3) X and Y are partners sharing profit and losses at 2/5 and 3/5 respectively. They decided to admit Z as new partner. The new partner decides to pay OMR10,000 for his share of goodwill OMR10,000 to the partnership. Which of the following accounting entries should be done in partnership books: A) Debit goodwill account by OMR10,000 B) Credit Y capital account by OMR4,000 C) Debit Z capital account by OMR6,000 D) None of the above

3) X and Y are partners sharing profit and losses at 2/5 and 3/5 respectively. They decided to admit Z as new partner. The new partner decides to pay OMR10,000 for his share of goodwill OMR10,000 to the partnership. Which of the following accounting entries should be done in partnership books: A) Debit goodwill account by OMR10,000 B) Credit Y capital account by OMR4,000 C) Debit Z capital account by OMR6,000 D) None of the above

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations

Section: Chapter Questions

Problem 47P

See similar textbooks

Similar questions

When a partnership dissolves, the first step in the dissolution process is to ________. A. allocate the gain or loss on sale based on income sharing ratio B. pay off liabilities C. sell noncash assets D. divide the remaining cash among the partners
When a partnership dissolves, the last step in the dissolution process is to ________. A. allocate the gain or loss on sale based on income sharing ratio B. pay off liabilities C. sell noncash assets D. divide the remaining cash among the partners
X and Y are partners with capital account balances of P 600,000 each and share profits and loss equally Z is allowed to purchase of the interest of X by paying P 200,000. The partners further agreed to record asset revaluation before the admission of Z. By how much would the new partnership net assets change as the result of asset revaluation? Place a parenthesis if your answer is decrease
Problem-solving Admissionby Purchase of Interest or Investment of AssetsAngeles. Bondoc and Campos have equities in a partnership as follows: Angeles 300,000 Bondoc 750,000 Campos 700.000 and share of profits and losses in a ration of 5.3.2, respectively. The partners have agreed to admit Dantes to the partnership REQUIRED Prepare the journal entries to record the admission of Dantes to the partnership under each of the following assumptions.1. Dantes paid Angeles P450.000 for his full interest 2. Dantes invested P500,000 for a 25% interest, and bonus is recorded for Dantes 3 Dantes invested P600,000 for a 20% interest, and bonus is recorded for the old partners.
1) C is admitted in the partnership of A and B by investing P120,000 for an interestequal to P150,000. Assuming that the net assets of the partnership prior to C'sadmission are fairly valued, this transaction would result in A. a decrease of P30,000 in the total partnership assets B. a decrease in the capital balances of A and B C. an increase in the capital balances of A and B D. the recognition of goodwill by the partnership 2) A partnership records the admission of a new partner through purchase of interest bycrediting the purchaser's capital and debiting A. capital account of other partners B. bonus account C. cash account D. capital account of the selling partner
2 A and B agreed to form a partnership. A shall contribute P80,000 cash while B shall contribute 200.000 cash. However due to the expertise that A will be bringing to the partnership thepartners agreed that they should initially have an equal interest in the partnership capitaRequirement Using the bonus method, provide the journal entry to record the initial investments ofthe partners.
1) A partner may be admitted into a partnership by I. Investing assets in the partnership II. purchasing a partner's interest III. contributing his/her services I, II or III I only II only I and III 2) X retired from the partnership of X, Y and Z. X received an amount in excess of his capital balance in settlement of his equity. All assets of the partnership are fairly valued. Under these circumstances, a. the partnership shall recognize goodwill b. the partnership shall recognize an expense c. the capital balances of Y and Z would decrease d. the capital balances of Y and Z would not be affected 3) A partner may withdraw or retire from the partnership by a. selling his interest to an outsider b.payment of his interest from partnership funds c. selling his interest to one or more of the…
1) A partner may withdraw or retire from the partnership byA. selling his interest to an outsiderB.payment of his interest from partnership fundsC. selling his interest to one or more of the remaining partnersD. any of the above 2) X retired from the partnership of X, Y and Z. X received an amount in excess of his capital balance in settlement of his equity. All assets of the partnership are fairly valued. Under these circumstances,A. the partnership shall recognize goodwillB. the partnership shall recognize an expenseC. the capital balances of Y and Z would decreaseD. the capital balances of Y and Z would not be affected 3) A partner may withdraw or retire from the partnership byA. selling his interest to an outsiderB. payment of his interest from partnership fundsC. selling his interest to one or more of the remaining partnersD. any of the above
(All partners sacrifice) : A and B partners sharing profits and losses in the ratio of 3:2. They admit C into partnership for 1/4 share in profits. C’s brings $ 3,00,000 as capital and $ 1,00,000 as goodwill. New profit sharing ratio of the partners shall be 3:3:2. Pass necessary Journal entries.
A written Partnership Agreement states: Partner A is to contribute capital of $20,000 and devotes full time work to the partnership. Partner B is to contribute capital of $30,000 and devotes half time work to the partnership. Therefore, in what ratio is net income to be divided? Group of answer choices a) 1:2 b) 3:5 c) 2:3 d) 1:1
this is partnership fomation 1. the asset contribution of the partnership, and any related liabilities assumed by the partnership, are recorded in the partnership a. historical cost b. carrying amount c. fair value. 2. A and B agreed to form a partnership. A contributes cash, 600,000, inventory 20,000, half if the inventory is unpaid, the partnership agreed to assume the related accounts payable, equipment 50,000. B contributes a land amounting to 400,000 which has a fair value of 700,000. The land is subject to a mortgage 100,000. B agreed to settle the mortgage personally. how much are the adjusted capital contributions of A and B, respectively a. 660,000; 700,000 b. 670,00; 700,000 c. 670,000; 690,00 d. 670,000; 600,000
After C’s admission, the partners agreed to adjust their capital balances to reflect their’ respective interests in the partnership’s net assets. Cash settlement is to be made between the partners. How much is the cash settlement? a) There would be no cash settlement between the partners. b) 34,288 payment of C to A and B c) 43,188 payment of B to A d) 43,188 payment of A to B