11. Love and Faith have been operating an accounting firm as partners for a number of years and at the beginning of 2016, their capital balances were P120,000 and P150,000, respectively. During 2016, Love invested an additional P20,000 on April 1 and withdrew P12,000 on August 30. Faith withdrew P24,000 on May 1 and invested P10,000 on November 1. In addition, Love and Faith withdrew their salary allowances of P36,000 and P42,000, respectively. At year-end 2016 total capital of the Love and Faith partnership was P360,000. Love and Faith share income after salary allowances in a ratio of 55:45. The share of Love on the 2016 net income is:
11. Love and Faith have been operating an accounting firm as partners for a number of years and at the beginning of 2016, their capital balances were P120,000 and P150,000, respectively. During 2016, Love invested an additional P20,000 on April 1 and withdrew P12,000 on August 30. Faith withdrew P24,000 on May 1 and invested P10,000 on November 1. In addition, Love and Faith withdrew their salary allowances of P36,000 and P42,000, respectively. At year-end 2016 total capital of the Love and Faith
The share of Love on the 2016 net income is:
12. A and B have capital balances of P65,000 and P35,000 and share profits 3:2. C is admitted as a partner and is given a 25% interest in the firm upon investing P40,000 cash. Profits are to be shared 5:3:2 by A, B and C. D subsequently enters the partnership by investing P25,000 for a 20% interest in assets and a 20% share of the firm’s profits. Former
partners share the balance of profits in their original ratio. A has difficulty getting along with D and withdraws from the partnership. The partnership pays P73,000 cash for A’s interest.
How much are the capital balances of B, respectively after A’s withdrawal under the bonus method?
13. X, Y and Z are partners dividing
income is to be considered as having been realized proportionately during the period. The partnership estimated net income for 19x9, P480,000. Prior to her retirement, Z paid personal expenses of P15,000 from the partnership funds. The partnership, on the other hand, collected P50,000 from personal receivable of Z and deposited the same for the
account of the partnership.
How much is the total amount due to Z as of the date of retirement?
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