User Account

All Pages

How much is the cash settlement to vvv

Assignment Help Financial Accounting
Reference no: EM132988962

Question - Erica and Paul, having capital balances of P980,000 and P525,000 respectively, decided to admit Jessica into their partnership. Jessica is to invest sufficient amount in order to have a 25% interest in the partnership. If Erica and Paul share profit in a proportion of 3:1 respectively, and Paul's capital balance after Jessica's investment is P589,750, how much was invested by Jessica?

On January 2, 2020, TTT, UUU and VVV formed a partnership with capital contribution of P625,000; P750,000 and P937,500 respectively. The partners agreed that profit and loss would be allocated as follows:- P75,000 salary to each partner.

- 3% interest on initial capital contributions.

- The remainder divided in the ratio 2:2:4, respectively.

The partnership generated income amounting to P375,000 for the year 2020. Errors were discovered before the distribution of profit:

- A purchase of piece of equipment costing P50,000 was expensed. The equipment has an estimated life of ten years with equal service potential each year.

- On December 31, 2020, ending inventory was understated by P50,000.

On January 2, 2021, VVV decided to retire from the partnership.

How much is the correct partnership income?

Using the same information in Number 16, how much is the share of UUU in the partnership income?

Using the same information in Number 16 and if the capital balance of TTT after retirement amounts to P770,000, how much is the cash settlement to VVV for his retirement?

Reference no: EM132988962

Questions Cloud

How much was invested by jessica : If Erica and Paul share profit in a proportion of 3:1 respectively, and Paul's capital balance after Jessica's investment is P589,750, how much was invested
Database and web server : Discuss why should the database and web server be installed on separate machines apart from the rest of the network?
Where in the continuous delivery pipeline do architects : Where in the Continuous Delivery Pipeline do architects align architecture to business objectives?
Network security plan and network security policy : Explain network security plan and network security policy and their differences.
How much is the cash settlement to vvv : Using the same information in Number 16 and if the capital balance of TTT after retirement amounts to P770,000, how much is the cash settlement to VVV
Ends customers marketing materials : These are a time keeping system, a billing system, and a customer mailing system that sends customers marketing materials.
Prepare the journal entries to record the acceptance : The global partnership by Peter and Sohn operated coffee shop in several cities. Prepare the journal entries to record the acceptance
Marketing plan milestone : What are the overarching benefits they have to offer the consumer? What do they offer that is different or attractive to the consumer?
Explain simpson paradox and provide an example : Choose five different charting techniques that are available for visualization and compare. Explain Simpson paradox and provide an example

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd