Reference no: EM132474976
Prepare entries assuming that:
Question 1: Rachel is paid P 16,000 in full settlement of the capital interest.
Question 2: Rachel is paid P9,600 in full settlement.
Genesis, Exodus and Leviticus have been partners in the kingdom building for 20 years. Exodus has decided to retire and wishes to withdraw from the partnership.
To facilitate Exodus retirement, the partnership closed its books and prepared the following statement of financial position:
|
Assets
Cash
|
P 424,000
|
Liabilities & Capital Accounts Payable
|
P 80,000
|
|
Accounts Receivable (net)
|
96,000
|
Genesis, Capital
|
200,000
|
|
Books
|
160,000
|
Exodus, Capital
|
320,000
|
|
Other Assets
|
120,000
|
Leviticus, Capital
|
200,000
|
|
Total
|
P800,000
|
Total
|
P800,000
|
Genesis, Exodus and Leviticus share profits and losses in the ratio of 4:4:2.
Required: Prepare the necessary journal entries on the books of the partnership to record the withdrawal of Exodus in each of the following situations:
Point 1. The partnership agrees that the books and other assets are undervalued by P48,000 and P32,000 respectively. Exodus is to receive a lump sum cash payment.
Point 2. Exodus is to receive P160,000 now and P144,000 in monthly installment of P16,000 each.
Point 3. Exodus is to receive P240,000 now and P24,000 at the end of each of the next 6 months.
|
ACF2200 - Introduction to Management Accounting Assignment
: ACC/ACF2200 - Introduction to Management Accounting Assignment Help and Solution - Monash University, Australia. Report for next executive management meeting
|
|
Research a payroll processing and outsourcing firm
: Discuss credible Internet sources, what are the pros and cons of outsourcing a company's payroll function? Research a payroll processing/outsourcing firm
|
|
Connection between marketing strategies and engagement
: What is the connection between marketing strategies and patient engagement and Who are the 'customers' of a hospital? Other health organizations
|
|
Social media can be a powerful communication channel
: Social media can be a powerful communication channel. Discuss any TWO opportunities and TWO pitfalls of these platforms. Support your answers with examples.
|
|
Prepare the necessary journal entries on the books
: Prepare the necessary journal entries on the books of the partnership to record the withdrawal of Exodus. Prepare Rachel is paid P9,600 in full settlement
|
|
Operating a transactional e-commerce site of choice
: Identify and discuss THREE macro-environment factors a company needs to monitor when operating a transactional e-commerce site of your choice.
|
|
BA214 Corporate Accounting Assignment
: BA214 Corporate Accounting Assignment Help and Solution, Melbourne Institute of Technology, Australia. Discuss the nature of a right issue
|
|
Identify the needs of vulnerable population
: Identify the needs of this vulnerable population such as shelter, education, food, clothing, health care, transportation, language skills, etc.
|
|
Determine and journalize the january transactions
: Determine and Journalize the January transactions? How do Journalize the adjustments pertaining to employee compensation at January 31.
|