Reference no: EM132775062

Questions -

Problem 1 - The partners' capital (income-sharing ratio in parenthesis) of Fiona, Shrek, Donkey and Puss on May 31, 2014, was as follows: Fiona (20%), 60,000; Shrek (20%), 80,000; Donkey (20%), 70,000; Puss (40%), 40,000. On May 31, 2014, with the consent of Fiona, Shrek and Puss, Donkey retired from the partnership and was paid 50,000 cash in full settlement of his interest in the partnership. Determine the capital balance of Shrek after the retirement of Donkey assuming the bonus approach.

Problem 2 - Julia, Alpha and Ynes are partners who share profits and losses in a 5:3:2 ratios and on January 1 of the current year, have capital balances of 90,000, 160,000 and 200,000, respectively. Ynes withdrew from the partnership on July 1 of the current year and the partners agreed that, as of this date, certain inventory items would have to be revalued at 70,000 from their recorded cost of 50,000. For the 6-month period ending June 30 of the current year, the partnership realized a net income of 130,000. The partners decided that Ynes should be paid 245,000 for her interest. The payment to Ynes included bonus from remaining partners amounting to?