S, K and P are in a Partnership business as Machinery Manufacturers. They share Profits as 4:3:3. The following Balances was extracted on December 31, 2021. Particulars Cash at Bank Purchase of Raw Material Discount (Dr) Rent and Insurance Factory Expenses Office Expenses Sundry Debtors Furniture Telephone Opening stock of Raw Material Carriage inwards Particulars 25,760 Capital Accounts 1,200,000 54,400 36,960 Commission Received. 152,000 Sundry Creditors 9,600 Sales 51,200 25,600 2,400 94,400 384,000 SHP 92,800 54,400 51,200 19,200 100,800 2,080,000
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- Q7 Prepare common size Balance Sheet of XRI Ltd. from the following information: Particulars I. Equity and Liabilities 1. Shareholders' Fund a) Share capital b) Reserves and surplus 2. Non-current liabilities Long-term borrowings 3. Current liabilities Trade Payable Total II. Assets 1. Non-current assets a) Fixed assets - Tangible asset Total Plant & machinery - Intangible assets Goodwill b) Non-current investments 2. Current assets Inventories Note No. March 31, 2016 15,00,000 5,00,000 6,00,000 14,00,000 March 31, 2017 16,00,000 10,00,000 12,00,000 5,00,000 15,50,000 10,50,000 41,50,000 32,50,000 5,00,000 8,00,000 12,00,000 10,00,000 1,50,000 2,50,000 41,50,000 32,50,000QUESTION 7 Eden and Stein were in partnership, sharing profits and losses in the ratio 2:1. Their abridged statement of financial position as at 31 March 20x5 was: ASSETS Equipment at carrying value Vehicles at carrying value Inventory Accounts receivable Bank | EQUITY & LIABILITIES 5,600 Capital: E Eden 1,400 3.500 Current accounts: E Eden 6,500 1,500 Long - term borrowings Accounts payable 5,000 4,000 2,000 (1,000) 3,000 5,500 18.500 S Stein S Stein 18.500 • The partnership was sold to Diamond Ltd as a going concern. The company was incorporated with a registered capital of 20,000 ordinary shares of N$1 each. The partnership paid N$450 and Diamond Ltd NS1000 for expenses for the transfer. The agreement was as follows: 1. Eden would take over one vehicle at book value, that is, N$800, and Stein would take over the other vehicle at N$1.100. 2. Diamond Ltd would take over all assets and liabilities with the exception of bank and vehicles. 3. The assets were taken over at these valuation…Question # 02A, B and C were partners. They share profit and losses in the ratio of 2:1:2. Their balance sheet was as under:AssetsCash and Bank Accounts Receivable Merchandise InventoryFurniture and FixtureEquities33,000 Accounts Payable 29,000 Notes Payable 26,000 A’s Capital24,000 B’s Capital C’s Capital112,0004,000 8,000 40,00020,000 40,000 112,000The partner decided to dissolve the firm.Required:Given entries in general journal to record the dissolution of the firm considering the following transaction.a) Cash Rs. 25,000 was collected from debtors in full settlement.b) Cash Rs. 72,000 received from the sale of inventory and furniture and fixture.c) Paid off the liabilities in full.d) All the available balance of cash after considering the above transaction distributed among thepartners.
- Financial statement analysis 2. Given below are the summarized accounts of Belper Ltd for the past five years. These the basis for the questions which follow. Summarized profit and loss accounts of Belper Ltd Sales Cost of sales Trading profit Depreciation Interest Net profit before tax Taxation Net profit after tax Extraordinary items Dividends Retained profits Retained at start of year Retained at end of year Fixed assets Freehold land and buildings Leasehold land and buildings Plant and machinery Total gross fixed assets Depreciation freehold Depreciation leasehold Depreciation plant, etc. Total depreciation Net fixed assets Intangible fixed assets Goodwill Investments Patents and trade marks Current assets Stock Debtors Bank and cash Current liabilities Creditors Taxation Dividends Bank loans and overdraft 19X4 Net current assets £000 Financed by Ordinary share capital Share premium account Retained profits Revaluation reserves 93,930 81,750 12,180 1,023 2,727 8,430 2,517 5,913…9- Which one of the following item will be debited in profit and loss appropriation account? a. Interest on drawings b. Interest on loan c. Interest on deposits d. Bonus to partnersreceivable Debt 570 Retained Earnings XXX 331 Payables to Partners Hs. XXX 540 Legal Reserves Hs. XXX Which transaction does the journal entry belong to? A) Payment of dividends to partners B) Distribution of Net Profit C) Accrual of corporate tax D) Payment of tax debt from bank account E) Withholding income tax
- Y:". f | %07 aAsiacell K/s نقطة واحدة If it is required to maintain fixed capitals, then the partners' shares of profits must be Debited to capital accounts Credited to capital accounts Credited to partners' current accounts Debited to partners' current accounts نقطة واحدة If we take goods for own use, we should Debit Purchases Account: Credit Drawings Account Debit Drawings Account: Credit Stock Account, Debit Sales Account: Credit Stock Account Debit Drawings Account, Credit Purchases AccountQUESTION 23. * X, Y; and Z were in partnership sharing profits or losses as follows; X 0.40, Y 0.35 and Z 0.25 Statement of financial position as at 31/12/2011 TZS “000" Non current assets Premises 37,500 Plant & Machinery ( note 1) 26,000 63,500 Current assets Inventory 21,000 14,000 33,500 68,500 Debtors Bank Total assets 132,000 Capital and liabilities Capital accounts 45,000 25,000 X Y 15,000 85,000 Current accounts 6,000 4,000 Y 3,000 Loan: Y 15,000 Creditors 19,000 47,000 Total capitals and liabilities 132,000 Y retired on 31/12/2011 and X and Z continues in partnership sharing or losses 0.6 and 0.4 respectively. Half of Y' S loan was repaid on 1/1/2012 and it was also agreed that TZS 40,000,000 of the balance remaining due to him should remain as a loan to the partnership It was also agreed that adjustments were to made to the statement of financial position on 31/12/2011 in respect of the following. v a) Plan & machinery was revalued at TZS 29,000,000 and premise also revalued…k The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torves, Capital Total Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances/loss percent) Decrease highest LAP to next highest Debit $ 7,808 34,000 24,808 99,908 Decrease LAPs to next highest: $ 164,908 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 25 percent; and Torves, 25 percent. 3. The partners are considering an offer of $110,000 for the firm's accounts receivable, inventory, and plant and equipment as of June 30. The $110,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated. Required: Prepare a cash distribution plan as of June 30, 20X1,…
- 57 On December 31, 20x20, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 6:1:3 of partners A, B and C respectively, revealed the following data: Cash P1,000,000 Other liabilities P2,000,000 Receivable from A 500,000 Payable to B 1,000,000 Other noncash assets 2,000,000 Payable to C 100,000 A, Capital 700,000 B, Capital (650,000) C, Capital 350,000 On January 1, 20x21, the partners decided to liquidate the partnership. All partners are legally declared to be personally insolvent. The other noncash assets are sold for P1,500,000. Liquidation expenses amounting to P100,000 were incurred. How much cash was received by C at the end of partnership liquidation?28--Service revenue received in advance before work has been performed is an example for: a. Accrued revenue b. Unearned revenue c. Outstanding expense d. Prepaid expense 26-Salary expense has been incurred but not yet paid to employees will be: a. Added to partners' capital b. Added to corresponding expense in the income statement c. Added to share of profits of partners d. Added to current assets in the balance sheet Clear my choiceProblem #4 Admission by Investment of Assets Resulta and Magpantay are partners sharing profits on a 60:40 ratio. A statement of financial position prepared for the partners on April 1, 2019 follows: Cash P 480,000 Accounts Payable P 890,000 1,330,000 Accounts Receivable 920,000 1,650,000 Resulta, Capital Inventories Magpantay, Capital 1,080,000 Equipment P700,000 Less: Accumulated Depreciation 450,000 250,000 P3,300,000 Total Assets Total Liabilities & Capital P3,300,000 On this date, the partners agreed to admit Tria as a partner. The terms of the agreement are summarized below: Assets and liabilities are to be restated as follows: a. An allowance for possible uncollectibles of P45,000 is to be established. b. Inventories are to be restated at their present replacement value of P1,700,000. C. Accrued expenses of P40,000 are to be recognized. Resulta, Magpantay and Tria will divide profits in the ratio of 5:3:2. Capital balances of the partners after the formation of the new…