What is the total capital of MD after retirement of VL

Reference no: EM132668132

Problem 1: PV, BK and TF were partners in Omaha Partnership. Their profit ratio is 50%, 30%, 20%, while their original capital interest ratio is 4:4:2. On July 1, 2014, JP was admitted by the partnership for 20% interest in capital and 25% in profits by contributing P87,500 cash, and the old partners agree to bring their interest to their original capital and profit interest sharing ratio. JP is the recipient of the transfer of capital of P280,000 from the existing partners. The partnership had net income of P210,000 before admission of JP and the partners agree to revalue its overvalued equipment by P35,000. Capital balance of BK increased by P10,500 as a result of the admission of JP, while the capital balance of TF at the start of the year is P700,000. What is the capital balance of PV at the start of the year?

Problem 2: Ester, Judith and Martha were partners with capital balances on January 2, 2014 of P70,000, P84,000 and P56,000, respectively. Their loss sharing ratio 3:5:2. On July 1, 2014, Ester retires from the partnership. On the date of retirement the partnership net profit from operations is P48,000. The partners agreed further to pay Ester P76,560 in settlement of her interest. How much will be the capital of Judith after retirement of Ester?

Problem 3: On December 30, 2014, the Statement of Financial Position of DG Co. has the following balances: Total assets of P2,250,000, VL loan P125,000, VL capital P518,750, MD capital P481,250 and LV capital P1,125,000. The partners share profits and losses in the ratio of 25% to VL, 25% to MD and 50% to LV. It was agreed among the partners that VL retires from the partnership and the partnership assets be adjusted to their fair value of P2,550,000 as of December 31, 2014. The partnership also suffered net loss of P750,000. The partnership would pay VL the amount of P542,500 cash for his total interest in the partnership. What is the total capital of MD after retirement of VL?

Reference no: EM132668132

Questions Cloud

Corporate social responsibility : You are the leader of a management team about to hire an organization development practitioner to conduct a team-building exercise with your staff

What amount of cash was paid for interest in april : What amount of cash was paid for interest in April? May? June? May sales on account were $510,000. The inventory had cost $305,000.

Difference between fob shipment and fob destination : What is the difference between FOB Shipment and FOB Destination? Explain the advantages and disadvantages of each.

How many pies and cakes does each produce : If each spends 30 minutes of each hour producing pies and 30 minutes producing cakes, how many pies and cakes does each produce?

What is the total capital of MD after retirement of VL : The partnership would pay VL the amount of P542,500 cash for his total interest in the partnership. What is the total capital of MD after retirement of VL

How much is the he capital balance of Patrice : Patrice, Bella and Timmy were partners with capital balances on January 2, 2019 of P175,000; How much is the he capital balance of Patrice

CJ330 Criminal Law and Procedure Assignment Problem : CJ330 Criminal Law and Procedure, Assume you have been asked to testify at a state legislative committee hearing regarding consideration of a bill to ban all.

Hospital adoption of the new technology : What would be the possible drivers of cost to the patient due to the hospital's adoption of the new technology?

Post entries in T-accounts and calculate the balance of each : Dec. 23 Collected $2,800 cash for rooms for a conference held from December 16 to 23. Post entries in T-accounts and calculate the balance of each

User Account

All Pages