You are on page 1of 4

13 (C)

Loan
Asset Revaluation (2,550,000 - 2,250,000), 25%, 25%, 50%
Net loss, 25%, 25%, 50% (750,000)

Cash settlement
Bonus from remaining partners, shared 25:50

14 (A)

15 (C)
Capital balances
Share in net income 48,000, according to beginning capital balances
Settlement to E
Bonus from E to remaining partners (shared based on beginning capital balances)

**The given sharing is for loss. To share profit, you base it on capital balances.

16 (B) and (D)


Capital balances
Salary
Interest of 3%
Remainder, 2:4:4
Adjustment for Equipment +50000
Adjustment for Depreciation -5000
Adjustment for Inventory +50000

Bonus from retiring partner to remaining partners

Capital balances
Salary
Interest of 3%
Remainder, 2:4:4
Adjustment for Equipment +50000
Adjustment for Depreciation -5000
Adjustment for Inventory +50000

Bonus from remaining partners to retiring partner


Assets VL MD LV
2,250,000.00 518,750.00 481,250.00 1,125,000.00
125,000.00
300,000.00 75,000.00 75,000.00 150,000.00
(187,500.00) (187,500.00) (375,000.00)
531,250.00 368,750.00 900,000.00
(542,500.00)
11,250.00 (3,750.00)

- 365,000.00 (C)

Asset
787,500.00
Underdepreication of fixed asset (26,250.00)
Payment to TD upon retirement (93,100.00)
Asset balance 668,150.00
Less: Liabilities (787500 - 101500 - 112000 - 134750) (439,250.00)
Net assets 228,900.00 (A)

E J M
70,000.00 84,000.00 56,000.00 210,000.00
16,000.00 19,200.00 12,800.00
(76,560.00)
(9,440.00) 5,664.00 3,776.00
- 108,864.00 (C)

L M N Totals
625,000.00 750,000.00 937,500.00
75,000.00 75,000.00 75,000.00 225,000.00
18,750.00 22,500.00 28,125.00 69,375.00
16,125.00 32,250.00 32,250.00 80,625.00
10,000.00 20,000.00 20,000.00 375,000.00 Net Income
(1,000.00) (2,000.00) (2,000.00)
10,000.00 20,000.00 20,000.00
753,875.00 917,750.00 1,110,875.00
16,125.00 32,250.00 (48,375.00)
770,000.00 1,062,500.00 (B)

L M N Totals
625,000.00 750,000.00 937,500.00
75,000.00 75,000.00 75,000.00 225,000.00
18,750.00 22,500.00 28,125.00 69,375.00
16,125.00 32,250.00 32,250.00 80,625.00
10,000.00 20,000.00 20,000.00 375,000.00 Net Income
(1,000.00) (2,000.00) (2,000.00)
10,000.00 20,000.00 20,000.00
753,875.00 917,750.00 1,110,875.00
(13,875.00) (27,750.00) 41,625.00
890,000.00 1,152,500.00 (D)

You might also like