Scribd Logo
Upload

Welcome to Scribd!

  • 7 views

    0 Partnership Dissolution Quiz 1A

    Uploaded by

    Zenji Sen Pai
    1) The document details 4 cases of capital transfers and payments between partners in a partnership, resulting in changes to individual capital balances and profit/loss sharing ratios. 2) In Case 1, Aristotle transfers capital to Elgort, increasing Elgort's capital and reducing Aristotle's. Their profit/loss sharing ratios adjust accordingly. 3) In Case 2, Beethoven and Carpenter transfer capital to Elgort, changing their individual capital balances and profit/loss sharing ratios. 4) Case 3 involves all partners transferring capital to Elgort, with corresponding payments that result in personal gains/losses and adjusted capital/ratios. 5) Case 4 is another capital transfer and payment between all partners

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    0 Partnership Dissolution Quiz 1A

    Uploaded by

    Zenji Sen Pai
    7 views5 pages
    1) The document details 4 cases of capital transfers and payments between partners in a partnership, resulting in changes to individual capital balances and profit/loss sharing ratios. 2) In Case 1, Aristotle transfers capital to Elgort, increasing Elgort's capital and reducing Aristotle's. Their profit/loss sharing ratios adjust accordingly. 3) In Case 2, Beethoven and Carpenter transfer capital to Elgort, changing their individual capital balances and profit/loss sharing ratios. 4) Case 3 involves all partners transferring capital to Elgort, with corresponding payments that result in personal gains/losses and adjusted capital/ratios. 5) Case 4 is another capital transfer and payment between all partners

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    1) The document details 4 cases of capital transfers and payments between partners in a partnership, resulting in changes to individual capital balances and profit/loss sharing ratios. 2) In Case 1, Aristotle transfers capital to Elgort, increasing Elgort's capital and reducing Aristotle's. Their profit/loss sharing ratios adjust accordingly. 3) In Case 2, Beethoven and Carpenter transfer capital to Elgort, changing their individual capital balances and profit/loss sharing ratios. 4) Case 3 involves all partners transferring capital to Elgort, with corresponding payments that result in personal gains/losses and adjusted capital/ratios. 5) Case 4 is another capital transfer and payment between all partners

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    7 views5 pages

    0 Partnership Dissolution Quiz 1A

    Uploaded by

    Zenji Sen Pai
    1) The document details 4 cases of capital transfers and payments between partners in a partnership, resulting in changes to individual capital balances and profit/loss sharing ratios. 2) In Case 1, Aristotle transfers capital to Elgort, increasing Elgort's capital and reducing Aristotle's. Their profit/loss sharing ratios adjust accordingly. 3) In Case 2, Beethoven and Carpenter transfer capital to Elgort, changing their individual capital balances and profit/loss sharing ratios. 4) Case 3 involves all partners transferring capital to Elgort, with corresponding payments that result in personal gains/losses and adjusted capital/ratios. 5) Case 4 is another capital transfer and payment between all partners

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 5

    Partnership Dissolution Quiz 1

    Comprehensive Case A
    Case 1

    Capital Transferred
    Aristotle 270,000.00

    Amount Paid
    Aristotle 300,000.00

    Difference 30,000.00
    Aristotle Personal Gain 30,000.00
    Elgort Personal Loss 30,000.00

    P/L Sharing Ratio Transferred


    Aristotle 2 x 50% 1.00

    Journal Entry
    Aristotle, Capital 270,000.00
    Elgort, Capital 270,000.00

    Changes in Capital Structure


    Capital Balance P/L Sharing Ratio
    Before After Before After After in %
    Aristotle 540,000.00 270,000.00 2 1 10.00%
    Beethoven 860,000.00 860,000.00 3 3 30.00%
    Carpenter 720,000.00 720,000.00 3 3 30.00%
    Dillashaw 480,000.00 480,000.00 2 2 20.00%
    Elgort - 270,000.00 1 10.00%
    Total 2,600,000.00 2,600,000.00 10 10 100.00%
    Case 2

    Capital Transferred
    Beethoven 258,000.00
    Carpenter 144,000.00

    Amount Paid
    Beethoven 250,000.00
    Carpenter 150,000.00

    Difference 2,000.00
    Beethoven Personal Loss 8,000.00
    Carpenter Personal Gain 6,000.00
    Elgort Personal Gain 2,000.00

    P/L Sharing Ratio Transferred


    Beethoven 3 x 30% 0.90
    Carpenter 3 x 20% 0.60
    Total 1.50

    Journal Entry
    Beethoven, Capital 258,000.00
    Carpenter, Capital 144,000.00
    Elgort, Capital 402,000.00

    Changes in Capital Structure


    Capital Balance P/L Sharing Ratio
    Before After Before After After in %
    Aristotle 540,000.00 540,000.00 2.00 2.00 20.00%
    Beethoven 860,000.00 602,000.00 3.00 2.10 21.00%
    Carpenter 720,000.00 576,000.00 3.00 2.40 24.00%
    Dillashaw 480,000.00 480,000.00 2.00 2.00 20.00%
    Elgort - 402,000.00 1.50 15.00%
    Total 2,600,000.00 2,600,000.00 10.00 10.00 100.00%
    Case 3

    Capital Transferred
    Aristotle 108,000.00
    Beethoven 172,000.00
    Carpenter 144,000.00
    Dillashaw 96,000.00 520,000.00

    Amount Paid
    Aristotle 118,384.62
    Beethoven 188,538.46
    Carpenter 157,846.15
    Dillashaw 105,230.77 570,000.00

    Difference 50,000.00
    Aristotle Personal Gain 10,384.62
    Beethoven Personal Gain 16,538.46
    Carpenter Personal Gain 13,846.15
    Dillashaw Personal Gain 9,230.77
    Elgort Personal Loss 50,000.00

    P/L Sharing Ratio Transferred


    Aristotle 2 x 20% 0.40
    Beethoven 3 x 20% 0.60
    Carpenter 3 x 20% 0.60
    Dillashaw 2 x 20% 0.40
    Total 2.00

    Journal Entry
    Aristotle, Capital 108,000.00
    Beethoven, Capital 172,000.00
    Carpenter, Capital 144,000.00
    Dillashaw, Capital 96,000.00
    Elgort, Capital 520,000.00

    Changes in Capital Structure


    Capital Balance P/L Sharing Ratio
    Before After Before After After in %
    Aristotle 540,000.00 432,000.00 2.00 1.60 16.00%
    Beethoven 860,000.00 688,000.00 3.00 2.40 24.00%
    Carpenter 720,000.00 576,000.00 3.00 2.40 24.00%
    Dillashaw 480,000.00 384,000.00 2.00 1.60 16.00%
    Elgort - 520,000.00 2.00 20.00%
    Total 2,600,000.00 2,600,000.00 10.00 10.00 100.00%
    Case 4

    Capital Transferred
    Aristotle 54,000.00
    Beethoven 86,000.00
    Carpenter 72,000.00
    Dillashaw 48,000.00 260,000.00

    Amount Paid
    Aristotle 50,000.00
    Beethoven 80,000.00
    Carpenter 70,000.00
    Dillashaw 45,000.00 245,000.00

    Difference 15,000.00
    Aristotle Personal Loss 4,000.00
    Beethoven Personal Loss 6,000.00
    Carpenter Personal Loss 2,000.00
    Dillashaw Personal Loss 3,000.00
    Elgort Personal Gain 15,000.00

    P/L Sharing Ratio Transferred


    Aristotle 2 x 10% 0.20
    Beethoven 3 x 10% 0.30
    Carpenter 3 x 10% 0.30
    Dillashaw 2 x 10% 0.20
    Total 1.00

    Journal Entry
    Aristotle, Capital 54,000.00
    Beethoven, Capital 86,000.00
    Carpenter, Capital 72,000.00
    Dillashaw, Capital 48,000.00
    Elgort, Capital 260,000.00

    Changes in Capital Structure


    Capital Balance P/L Sharing Ratio
    Before After Before After After in %
    Aristotle 540,000.00 486,000.00 2.00 1.80 18.00%
    Beethoven 860,000.00 774,000.00 3.00 2.70 27.00%
    Carpenter 720,000.00 648,000.00 3.00 2.70 27.00%
    Dillashaw 480,000.00 432,000.00 2.00 1.80 18.00%
    Elgort - 260,000.00 1.00 10.00%
    Total 2,600,000.00 2,600,000.00 10.00 10.00 100.00%

    You might also like