J.K. SHAHCLAS SESCA FOUNDATION- ACCOUNTANCYRequired:Prepare necessary journal entries.Q.4 Calculate gain ratio in following casesCase -1A. B and C are partners sharing profits and losses in the ratio of 1/2, 3/10 and1/5 respectively. B retires from the firm and A&C decide to share future profits andlosses in the ratio of 3:2.Case-2W, A, B and C are partners sharing profits and losses in the ratio of 1/3, 1/6, 1/3and 1/6 respectively. B retires and W, A and C decide to share future profits andlosses equally.Case-3B and C are partners sharing profits and losses in the ratio of 25:15:9. Bretires and it is decided that profit sharing ratio between A&C will be the same asexisting between B and C.Case-4A, B and Care partners sharing profits and losses in the ratio of 4/9, 1/3 and 2/9.B retires and surrenders 1/9th of his share in favour of A and remaining in favourof C.Q.5 A partner's loan stands at ? 30,000 being amount payable to partner onretirementand that it has to be paid in four annual equal installments andthat the loan is to carry interest at 6% per annum. Prepare loan account ofretiring partner for four years.0.6 K, L & M are partners sharing pro-fits and losses in the ratio 5:3:2. Due to illness,L wanted to retire from the -firm on 31.3.2015 and admit his son N in his place.159

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A B and C are partners sharing profits and losses in the ratio of 1/2, 3/10 and 1/5 respectively. B retires from the firm and A&C decide to share future profits and losses in the ratio of 3:2.

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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Accounting A, B and C had capital balance of : A,$150,000; B, 120,000 and C, 200,000, profit sharing ratio: 1:2:3. A decides to retire. A is paid 180,000 and goodwill of all partners is recorded (problem 5 related ) true or false in the journal entry of A’s retirement, the goodwill account will be debited with $ 60,000. (problem 5 related) Assume that B acquired C’s capital in a personal transaction and paid him $ 180,000. After this transaction the balance in B’s Capital Account will be ?
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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 Torven, Capital Total Debit $ 7,200 38,000 27,000 98,400 Profit and loss percentages Preliquidation capital balances $170,600 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 $112,000 for the firm's accounts receivable, inventory, and plant and equipment as of June 30. The $112,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated. Decrease LAPs to next highest Credit Required: Prepare a cash distribution plan as of June 30, 20X1, showing how much cash each partner will receive if the partners accept the offer to sell…
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