A Classified Selection of Problems in Accounting
A Classified Selection of Problems in Accounting
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A further agreement was made that the partners were to be paid for goodwill, based on a year and a quarter's purchase of the last tfiree years' profits, which were respectively $32,620, $37,450 and $50,650.
Prepare a balance sheet, bringing in goodwill as an asset and distributing it among the four partners.
Problem 119 The firm of HohenzoUem & Ludendorf began business on January 1, 1920, the terms of the partnership contract specifying that no interest was to be credited on the investments or ...charged on withdrawals, and all profits or losses were to be shared equally.
HohenzoUem invested $24,000 and Ludendorf $15,000. The books had not been closed, and all drawings had been charged to the capital accounts.
On November 30, 1922, the partnership was dissolved, and since the books had not been properly kept, the following state- ment was submitted to the partners as a basis for settlement and agreed to by them: cash, $14,200; net debit of A, $6,300; ex- penses, $15,300 ; net credit of B, $10,500 ; profit and loss, debit, $9,000, credit, $1,500; real estate having an estimated market value of $3,300; the bank holds the firm's six months' 6% note for $10,000, due January 31, 1923, on which interest is unpaid.
What to read after A Classified Selection of Problems in Accounting?
You can find similar books in the "Read Also" column, or choose other free books by Ross G. Walker to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
A further agreement was made that the partners were to be paid for goodwill, based on a year and a quarter's purchase of the last tfiree years' profits, which were respectively $32,620, $37,450 and $50,650.
Prepare a balance sheet, bringing in goodwill as an asset and distributing it among the four partners.
Problem 119 The firm of HohenzoUem & Ludendorf began business on January 1, 1920, the terms of the partnership contract specifying that no interest was to be credited on the investments or ...charged on withdrawals, and all profits or losses were to be shared equally.
HohenzoUem invested $24,000 and Ludendorf $15,000. The books had not been closed, and all drawings had been charged to the capital accounts.
On November 30, 1922, the partnership was dissolved, and since the books had not been properly kept, the following state- ment was submitted to the partners as a basis for settlement and agreed to by them: cash, $14,200; net debit of A, $6,300; ex- penses, $15,300 ; net credit of B, $10,500 ; profit and loss, debit, $9,000, credit, $1,500; real estate having an estimated market value of $3,300; the bank holds the firm's six months' 6% note for $10,000, due January 31, 1923, on which interest is unpaid.
What to read after A Classified Selection of Problems in Accounting?
You can find similar books in the "Read Also" column, or choose other free books by Ross G. Walker to read onlineMoreLess
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