013, the partnership made a profit of P54,000. The partners agreed to make the following adjustments to their assets to bring the balances to their fair value before the withdrawal of Tracey: Allowance for uncollectible accounts of P20,000 should be provided. Inventories are to be reduced by P25,000. The partnership paid Tracey her interest plus 20% premium based on her adjusted capital for her contribution in the successful operation of the firm. 33. How much did Tracey receive from her retirement? Problem 19 Rojean, Vielka, and Marie formed a partnership. On December 31, 2013, the firm had the following balances: Total Assets - P100,000; Rojean, Loan - P9,000; Rojean, Capital - P15,000; Vielka, Capital - P31,000. The partners divide profits with a ratio of 4:3:3. Rojean is retiring from the partnership. By mutual agreement, the assets are to be adjusted to their fair value of P130,000 at October 31, 2013. Vielka and Marie agreed that the partnership will pay Rojean P37,000 cash for her partnership interest, exclusive of her loan which is to be paid in full
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