Mr. Jackie Chan and Mr. James Bond are partners who shared profit and losses on an arbitrary
Question:
Mr. Jackie Chan and Mr. James Bond are partners who shared profit and losses on an arbitrary ratio of 3:2. Mr. Jet Lee was admitted into the partnership by buying 1/4 and 1/2 of the respective old partners interests in the partnership. The partners capital balances before the purchase were as follows:
J. Chan200,000
J. Bond250,000
Required:
- Determine each of the partners' capital balances after the admission assuming Jet Lee pays 200,000.
Chan_______Bond_______Lee_______
Problem 2.
The capital accounts for the partnership of Joselito Villarta and Rene Cason at October 2009 are as follows:
Villarta, Capital240,000
Cason, Capital120,000
TOTAL360,000
The partners shared profits and losses in the ratio of 6:4, respectively.
The partnership is desperately in need of cash and the partners agree to admit Maria Cruz as a partner with 1/3 in the capital and profits and losses upon investment of 30,000.
Required: Capital Account balance after admission of Cruz
Villarta__________Cason_______
Problem 3.
Edna Ursal and Cleofe Rosales who shared profits and losses in the ratio of 3:7 admitted Dandan Cal by letting the latter invest cash in the partnership. The respective capital balances of the partners were 240,000 for Ursal and 300,000 for Rosales. Cal invests cash of 210,000 for a 40% interest in the new firm interest of 750,000.
Assuming that Cal invests cash of 450,000 for a 35% interest in the new firm capital of 990,000, how much is the amount of bonus_______
Problem 4.
The condensed statement of financial position is provided for Alvaro and Ampil Company, immediately prior to its liquidation:
Cash 200,000
Non cash assets 100,000
Liabilities20,000
Alvaro, Capital100,000
Ampil, Capital180,000
If non cash assets are sold for 180,000 and Alvaro and Ampil share profits and losses equally, what will be the final cash distribution to Alvaro?
Expert Answer:
Answer Problem 1 Given J Chans capital balance P200000 J Bonds capital balance P250000 Profit and loss sharing ratio 32 Jet Lee buys 14 of J Chans interest and 12 of J Bonds interest for P200000 Step ... View the full answer
