60,000 alities 60,000 x, capital 90,000 cash other assets 200,000 y capital 110,
ID: 2600204 • Letter: 6
Question
60,000 alities 60,000 x, capital 90,000 cash other assets 200,000 y capital 110,000 Total assets 260,000 Tota liabilities and capital 260,000 x and y share profits and losses in the ratio 60:40 Each of the following questions is independent of the others 1. refer to the above infomation. assume that z invests 80,000 cash into the xy partnership for 1/5 interest in partnership capital and profitd, and the total firm capital of the xyz partnership is $280,000. what is the capital balance of y after z is admitted into the partnership? a. 119,600 b.112,000 c. 110,000 d.100,400 e. 104,400 2.refer to the above infomation. assume that z ipurchases a 1/5 proportionate capital interest directly from x and y for a total of 60,000 what is Z's capital balance of x and y when admitted into the partnership? a.40,000 b.50,000 c.60,000 d.70,000 3. x and y are partners who share income in the ration 2:1 and who have capital balances of 80,000 and 40,000 respectively. if with the consent of y, acquired 1/2 of x's interest for 40,000 for what amount would p's capital account be credited? a. 32,500 b.40,000 c.50,000 d.72500Explanation / Answer
1.Here, total capital = $90,000 + $110,000 + $80,000 = $280,000
Z's 1/5th in the partnership = $280,000* 1/5 = 56,000
Goodwill = 80,000- 56,000 = $24,000
Y's share of the partnership is 40% = $24,000 x 40% = $9,600
His share would have to be increase by $9,600 = $110,000 + $9,600 = $119,600
2. 1/5th capital interest directly from x and y , that means Total capital = $200,000
Z's capital = $200,000*1/5 = $40,000
3. Total capital balance = 80,000 + 40,000 = $120,000
p acquired 1/2 of the interest of X's capital
Therefore, P's capital account will be credited by = $80,000*1/2 = $40,000
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