3. Partnership Income Distribution: For partnerships G, If partner C’s total share of the partnership’s net income 300,000 and Partner C’s Interest on original Capital Balance is 80,000 and Partner C’s share of the remainder of the partnership’s net income is 120,000, how much is Partner C’s allowance? A. 120,000 B. 100,000 C. 80,000 D. 60,000 E. None of the above

3. Partnership Income Distribution: For partnerships G, If partner C’s total share of the partnership’s net income 300,000 and Partner C’s Interest on original Capital Balance is 80,000 and Partner C’s share of the remainder of the partnership’s net income is 120,000, how much is Partner C’s allowance? A. 120,000 B. 100,000 C. 80,000 D. 60,000 E. None of the above

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 6MC: Juan contributes marketable securities to a partnership. The book value of the securities is $7,000...

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Juan contributes marketable securities to a partnership. The book value of the securities is $7,000 and they have a current market value of $10,000. What amount should the partnership record in Juans Capital account due to this contribution? A. $10,000 B. $7,000 C. $3,000 D. none of the above
If the net income of the partnership is P 250,000 and the profit/loss ratio is 1:3:2 for A, B and C, respectively, how much is the share of C in the net income? A. P 50,000 B. P 41,667 C. P 125,000 D. P 83,333
PARTNERSHIP INCOME DISTRIBUTION: For partnership Y, if total partners salary allowances are 300,000, total interest on the partners’ original capital balances is 400,000, and the remainder of the partnership’s net income is 200,000, how much is the total partnership net income? a. 900,000 b. 800,000 c. 300,000 d. 100,000 e. None of the above
PARTNERSHIP INCOME DISTRIBUTION: For partnership H, if Partner D’s total share of the partnership’s net income 300,000 and Partner D’s salary allowance is 120,000 Partner D’s share of the remainder of the partnership’s net income is 150,000, how much is Partner D’s interest on original capital balance? a. 50,000 b. 40,000 c. 30,000 d. 20, 000 e. None of the above
The AB Partnership has the following plan for the distribution of partnership net income (loss) as shown in the image. Calculate the distribution of partnership net income (loss) for each independent situation below. For each situation, assume the average capital balance of A is $140,000 and of B is $240,000. A: Partnership net income is $360,000 B: Partnership net income is $240,000 C: Partnership net loss is $40,000
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1. The ABC Partnership reports net income of P60,000. If Partners A, B, and C have income ratio of 50%, 30%, and 20%, respectively. What is the share of Partner C from the net income of the partnership, if he was given a capital ratio of 25%? 2. The capital balances in DEA Partnership are: D, capital P60,000; E, capital P50,000; and A, capital P40,000 and income ratios are: 5:3:2, respectively. The DEAR Partnership is formed by admitting R to the firm with cash investment of P60,000 for a 25% interest in capital. What is the amount of bonus to be credited to A, capital in admitting R? 3. Ranken purchases 50% of Lark’s capital interest in the K and L partnership for P22,000. If the capital balances of Kim and Lark are P40,000 and P30,000, respectively, Ranken’s capital balance following the purchase is
Requirement: Compute for the respective shares of the partners in | shared equally, while losses on a 70:30 ratio. The partnership PROBLEM 3: EXERCISES 1. Partners A and B share in profits and los es on a 70:30 ratio after salaries of P80,000 for A and P40,000 or B. The business earned profit of P180,000 before deduction or the salaries. Requirements: a. Compute for the partners' respective share in the profit. b. Provide the journal entries (the salar are withdrawn periodically). for annual salary 2. A and B's partnership agreement provi allowances of P160,000 for A and P80, for B. Profits are earned profit of P200,000. Reguirement: Compute for the respective shares of the partners in the profit.
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X and Y are partners and have beginning capital balances of P 360,000 and P 600,000 respectively. Partnership profits and losses are allocated as follows salaries of P 160,000 and P 200,000 to X and Y, respectively, 10% interest on their beginning capital balances, any remaining profit is divided equally Partnership profit of P 600,000 is allocated as follows: A. X =P 300,000,V-P 300,000 B. X =P.280,000,Y-P320,000 C. X =P 2600. V - P * 332000 D. X = P * 192000Y = P * 40B, 0