is any one can help me in solving these problem.thank you and may GOD blees u always.
Problem Solving:
1. Xiat is a partner who used the stock of the firm worth Php 10,000 and suffered a loss of
Php 2,000. He went the firm to bear the loss. How much ‘Xiat’ is liable to pay to firm.
2. The partnePhp of a firm is planning to distrubute profits for the year ended 31st March 200x Php 3,00,000 equally without providing for the following adjustments:
(i) See and Ria were entitled to a salary of Php. 5,000 per annum.
(ii) Negrita was entitled a Commission of Php 5,000
(iii) See and Ria had guaranteed a minimum profit of Php 1,20,000 per annum to
Negrita
(iv) Profit were to be shared in the ratio of 2:2:1
Prepare necessary journal entries.
3. Prior to the distribution of cash to the partners, the accounts in the NJF Company are: Cash $28,000, Newell Capital (Cr.) $17,000, Jennings Capital (Cr.) $15,000, and Farley Capital (Dr.) $4,000. The income ratios are 5:3:2, respectively.
Instructions
(a) Prepare the entry to record (1) Farley’s payment of $4,000 in cash to the partnership and (2) the distribution of cash to the partners with credit balances.
(b) Prepare the entry to record (1) the absorption of Farley’s capital deficiency by the other partners and (2) the distribution of cash to the partners with credit balances.
4. Assume that partners Mori, Ned, and Odan have capital balances of $25,000, $15,000, and $10,000, respectively. Mori and Ned agree to buy out Odan’s interest. Each of them agrees to pay Odan $8,000 in exchange for one-half of Odan’s total interest of $10,000.
The entry to record the withdrawal is:
5. Assume that the following capital balances exist in the RST partnership: Roman $50,000, Sand $30,000, and Terk $20,000. The partners share income in the ratio of 3:2:1, respectively. Terk retires from the partnership and receives a cash payment of $25,000 from the firm.
A bonus is paid to the retiring partner since the cash paid to the retiring partner is more than his/her capital balance. (5pts)
Allocate the bonus to the remaining partners on the basis of their income ratios.
atoron o perigon matematico
Sure, I can help you solve these problems. Let's go through each one step by step:
1. In this problem, we need to find out how much 'Xiat' is liable to pay to the firm. Xiat used the stock of the firm worth Php 10,000 and suffered a loss of Php 2,000. Since Xiat wants the firm to bear the loss, he needs to pay back his share of the loss to the firm. To calculate his liability, we can use the formula:
Liability = (Loss / Total Stock) * Partner's Stock
Substituting the given values, we get:
Liability = (Php 2,000 / Php 10,000) * Php 10,000
Simplifying this equation, we find:
Liability = Php 2,000
So Xiat is liable to pay Php 2,000 to the firm.
2. In this problem, we need to prepare the necessary journal entries for distributing profits among the partners, while considering the adjustments mentioned. First, we need to calculate the adjusted profit for distribution. Let's go through the adjustments:
(i) Salary for See and Ria: The total salary for See and Ria is Php 5,000 per annum. Since the profits are for the whole year, the salary amount needs to be deducted from the total profit. Adjusted Profit = Profit - Salary
(ii) Commission for Negrita: The commission amount of Php 5,000 needs to be deducted from the adjusted profit. Adjusted Profit = Adjusted Profit - Commission
(iii) Guaranteed Profit for See and Ria: The guaranteed profit of Php 1,20,000 needs to be distributed equally among See, Ria, and Negrita. Adjusted Profit = Adjusted Profit - Guaranteed Profit
(iv) Sharing Ratio: The remaining adjusted profit needs to be distributed among the partners in the ratio of 2:2:1.
Once we have the adjusted profit, we can prepare the journal entries for distributing it among the partners.
3. In this problem, we have to prepare journal entries for recording the distribution of cash to the partners based on their income ratios. The initial account balances provided are Cash $28,000, Newell Capital (Cr.) $17,000, Jennings Capital (Cr.) $15,000, and Farley Capital (Dr.) $4,000. The income ratios are 5:3:2, respectively.
(a) To record Farley's payment of $4,000 in cash to the partnership and the distribution of cash to the partners with credit balances, we need to debit the Cash account and credit the Capital accounts of the partners.
(b) To record the absorption of Farley's capital deficiency by the other partners and the distribution of cash to the partners with credit balances, we need to debit the Capital accounts of the partners and credit the Cash account.
4. In this problem, we have to record the entry for the withdrawal of Odan from the partnership. Mori and Ned agree to buy out Odan's interest by paying him $8,000 each. Since Odan's total interest is $10,000, the total amount paid by Mori and Ned is $16,000. The entry to record this withdrawal would involve debiting Mori and Ned's Capital accounts and crediting Odan's Capital account for the amount paid.
5. In this problem, we have to allocate the bonus paid to the retiring partner (Terk) to the remaining partners based on their income ratios. The capital balances in the RST partnership are Roman $50,000, Sand $30,000, and Terk $20,000. The income ratios are 3:2:1, respectively. Terk retires and receives a cash payment of $25,000 from the firm, which is more than his capital balance.
To allocate the bonus, we need to calculate the total bonus paid to Terk, which is the difference between the cash payment and Terk's capital balance. The bonus is then divided among the remaining partners based on their income ratios. We can calculate the bonus for each partner by multiplying the total bonus by their respective income ratios.
I hope this helps you solve the problems. If you have any further questions, feel free to ask!