Reference no: EM133094568
Questions -
Q1. The following selected data were taken from the ledger of A and B Partnership Trading:
Net Sales P892,500
Cash 100,000
Cost of Sales 475,600
Merchandise Inventory end 12,500
Operating Expenses 202,100
Interest Income 7,375
Unearned Sales Income 20,000
Accrued Interest Income 1,250
Accrued Interest Expense 800
Prepaid Expenses 5,000
A, Capital 300,000
B, Capital 200,000
A, Drawing 50,000
How much is the Net Income at year end?
Q2. The ABC partnership's Statement of Changes in Equity reveals that Partner A's drawing account during the year totaled P80,000, he made an additional capital investment of P150,000 and his share of the loss for the year was P25,000. His ending equity balance was P380,000.
What was A's beginning capital balance?
Q3. A, B and C are forming a new partnership. A will invest cash of P320,000 and a computer costing P80, 000 but has a market value of P50,000. B is to contribute P100,000 cash and a car with a market value of P440,000 although he bought it originally for P820,000. C on the other hand will invest sufficient cash to give him 20% equity in the partnership. The partners will share profits and losses in the ratio of 25:25:50 for A, B and C, respectively.
What is the total partnership equity upon formation?
Q4. Partners A and B formed a partnership on January 1, 2020 where Partner A invested P500,000 while Partner B invested P300,000. Profit and loss as agreed upon by partners is to be shared in the ratio of the original capital. The drawing accounts of Partners A and B have debit balances of P24,000 and P12,000 respectively. Net income for the period ending December 31, 2020 amounted to P180,200.
What is capital balance of Partner A for the year ending December 31, 2020?