Financial Accounting II - HELPPP

[Mustang4119]

Does anyone know accounting II, please pm me. I am totally stuck. Accounting is so hard with all these numbers and math problems. Its on liquidation and adding/withdrawaling a partnership.

 

[Ernad]

post it here

 

[Mustang4119]

A and B are partners who share income in the ratio of 2:1 and have capital balances of 70,000 and 30,000 respectively. With the consent of B, X buys one half of A's interest for 35,000. For what amount will A's capital account be debited to record admission of X to the partnership?

a. 40,000
b. 15,000
c. 25,000
d. 35,000

 

[Mustang4119]

Tim, Don, and Hans are partners with capital balances of 20,000, 30,000, and 50,000 respectively. They share income in the ratio of 3:2:1. Income Summary with a credit balance of 30,000 is closed to the capital accounts. Don withdraws from the partnership. How much cash does he get upon withdrawal.

a. 30,000
b. 20,000
c. 40,000
d. 24,000

 

[Ernad]

D. (for the first one)

 

[Ernad]

C. for the second one

 

[Mustang4119]

The balance sheet of Marilyn and Monroe was as follows immediately prior to the partnership's being liquidated: cash, 20,000, other assets, 160,000, liabalities, 40,000, Marilyn Capital, 60,000, Monroe Capital, 80,000. The other assets were sold for 148,000. Marilyn and Monroe share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, Marilyn will receive cash totaling

a. 46,000
b. 52,000
c. 60,000
d. 49,500

 

[Mustang4119]

X, Y, and Z are partners, sharing income 3:2:1. After selling all of the assets for cash, dividing losses on realization, and paying liabilities, the balances in the capital accounts are as follows: X, 50,000, Cr.;Y, 20,000 Cr.; and Z, 30,000 Dr. Assume that after the available cash is distributed to the partners, Z pays 15,000 of the deficiency to the firm. How much of the 15,000 should be distributed to X?

a. 9,000
b. 0
c. 5,000
d. 10,000

 

[Ernad]

A and B are partners who share income in the ratio of 2:1 and have capital balances of 70,000 and 30,000 respectively. With the consent of B, X buys one half of A's interest for 35,000. For what amount will A's capital account be debited to record admission of X to the partnership?

a. 40,000
b. 15,000
c. 25,000
d. 35,000

Two ways to do this. X is buying one half of A.

1. A holds 70% of total capital (70 grand out of 100 grand). Thus, X gets 35% of the capital. 35% of a 100 grand = 35,000

2. A has 70,000 invested, Z buys half. One half of 70 grand is 35 grand

Tim, Don, and Hans are partners with capital balances of 20,000, 30,000, and 50,000 respectively. They share income in the ratio of 3:2:1. Income Summary with a credit balance of 30,000 is closed to the capital accounts. Don withdraws from the partnership. How much cash does he get upon withdrawal.

a. 30,000
b. 20,000
c. 40,000
d. 24,000

Don's ratio is 2/6 (add the ratio of 3:2:1, take his part 2, and divide by sum of ratio). 2/6 = 1/3. One third of 30,000 is 10,000. However, he also has a capital balance of 30,000. When he withdraws he gets that balance and the one third of the net income which equals 40,000.

The balance sheet of Marilyn and Monroe was as follows immediately prior to the partnership's being liquidated: cash, 20,000, other assets, 160,000, liabalities, 40,000, Marilyn Capital, 60,000, Monroe Capital, 80,000. The other assets were sold for 148,000. Marilyn and Monroe share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, Marilyn will receive cash totaling

a. 46,000
b. 52,000
c. 60,000
d. 49,500

I am guessing B. 52,000

They sell the other assets at a loss of 12,000 (148,000 - 160,000). Since Marilyn has a 2/3 ratio for profit and losses, he loses 8,000 on the deal (2/3 times 12,000). Subtract 8 grand from his capital of 60 grand, and you're left with 52,000.

The only thing worrying me is that the liabilities are not paid, but maybe Marilyn is just exiting out and Monroe will carry on with those.

X, Y, and Z are partners, sharing income 3:2:1. After selling all of the assets for cash, dividing losses on realization, and paying liabilities, the balances in the capital accounts are as follows: X, 50,000, Cr.;Y, 20,000 Cr.; and Z, 30,000 Dr. Assume that after the available cash is distributed to the partners, Z pays 15,000 of the deficiency to the firm. How much of the 15,000 should be distributed to X?

a. 9,000
b. 0
c. 5,000
d. 10,000

B. 0

None. Z has a debit balance of 30,000. If he credits 15,000 to his account he still leaves a 15,000 debit balance (a loss which may have to be spread between X and Y).

 

[DTNODYA]

Two ways to do this. X is buying one half of A.

1. A holds 70% of total capital (70 grand out of 100 grand). Thus, X gets 35% of the capital. 35% of a 100 grand = 35,000

2. A has 70,000 invested, Z buys half. One half of 70 grand is 35 grand


Don's ratio is 2/6 (add the ratio of 3:2:1, take his part 2, and divide by sum of ratio). 2/6 = 1/3. One third of 30,000 is 10,000. However, he also has a capital balance of 30,000. When he withdraws he gets that balance and the one third of the net income which equals 40,000.


I am guessing B. 52,000

They sell the other assets at a loss of 12,000 (148,000 - 160,000). Since Marilyn has a 2/3 ratio for profit and losses, he loses 8,000 on the deal (2/3 times 12,000). Subtract 8 grand from his capital of 60 grand, and you're left with 52,000.

The only thing worrying me is that the liabilities are not paid, but maybe Marilyn is just exiting out and Monroe will carry on with those.


B. 0

None. Z has a debit balance of 30,000. If he credits 15,000 to his account he still leaves a 15,000 debit balance (a loss which may have to be spread between X and Y).