Presented below is the condensed balance sheet of the partnership of Aballa, Baligod, and Cabasag who share profits and losses in the ratio of 6:3:1, respectively: Cash P276,250 Liabilities 1,348,750 Aballa, capital Baligod, capital Cabasag, capital P260,000 Other assets 819,000 409,500 136,500 P1,625,000 Total P1,625,000 Total The partner agree to sell Dalisay 20% of their respective capital and profit and loss interest for a total payment of P292,500. The payment by Dalisay is to be made directly to the individual partners. The capital balance of Aballa Baligod, and Cabasag respectively after admission of Dalisay are:

Presented below is the condensed balance sheet of the partnership of Aballa, Baligod, and Cabasag who share profits and losses in the ratio of 6:3:1, respectively: Cash P276,250 Liabilities 1,348,750 Aballa, capital Baligod, capital Cabasag, capital P260,000 Other assets 819,000 409,500 136,500 P1,625,000 Total P1,625,000 Total The partner agree to sell Dalisay 20% of their respective capital and profit and loss interest for a total payment of P292,500. The payment by Dalisay is to be made directly to the individual partners. The capital balance of Aballa Baligod, and Cabasag respectively after admission of Dalisay are:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A, B and C are in partnership sharing profits and losses at the ratio of 5: 3:2. The balance sheet of the firm on 31.12.2021 was as follows: Liabilities Capital A/cs A B C Bank Loan Trade payables Balance Sheet Assets Sundry Fixed Assets Inventories 50,000 40,000 Trade receivables 30,000 Joint Life Policy 40,000 Bank 30,000 1,90,000 80,000 50,000 30,000 20,000 10,000 1,90,000 On 1.1.2022, A wants to retire, B and C agreed to continue at 2:1. Joint Life Policy was taken on 1.1.2016 for 1,00,000 and its surrender value as on 31.12.2021 was 25,000. For the purpose of A's retirement goodwill was raised for ₹1,00,000. Sundry Fixed Assets was revalued for 1,10,000. But B and C did not prefer to show such increase in assets in the Balance Sheet. Also they agreed to bring necessary cash to discharge 50% of the A's claim, to make the bank balance 25,000 and to make their capital proportionate. Prepare necessary journal entries.
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Item Nos. 3 to 5 are based on the following information: After the realization of noncash assets, the following account balances appeared in the general ledger of the partnership of See, Chap, and Pwe: P 10,000 Cash 30,000 Liabilities 5,000 Pwe Loan- 15,000 See Capital- 10,000 Chap Capital- 10,000 Pwe Capital- Profits are shared 2:4:4 for See, Chap, and Pwe, respectively. Pwe is insolvent. 3. How much was the loss on realization? C. P 70,000. a. P 50,000. d. P 80,000. b. P 60,000. 4. How much did See receive in the liquidation? C. P 5,000. a. PO. d. P 15,000. b. P 3,000. 5. How much additional investment did Chap make? a. P 10,000. C. P 15,000. b. P 14,000. d. P 20,000.
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