Question 1 Baba, Fafa, and Sasi who share income and loss in a 2:2:1 ratio, decide...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 1 Baba, Fafa, and Sasi who share income and loss in a 2:2:1 ratio, decide to liquidate their partnership. At the time of liquidation, their statement of financial position appears as follows. Assets Cash Equipment Land Total assets Baba, Fafa and Sasi Statement of Financial Position 31 January 2023 Liabilities and Equity RM 150,000 Accounts Payable 200,000 Baba, Capital 400,000 Fafa, Capital Sasi, Capital RM750,000 Total liabilities and equity RM 221,500 210,000 178,000 140,500 RM750,000 Instruction: Prepare journal entries for (a) the sale of land and equipment sold as a package for RM500,000, (b) the allocation of the gain or loss, (c) the payment of the liabilities, and (d) the distribution of cash to the individual partners. Question 1 Baba, Fafa, and Sasi who share income and loss in a 2:2:1 ratio, decide to liquidate their partnership. At the time of liquidation, their statement of financial position appears as follows. Assets Cash Equipment Land Total assets Baba, Fafa and Sasi Statement of Financial Position 31 January 2023 Liabilities and Equity RM 150,000 Accounts Payable 200,000 Baba, Capital 400,000 Fafa, Capital Sasi, Capital RM750,000 Total liabilities and equity RM 221,500 210,000 178,000 140,500 RM750,000 Instruction: Prepare journal entries for (a) the sale of land and equipment sold as a package for RM500,000, (b) the allocation of the gain or loss, (c) the payment of the liabilities, and (d) the distribution of cash to the individual partners.
Expert Answer:
Answer rating: 100% (QA)
To solve this problem we need to follow the steps of liquidating the partnership a The sale of land ... View the full answer
Related Book For
International Financial Reporting and Analysis
ISBN: 978-1408075012
5th edition
Authors: David Alexander, Anne Britton, Ann Jorissen
Posted Date:
Students also viewed these accounting questions
-
Question 23A: Flexible Budget & Variance Analysis Six months ago, UniJam established an office in Ocho Rios to make and sell dentures under the name, UniJam Dentals. Its annual budget was drawn up by...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Partners Pam, Louie and Kyo, who share profit and loss in the ratio of 3:5:2 respectively have decided to liquidate their partnership and use priority program. The statement of financial position of...
-
Melissa is a sole trader. Her capital gains and capital losses for 2020-21 are 27,000 and 700 respectively. She has capital losses brought forward from 2019-20 of 12,900 and she also has unrelieved...
-
Find the third order Taylor polynomials for the following function. f(x) = 4x2 + 3x + 1 for x near 1.
-
A 140- lossless line is terminated in a load impedance ZL = (280 + j182) . If = 72 cm, find (a) the reflection coefficient , (b) the voltage standing-wave ratio S, (c) the locations of voltage...
-
Travis Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost \($140,000\) and have an estimated useful life of 5 years. It will be sold for...
-
Why is an accurate and complete requirements definition especially critical when using the SDLC waterfall approach?
-
Solve. Several different bus routes stop at the corner of Second St. and Lincoln Ave. A Wilkenson bus arrives every 33 minutes, a Fifth Avenue bus arrives every 21 minutes and a Harris Road bus...
-
Job Order Costing Completing this activity will help you learn to: Determine amounts in a job order cost accounting system for a manufacturing business. Extract information from a data set using...
-
When iron metal reacts with sulfuric acid, it produces iron (III) sulfate and hydrogen gas. Balance the equation: Fe + H2SO4 Fe2(SO4)3 + H2 Describe why it is necessary to balance chemical...
-
_____ answers the question, Did we do the right things? It is a function of getting the job done whenever and however it must be done.
-
_____ is a division or department that generates monetary returns for the organization.
-
_____ is the extent to which a test measures what it claims to measure.
-
_____ is a division or department within an organization that brings in no revenue or profit; in other words, it costs money for the organization to run this function.
-
_____ are workers who use their head more than their hands to gather and interpret information to improve a product or process for their organizations.
-
Profit margins for A and B.. Diet Health Foods Inc. has two divisions. Division A has a profit of $133,000 on sales of $2,010,000. Division B is able to make only Book $25,600 on sales of $300,000....
-
For Problem estimate the change in y for the given change in x. y = f(x), f'(12) = 30, x increases from 12 to 12.2
-
HS, a contractor, signed a two year fixed price contract on 31 March 2008 for $300 000 to build a bridge. Total costs were originally estimated at $240 000. At 31 March 2009, HS extracted the...
-
The statement of comprehensive incomes for Home and its wholly owned subsidiary Foreign for the year ended 31 July 2006 are shown below: 1. The presentation currency of the group is the $ and...
-
In which industries would you expect inventory turnover to be lower, in which industries would you expect this ratio to be higher? Comment on this (discuss this in relation to asset turnover also).
-
Assume that United Technologies Corporation is evaluating a proposal to change the companys manual design system to a computer-aided design (CAD) system. The proposed system is expected to save...
-
In 2008 the City of Chicago agreed to lease 35,000 parking meters to a Morgan Stanley-led partnership Morgan Stanley for a one-time sum of \($1.15\) billion. The lease has been criticized as an...
-
Pure White Automatic Laundry must either have a complete overhaul of its current dry-cleaning system or purchase a new one. Its cost of capital is 18 percent. Pure Whites accountant has developed the...
Islamic Finance A Study Of Malaysian Banks From 1999-2006 1st Edition - ISBN: 3659400424 - Free Book
Study smarter with the SolutionInn App