P 14 - 12-14

Kent Deriquito and Jude Searez are partners of Cebu Vintage Car. The Income and Expense. Summary account before final closing shows a credit balance of P450,000 at the end of the fiścal year. The following were taken from their respective çapital account ledgers: Kent Deriquito Balance 752,000 70,000 50,000 Jan. 1 Oct. 1 Withdrawal Dec. 1 Investment Jude Searez 680,000 80,000 10,000 40,000 Jan. 1 Balance March 1 Investment Nov. Withdrawal %3D Dec. Investment

2. Use the following information for the next three cases: The partnership agreement of A, B and C stipulates the following: Partners A and C shall receive annual salaries of P12,000 and P8,000, respectively. DA bonus of 10% of profit after salaries but before deduction of bonus shall be given to Partner A, the managing partner. Each partner shall receive 10% interest on average capital investments. TAny remaining profit or loss shall be shared as follows: 40% to A and 30% each to B and C. The average capital investments of partners during the year are as follows: AP100,000 B 60,000 C 120,000 Case #1: The partnership earns profit of P100,000. Requirement: Compute for the respective shares of the partners on the partnership profit. Case #2: The partnership earns profit of P10,000. Requirement: Compute for the respective shares of the partners on the partnership profit. Case #3: The partnership incurs loss of P20,000. Requirement: Compute for the respective shares of the partners on the…

Partners De Guzman and Tugade receive a salary allowance of P30,000 and P70,000, respectively, and share the remainder equally. If the company earned P40,000 during the period, what is the effect on Tugade’s capital? a.P30,000 decrease b.P40,000 increasec. c.P50,000 increased. d.P90,000 increase

Provide complete solution.

3. How much was the share of A?

The following are the partnership agreement between partners Baby Love & Honey Sweet for their partnership’s profit distribution:A. Each partners shall be entitled for an annual salary of P50,000 each.B. 15% Bonus of partnership profits after salaries to Honey Sweet being a managing partner.C. 20% interest is given to both partners based on average capital ratio.D. Residual profit and loss shall be distributed on the ratio 2:2The ledgers of their capital balances are shown below:  Baby Love  Debit:  July 1. P20,000 Credit: Jan 1. P80,000                Oct 1. P40,000 Honey Sweet Debit:  Oct 1. P10,000 Credit:  Jan 1. P120,000                May 1. 30,000 The partnership profit for the year is P150,000 before distribution to partners   Required: 1. Prepare a Schedule for Profit Distribution.2. Journal entry to record the distribution of profit to partners.

On December 31, the capital balances and income ratios in Sandhill Company are as follows. Partner Capital Balance Income Ratio Trayer $56,500 50% Emig 39,000 30% Posada 25,500 20% (a) Journalize the withdrawal of Posada under each of the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) Each of the continuing partners agrees to pay $16,600 in cash from personal funds to purchase Posada's ownership equity. Each receives 50% of Posada's equity. (2) Emig agrees to purchase Posada's ownership interest for $24,000 cash. (3) Posada is paid $30,300 from partnership assets, which includes a bonus to the retiring partner. (4) Posada is paid $17,020 from partnership assets, and bonuses to the remaining partners are recognized.

The partnership agreement of A, B and C stipulates the following: Partners A and C shall receive annual salaries of 12,000 and ₱ 8,000, respectively. A bonus of 10% of profit after salaries but before deduction of bonus shall be given to Partner A, the managing partner. (Deduct the salaries to the profit, as basis for computation) Each partner shall receive 10% interest on average capital investments. Any remaining profit or loss shall be shared as follows: 40% to A and 30% each to B and C. The average capital investments of partners during the year are as follows: A                  ₱100,000 B                      60,000 C                    120,000   The partnership earns profit of ₱100,000.   Requirement: Compute for the respective shares of the partners on the partnership profit.

A, B and C share profits and losses in the ratio of 3:2:1. C is to receive a salary of K30, 000 as managing partner, and interest at the rate of 15% p. a is to be charged on drawings. Further, Interest to be earned by partners on their capital contributed. The following are the results of the profits and losses appropriated for the current year. Net profit K200, 0000 Salary K30, 000 Interest on drawings A K10, 000 B K8, 000 C K7, 000 Interests on capital A K20, 000 B K15, 000 C K15, 000 You are required to calculated the partners share of taxable income for tax purposes.

On December 31, the capital balances and income ratios in Blossom Company are as follows. Partner Capital Balance Income Ratio Trayer $62,500 50% Emig 37,500 30% Posada 30,000 20% (a) (b) × Your answer is incorrect. If Emig's capital balance after Posada's withdrawal is $41,430, what were (1) the total bonus to the remaining partners and (2) the cash paid by the partnership to Posada? (1) Total bonus (2) Cash paid to Posada GA +A 3930 33930

Problem #5 SCORE: PROFESSOR: Distribution of Profits or Losses Based on Partners' Agreement Abad, Aglugub, and Onate agreed to share profits and losses according to the ratio of their respective investments at the beginning of the year of P300,000, P250,000, and P450,000. Calculate the share of each partner under the following conditions: (a) P270,000 profit; (b) P240,000 loss.