Blossom, Bubbles and Buttercup formed a partnership to which Blossom contributed a parcel of land with an acquisition cost of P 25,000. Bubbles contributed P50,000 cash and Buttercup P 75,000 cash. The land has a fair value of P 50,000 at the formation date. The total capital credit of the partnership should be * a. P 150,000 b. P 125,000 c. P 175,000 d. P 145,000
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- A & B formed a partnership. A contributed cash and land with a fair value of P60,000 and a book value of P50,000. B contributed P130,000 cash for 65% claim in the partnership's assets. Compute the amount of cash A should contribute.Charles Edulan, Corazon Tabarranza, and Henry Labasan are planning to form a partnership with Tabarranza contributing cash of P75,000 for a 1/5 interest in the partnership. Edulan and Labasan will share equally in the remaining required capitalization. 1. How much are the shares of Edulan and Labasan on the remaining capitalization the partnership? a. P75,000 each respectively b. P80,000 each respectively P150,000 each respectively d. P200,000 each respectively C. Solution: 2. How much is the total assets of the partnership upon formation? P300,000 P350,000 P375,000 a. b. C.A contribute P48,000 and B contributed P96,000 to form a partnership, and they agreed to share profits in the ratio of their original capital contributions. During the first year of operations, they made a profit of P32,580; A withdrew P10,100 and B P16,000. At the start of the following year, they agreed to admit C into the partnership. He was to receive a ¼ interest in the capital and profits upon payment of P60,000 to A and B, how much should A received from C? Please answer in good accounting form. Thank you
- A and B formed a partnership. A contributed cash of P50,000 and equipment with a cost of P40,000, accumulated depreciation of P15,000 and fair value of P30,000. The partnership assumed a liability associated to the equipment amounting to P10,000. How much should be credited to A, Capital account?Partner A and Partner B decided to form a partnership. Partner A invested the following: Cash of P500,000, Land costing P200,000 with an fair value of P600,000; building, costing P1,500,000 with accumulated depreciation of P500,000 but with fair market value of P850,000, and mortgage note payable of P200,000. The mortgage payable is to be assumed by the partnership. Partner B invested cash to give her 30% interest in the partnership. How much cash did Partner B invests?AL and DRIX decided to form a partnership. AL contributed P200,000 cash, equipment with a historical cost of P250,000 and fair value of P225,000, furniture with a historical cost of P150,000 and a fair value of P75,000 and P400,000 worth of parcel of land with a mortgage of P100,000. The partnership decided to assume the liability. Required: Answer the following 1. What is the capital balance of AL 2. Assuming DRIX will invest cash equivalent to AL’s net investment, how much is the capital balance of DRIX? 3. Assuming DRIX will invest cash equivalent to 20% of total partnership capital, how much is the capital balance of DRIX? 4. Using the assumption in number 3, how much is the total asset of the partnership after the contribution of AL and DRIX?
- 4. Roberts and Smith drafted a partnership agreement that lists the following assets contributed at the partnership's formation: Contributed by Roberts Smith $20,000 $30,000 15,000 40,000 Cash Inventory Building Furniture & Equipment 15,000 The building is subject to a mortgage of $10,000, which the partnership has assumed. The partnership agreement also specifies that profits and losses are to be distributed evenly. What amounts should be recorded as capital for Roberts and Smith at the formation of the partnership? Roberts Smith $35,000 $85,000 $35,000 $75,000 $55,000 $55,000 $60,000 $60,000 а. b. с. d.Mighty Darrel and Super Zigg formed a partnership and agreed to have an equal interest in thepartnership’s assets. They agreed to make the following contributions : Darrel contributed 100,000and Zigg contributed 84,000 in identifiable assets. Under the bonus approach, what is the amount ofbonus from Darrel to Zigg capital? A. 46,000B. 16,000C. 8,000D. 01. Mr. A. Mr. B and Mr. C agreed to form a partnership. Mr. A will contribute cash in the amount of P100,000; Mr. B will contribute land which originally cost P 500,000 with a fair Market value of P 1,000 and mortgage payable in the amount of P 200,000; and Mr. C contributed a brand new equipment amounting to P 300,000. Based on the following contributions. The total Partner's Equity is A. P 700.000 B. P 1.200.000 C. P1.600.000 D. P 1.400.000 2. A decrease in the capital of one or more partners with a corresponding increase in the capital of another(s), without cash being involved, is a transfer of interest called A. asset revaluation B. bonus C. appraisal D. goodwill
- Mr. A , Mr. B and Mr. C agreed to form a partnership. Mr. A will contribute cash in the amount of P100,000; Mr. B will contribute land which originally cost P 500,000 with a fair Market value of P 1,000 and mortgage payable in the amount of P 200,000; and Mr. C contributed a brand new equipment amounting to P 300,000. Based on the following contributions. The total Assets of the partnership is O P1.600,000 OP1.400.000 O P1.200,000 O P 700.000On March 1, 20x4, CC and FF formed a partnership with each contributing the following assets: CC FF Cash... P 30,000 P70,000 Machinery. 25,000 75,000 Building.. 225,000 ******* Furniture and fixtures... 10,000 The building is subject to a mortgage loan of P90,000, which is to be assumed by the partnership agreement provides that CC and FF share profits and losses 30 percent and 70 percent, respectively. On March 1, 20x4, the capital account of FF would showa balance of:Mr. A , Mr. B and Mr. C agreed to form a partnership. Mr. A will contribute cash in the amount of P100,000; Mr. B will contribute land which originally cost P 500,000 with a fair Market value of P 1,000 and mortgage payable in the amount of P 200,000; and Mr. C contributed a brand new equipment amounting to P 300,000. Based on the following contributions. The total Partner’s Equity is
