1. Aristorenas, Soriano and Filamor have the foļlowing profit and loss agreement: Partners Aristorenas and Soriano will receive salaries of P40,000 each. Partner Filamor will get a bonus of 10% of profit after salaries and bonus. Remaining profits are shared by Aristorenas, Soriano and Filamor in the ratio of 3:4:3, respectively. The partnership had a profit of P91,000. How much should be allocated to Filamor? P 4,000 b. P 4,070 a. c. P 9,100 d. P27,300
1. Aristorenas, Soriano and Filamor have the foļlowing profit and loss agreement: Partners Aristorenas and Soriano will receive salaries of P40,000 each. Partner Filamor will get a bonus of 10% of profit after salaries and bonus. Remaining profits are shared by Aristorenas, Soriano and Filamor in the ratio of 3:4:3, respectively. The partnership had a profit of P91,000. How much should be allocated to Filamor? P 4,000 b. P 4,070 a. c. P 9,100 d. P27,300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Question
Transcribed Image Text:1. Aristorenas, Soriano and Filamor have the following profit and loss agreement:
Partners Aristorenas and Soriano will receive salaries of P40,000 each.
Partner Filamor will get a bonus of 10% of profit after salaries and bonus.
Remaining profits are shared by Aristorenas, Soriano and Filamor in the ratio of 3:4:3,
respectively.
*
The partnership had a profit of P91,000. How much should be allocated to Filamor?
P 4,000
b. Р 4,070
а.
C. P 9,100
d. P27,300
2. A partnership showed the following account balances: sales, P70,000; cost of sales,
P40,000; operating expenses, P10,000; partners' salaries, P13,000; interest paid to
banks, P2,000 and partners' drawings, P8,000. The partnership profit is
P20,000.
с. Р 5,000.
d. P(3,000).
а.
b. P18,000.
3. Villena, a partner in the Dulay, Villena & Co., has a 30% participation in partnership
profits and losses. Villena's capital account has a net decrease of P120,000 during
the calendar year 2019. During 2019, Villena withdrew P260,000 (charged against
his capital account) and contributed property valued at P50,000 to the partnership.
What was the profit of the Dulay, Villena & Co. for year 2019?
а.
P1,100,000
С.
P700,000
b.
P466,667
d.
P300,000
4. Márasigan, Cabance and Cequina formed a partnership on Jan. 1, 2019. (Each
contributed P120,000. Salaries were to be allocated as follows: Marasigan,
P30,000; Cabance, P30,000; Cequina, P45,000. Drawings were equal to salaries and
to be taken out evenly throughout the year. With sufficient partnership profit,
Marasigan and Cabance could split a bonus equal to 25% of partnership profit after
salaries and bonus (in no event could the bonus go below zero).
Remaining profits were to be split as follows: 30% for Marasigan; 30% for Cabance,
and 40% for Cequina. For the year, partnership profit was P120,000. Compute the
ending capital for each partner:
Marasigan, P125,100; Cabance, P125,100, Cequina, P124,800
Marasigan, P126,000; Cabance, P126,000, Cequina, P124,500
Marasigan, P125,500; Cabance, P125,500, Cequina, P124,000
Marasigan, P155,100; Cabance, P155,100; Cequina, P169,800
а.
b.
, С.
d.
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