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

See similar textbooks

Related questions

Q: The Articles of Partnership of Kageyama and Kenma have the following provisions stipulated: . An…

A: A partnership is an arrangement where two or more people join together to make an agreement and work…

Q: YES Partnership started operations on January 2, 2016 with the following capital balances: Yves…

A: Partnership: A partnership is an agreement between two or more people to run a business and share…

Q: AA and BB have been partners for a decade. As of January 1, 2022, the capital balances of AA and BB…

A: Partnership is one of the form of business organisation, under which two or more than two persons…

Q: QUESTION 3 Which one of the following alternatives represents the correct amount that must be…

A: The question is multiple choice question Required Choose the Correct Option.

Q: A, B, and C of ABC Partnership have beginning capital balances of P500,000, P300,000, and P200,000…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: Reena and Raman are partners with capitals of Rs. 3,00,000 and Rs. 1,00,000 respectively. The profit…

A: In the given problem, the partners are entitled to equal profits after appropriations of interest on…

Q: The following details are related to ABC & Co, a trading partnership entity. Find the good will…

A: Solution:- a)Calculation of goodwill using average profit method as follows:- Goodwill =Average…

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

G
SCORE:
NAME:
PROFESSOR:
SECTION:
Multiple Choice
1. Ceradoy, Manongsong and Anuran are partners sharing residual profits in the ratio
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
2. Malaluan and Baral are in partnership. They share profits in the ratio 3:2 and close
their 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 Castro
25%, 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 the
year ended June 30, 2015?
Malaluan
Baral
Castro
P162,000
P62,000
P64,000
a.
P256,000
P168,000
P166,000
P156,000
b.
P248,000
P66,000
P60,000
С.
P264,000
d.
P264,000
3. 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, P40,000
and 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 in
the 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 of
P40,000, 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?
Refozar
Martinez
Magsino
P182,000
P88,000
P130,000
P116,000
a.
b.
P200,000
P84,000
Partnership Operations and Financial Reporting | 2-33

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The AA Tours Partnership earned P500,000 this year. The partners have equal capital balances, and share profits and losses 1:3. The partners will show share in partnership profit ofa. P250,000 eachb. P250,000 and P750,000, respectivelyc. P125,000 and P375,000, respectivelyd. P500,000 each
Show your solution and answer.
Mr. X, Mr. Y and Mr. Z are partners in a partnership firm XYZ sharing havingcapitals of Rs. 400,000, Rs. 600,000 and Rs. 80,000 respectively. Theirpartnership agreement is as follows.i. Interest is allowed @ 9% on their capitalsii. Salary to X Rs. 60,000 and Y Rs. 30,000iii. Commission to Y Rs. 50,000 and Z Rs. 20,000iv. Bonus to X Rs. 24,000 and Z Rs. 36,000v. The reaming profit or loss is to be distributed in the ratio of their capitalNet loss of the firm is Rs. 200,000Required: Prepare income distribution summary and general journal entries
YES Partnership started operations on January 2, 2016 with the following capital balances: Yves 88,000 Ernest 64,000 Serge 90,000 Their profit and loss agreement has the following provisions: - Yves will be given an annual salary of 16,000 and Serge 8,000 - All partners will be given 10% interest on beginning capital balances every year - The balance of the profit, or the loss, will be divided on a 2:3:5 to Yves, Ernest and Serge, respectively. - Each partner is allowed to withdraw up to 8,000 every year In 2016, partnership operations resulted in a net loss of 16,000, while in 2017, it was a net profit of 32,000. All partners withdrew the maximum amount of 8,000 each year. Required: Compute the following: 1. Share in Net Profit or Net Loss for 2016 and 2017 2. Ending Capital of each partner for 2016 and 2017
Partners ABC, DEF, GHI and JKL initially invested P45,000; P60,000; P65,000 and P85,000 each to form a partnership on July 1, 2022. They divide profit and losses based on the following: a. b. C. d. chip RSIY A Annual Salaries of P15,000, P20,000 and P20,000 to ABC, DEF and GHI; 10% interest on original capital to GHI; 25% bonus to JKL of net income; The balance is to be divided into a 4:3:2:1 JKL Each respectively. If ABC and GHI received a total of P57.00 DIFICtio to ABC, DEF, GHI and compute the share of JKL from the net income of the partnership from the net income for 2022,
The XYZ Partnership shows a net profit of P600,000 during the year. If partners X, Y, Z has income ratios of 50%, 30%, and 20%, respectively, How much is Z's share from the net income of the partnerships?
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.
Four M Co., a partnership was formed on January 2016, with four partners, Joy, Ash, Elisha and Gabrielle. Capital contributions were as follows: Joy - P1,000,000; Ash P500,000; Elisha - P500,000; and Gabrielle - P500,000. The partnership agreement provides that each partner shall receive 5% interest on the amount of her capital contribution. In addition, Joy and Ash are to receive salaries of P100,000 and P60,000, respectively, which are to be charged as expenses of the business. The agreement further provides that Elisha shall receive a minimum of P120,000 per annum from the partnership, including amounts allowed as interest on capital and their respective shares of profits. The balance of the profits to be shared in the following proportions: Joy - 30%; Ash - 30%; Elisha - 20%; Joy - 20%. Calculate the amount that must be earned by the partnership during 2016, before any charge for interest on capital or partners' salaries, in order that Joy may receive an aggregate of P250,000,…
The XYZ Partnership shows a net profit of P600,000 during the year. If partners X, Y, Z has income ratios of 50%, 30%, and 20%, respectively, How much is Z's share from the net income of the partnerships?
Ceradoy, Manongsong and Anuran are partners sharing residual profits in the ratio of 3:2:1. The partnership agreement provides for 8% intereston capital and a salary for Manongsong of P80,000 per annum. Profit for 2016 was P840,000 and the year-end balances on partners’ capital accountsare as follows: Ceradoy, P200,000; Manongsong, P150,000 and Anuran, P120,000. What was Anuran’s share in the residual profits for 2016?
AA, BB and CC are partners sharing profits in a 5:3:2 ratio, and with capital balances ofP95,000, P80,000 and P60,000, respectively on December 31, 2015. The partnersdecided to admit DD as a new partner on January 1, 2015. DD will contribute cash ofP80,000 to the partnership and also pay P10,000 for 15% of BB’s share. DD is to have a20% share in profits. After the admission of DD, the total capital will be P330,000 andDD’s capital will be P70,000.After the admission of DD, BB’s capital balance would be: A. 72,600 C. 79,100B. 74,600 D. 81,100