13. S. Tayag and I. Urios formed a partnership. The partnership agreement provides for annual salary allowances of 110,000 for Tayag and 90,000 for Urios. The partners share profits equally and losses in 60:40 ratio. The partnership had an income of 180,000 for the year before any allowance to partners. What amount should be credited to each partner's capital account as a result of the distribution of the partnership income? Tayag Urios A. 90,000 90,000 B. 96,000 84,000 C. 98,000 82,000 D. 100,000 80,000 14. The Vina - Wanda partnership was formed on January 3, 2020. Under the partnership agreement, each partner has an equal initial capital balance accounted for under the bonus method. Partnership net income or loss is allocated 60% to Vina and 40% to Wanda. To form the partnership, Vina originally contributed assets costing 150,000 with a fair value of 300,000 on Janaury 3, 2020, while Wanda contributed 100,000 in cash. Withdrawals by the partners during the fiscal year totaled 15,000 by Vina and 45,000 by Wanda. The partnership net income for fiscal year 2020 was 225,000. Wanda's initial capital balance in the partnership is А. 100,000 В. 125,000 С. 200,000 D. 300,000 15. Using the same information in No. 15, what is the share of Vina in the partnerhsip's net income? A. 75,000 В. 135,000 C. 90,000 D. 112,500
13. S. Tayag and I. Urios formed a partnership. The partnership agreement provides for annual salary allowances of 110,000 for Tayag and 90,000 for Urios. The partners share profits equally and losses in 60:40 ratio. The partnership had an income of 180,000 for the year before any allowance to partners. What amount should be credited to each partner's capital account as a result of the distribution of the partnership income? Tayag Urios A. 90,000 90,000 B. 96,000 84,000 C. 98,000 82,000 D. 100,000 80,000 14. The Vina - Wanda partnership was formed on January 3, 2020. Under the partnership agreement, each partner has an equal initial capital balance accounted for under the bonus method. Partnership net income or loss is allocated 60% to Vina and 40% to Wanda. To form the partnership, Vina originally contributed assets costing 150,000 with a fair value of 300,000 on Janaury 3, 2020, while Wanda contributed 100,000 in cash. Withdrawals by the partners during the fiscal year totaled 15,000 by Vina and 45,000 by Wanda. The partnership net income for fiscal year 2020 was 225,000. Wanda's initial capital balance in the partnership is А. 100,000 В. 125,000 С. 200,000 D. 300,000 15. Using the same information in No. 15, what is the share of Vina in the partnerhsip's net income? A. 75,000 В. 135,000 C. 90,000 D. 112,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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:13. S. Tayag and T. Urios formed a
partnership. The partnership
agreement provides for annual salary
allowances of 110,000 for Tayag and
90,000 for Urios. The partners share
profits equally and losses in 60:40
ratio. The partnership had an income
of 180,000 for the year before any
allowance to partners. What amount
should be credited to each partner's
capital account as a result of the
distribution of the partnership
income?
Tayag Urios
А. 90,000 90,000
В. 96,000 84,000
С. 98,000 82,000
D. 100,000
80,000
14. The Vina – Wanda partnership was
formed on January 3, 2020. Under the
partnership agreement, each partner
has an equal initial capital balance
accounted for under the bonus
method. Partnership net income or
loss is allocated 60% to Vina and 40%
to Wanda. To form the partnership,
Vina originally contributed assets
costing 150,000 with a fair value of
300,000 on Janaury 3, 2020, while
Wanda contributed 100,000 in cash.
Withdrawals by the partners during
the fiscal year totaled 15,000 by Vina
and 45,000 by Wanda. The partnership
net income for fiscal year 2020 was
225,000. Wanda's initial capital
balance in the partnership is
А. 100,000
В. 125,000
С. 200,000
D. 300,000
15. Using the same information in No. 15,
what is the share of Vina in the
partnerhsip's net income?
А. 75,000
В. 135,000
С. 90,000
D. 112,500
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