GSCORE:NAME:PROFESSOR:SECTION:Multiple Choice1. Ceradoy, Manongsong and Anuran are partners sharing residual profits in the ratioof 3:2:1. The partnership agreement provides for 8% interest on capital and asalary for Manongsong of P80,000 per annum. Profit for 2015 was P840,000 andthe year-end balances on partners' capital accounts are as follows: Ceradoy,P200,000; Manongsong, P150,000 and Anuran, P120,000. What was Anuran's shareof residual profits for 2015?a. P120,400b. P126,670c. P130,000d. P140,0002. Malaluan and Baral are in partnership. They share profits in the ratio 3:2 and closetheir accounts on June 30 each year.On Jan. 1, 2015, Castro joined the partnership.The profit-sharing ratio was revised to become Malaluan 50%, Baral 25% and Castro25%, after providing for annual salaries. as follows: Baral, P20,000 and Castro,P12,000. The partnership profit for the year ended June 30, 2015 was P480,000,accruing evenly over the year. What are the partners' total share in profits for theyear ended June 30, 2015?MalaluanBaralCastroP162,000P62,000P64,000a.P256,000P168,000P166,000P156,000b.P248,000P66,000P60,000С.P264,000d.P264,0003. Refozar, Martinez and Magsino formed a partnership. It's on a calendar year basis.The profit-sharing arrangements are as follows:Until June 30, 2015, the annual salaries are provided as follows: Martinez, P40,000and Magsino, P20,000. The residual profit will be shared in the ratio of 6:2:2.From July 1, 2015, the salaries will be discontinued and the profit to be divided inthe revised ratio of 5:3:2.Profit for the year ended Dec. 31, 2015 was P400,000 before charging partners'salaries, accruing evenly through the year, and after charging an expense ofP40,000, which it was agreed related wholly to the first six months of the year.How should the profit for the year be divided among the partners?RefozarMartinezMagsinoP182,000P88,000P130,000P116,000a.b.P200,000P84,000Partnership Operations and Financial Reporting | 2-33

The residual profit seems to be the sum of profit that remains after accounting for the notion that…

1. Ceradoy, Manongsong and Anuran are partners sharlng of 3:2:1. The partnership agreement provides for 8% interest on capital and a salary for Manongsong of P80,000 per annum. Profit for 2015 was P840,000 and the year-end balances on partners' capital accounts are as follows: Ceradoy, P200,000; Manongsong, P150,000 and Anuran, P120,000. What was Anuran's share of residual profits for 2015? a. P120,400 b. P126,670 c. P130,000 d. P140,000

1. Ceradoy, Manongsong and Anuran are partners sharlng of 3:2:1. The partnership agreement provides for 8% interest on capital and a salary for Manongsong of P80,000 per annum. Profit for 2015 was P840,000 and the year-end balances on partners' capital accounts are as follows: Ceradoy, P200,000; Manongsong, P150,000 and Anuran, P120,000. What was Anuran's share of residual profits for 2015? a. P120,400 b. P126,670 c. P130,000 d. P140,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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