3.14 Cue and Peed entered into a partnership on March 1, 200A. TheyT agreed that Cue, the managing partner was to receive a salary10 neallowance of P 24,000 per year and a bonus of 10% of the net profitafter the salary allowance but before the bonus. The balance is to be distributed in the ratio of their initial capital. Selected ledgeraccounts on December 31, 200A prior to adjustments showed thefollowing balances:Salesgns 22ol bns P 300,000ge gnisdao3,000 ollo)visoo 180,0001sini s10 48,000Sales Returns290swzunod ts Purchases 1Operating Expenses bs la01Stni o1o 48,000200,00000020,0001o g2290x Cue CapitalCue DrawingPeed Capital 0Peed DrawingInventories at year-end werebns I100,00010,000as follows: Officesupplies, P 810 and merchandise, P 50,000. Prepaid insurance of0P 1,200 and accrued expenses of P 400 are to be recognized.Depreciation of P 4,000 is to be provided.REQUIRED: Prepare the Statement of Partners ' Equity for the 10-month period ended December 31, 200A.iD d

Partnership Contract: Partnership contract is an agreement initiated between the partners who…

3.14 Cue and Peed entered into a partnership on March 1, 200A. They agreed that Cue, the managing partner was to receive a salary allowance of P 24,000 per year and a bonus of 10% of the net profit after the salary allowance but before the bonus. The balance is to b e distributed in the ratio of their initial capital. Selected ledger accounts on December 31, 200A prior to adjustments showed the M. following balances: oi Sales inssonge gohsla 2201 bas P 300,000 2990swol 3,000 ollo 0130uod visoo 180,000oo0 Sales Returns Purchases pouna Operating Expenses bs 12s1Stai sTo 48,000 boolle d Cue Capital Cue Drawing Peed Capital Peed Drawing 200,000 100020,000 bns Jor 000 100,000 10,000 as follows: Office Inventories at year-end were supplies, P 810 and merchandise, P 50,000. Prepaid insurance of P 1,200 and accrued expenses of P 400 are to be recognized. Depreciation of P 4,000 is to be provided. REQUIRED: Prepare the Statement of Partners' Equity for the 10- osn1 month period ended December 31, 200A. v

3.14 Cue and Peed entered into a partnership on March 1, 200A. They agreed that Cue, the managing partner was to receive a salary allowance of P 24,000 per year and a bonus of 10% of the net profit after the salary allowance but before the bonus. The balance is to b e distributed in the ratio of their initial capital. Selected ledger accounts on December 31, 200A prior to adjustments showed the M. following balances: oi Sales inssonge gohsla 2201 bas P 300,000 2990swol 3,000 ollo 0130uod visoo 180,000oo0 Sales Returns Purchases pouna Operating Expenses bs 12s1Stai sTo 48,000 boolle d Cue Capital Cue Drawing Peed Capital Peed Drawing 200,000 100020,000 bns Jor 000 100,000 10,000 as follows: Office Inventories at year-end were supplies, P 810 and merchandise, P 50,000. Prepaid insurance of P 1,200 and accrued expenses of P 400 are to be recognized. Depreciation of P 4,000 is to be provided. REQUIRED: Prepare the Statement of Partners' Equity for the 10- osn1 month period ended December 31, 200A. v

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 9E

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4. A and B's partnership agreement provides for an annual salary allowance of P100,0 for A and 10% interest on the weighted average capital balance of B. The remainder is shared equally. During the period, the partnership earned profit of P200,000. B's capital account had a beginning balance of P120,000. B made additional investments of P60,000 on March 1, P40,000 on Sept. 30, and made drawings of P30,000 on Aug. 1 and P9,000 on Nov. 1. Requirement: Compute for the respective shares of the partners in the profit.
Set 1 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 anmum. Profit for 2019 was P840,000 and the year end balances on partner's capital accounts are as follows: Ceradoy, P2000,000; Manongsong, P150,000 and Anuran, P120,000. What was Anuran's share of residual profits for 2019? a. P120,400 b. P126,670 с. Р130,000 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, 2019, 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, 2019 was P480,000, accruing evenly over the year. What are the partners' total share in profits for the year ended June 30,…
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16. The partnership agreement of Santiago and Generales provided that interest of 10% per annum is to be credited to each partner on the basis of average capital balances. A summary of Generales' capital account for the year ended Dec. 31, 2020 follows: P280,000 Balance, Jan. 1 Additional Investments, July 1 80,000 (30,000) P330,000 Withdrawal, August 1 Balance, Dec. 31 The amount of interest that should eventually be credited to Generales' capital is a. P30,500. b. P33,000. P30,750. d. P34,500. С.
The partnership agreement of X and Y provides that 12% interest per year is to be credited to each partner on the basis of average capital balances. A summary of Y capital for the year ended December 31, 2021 is as follows: Jan 1 Balance P840,000, July 2 Additional investment P240,000, August 1 Withdrawal P90,000, Dec. 31 Balance P990,000 What amount of interest should be credited to ⚫
3.13 The partnership of Con and Rad started on June 1, 200C with an initial investment of P 200,000 and P 250,000, respectively. After one year of operations, the partnership reported a loss of P 8,000 after treating interest and salary allowances as expenses. In the partnership contract, the following provisions were indicated: * 10% interest on the original investment * Salaries of P 20,000 and P 48,000 for Con and Rad, respectively. * Con is allowed a bonus of 10% of the net income before interest, salary and bonus allowances. * Residual income: equally REQUIRED: Show how the profit or loss was distributed.
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7. Kwong and Morales entered into a partnership as at Mar. 1, 2019 by the investing P125,000 and P75,000, respectively. They agreed that Kwong, as the managing partner, was to receive a salary of P30,000 per year and a bonus computed at 10% of.the profit after adjustment for the salary; the balance of the profit was to be distributed in the ratio of their original capital balances. On Dec. 31, 2019, normal account balances were as follows: Cash P70,000 Accounts Payable P 60,000 125,000 Kwong, Capital Morales, Capital Kwong, Drawing Morales, Drawing Accounts Receivable 67,000 Furniture & Fixtures 45,000 75,000 Sales Returns 5,000 20,000 Purchases 196,000 30,000 Operating Expenses 60,000 Sales 233,000 Inventories on Dec. 31, 2019 were as follows: supplies, P2,500, merchandise, P73,000. Prepaid insurance was P950 while accrued expenses were P1,550. Depreciation rate was 20% per year. The partners' capital balances on Dec. 31, 2019, after closing the profit and drawing accounts, were:
M, N, and 0 formed a partnership on January 1, 200A with 3.7 investments of P 40,000, P 24,000 and P 20,000, respectively. The partners agreed to the following distribution of profits: Annual salaries allowed: М, Р 4,800; N, P 6,000; 0, Р 6,000 5% interest on the beginning capital. M, the managing partner is allowed a bonus of 20% of the net profit after treating as expenses the partners' salaries, interest, and bonus. Profits after the allowances are to be divided 3:3:4, for M, N, and O, respectively. For the year 200A, the net profit before interest, salaries, and bonus amounted to P 29,400. Cash withdrawals made were M, P 10,200; N, P 12,000; and O, P 10,600. REQUIRED: Prepare a Statement of Partners' Equity for the year ended December 31, 200A.
A and B formed a partnership on March 1 , 20x1. A invested P250,000 and B 150,000. It was agreed that A, will be appointed as the managing partner and he will receive a salary of P60,000 per year and also 10% bonus on the net profit after the adjustment for the salary; the balance of the profit was to be shared in a 62.5:37.5 ratio to A and B, respectively. On December 31, 20x1, the following accounts are available: Cash 140,000 Accounts Payable 120,000 Accounts Receivable 134,000 Sales 466,000 Furniture and Fixtures 90,000 A, capital 250,000 Purchases 392,000 B, capital 150,000 Sales Return and Allowances 10,000 A, drawings (40,000) Operating expenses 120,000 B, drawings (60,000) On December 31, 20x1 the inventories on hand were P146,000; unused supplies P5,000; prepaid insurance were P1,900 (the entity uses the expense method). The accrued liabilities totaled P3,100 and the depreciation of furniture’s is 20%…
Additional information1. The net profit according to the Profit and Loss account amounted to R500 000 on 28February 2021.2. The partnership agreement made provision for the following:1. Interest on capital must be provided at 15% per annum on the balances in the capitalAccounts from 1 March 2020 to 31 August 2020. With effect from 1 September 2019 the interest rate on capital increases to 18% per annum.2. The partners are entitled to the following monthly salaries: Bobby R11 000Vincent R10 0003. Bobby is entitled to a bonus of 15% of the net profit before any appropriations are made.4. Bobby and Vincent share the remaining profits or losses in the ratio 3:2 respectively.
A and B formed a partnership in 20x1. The partnership contract stipulates the following: • P30,000 annual salary to each partner due at each year-end. • Bonus of 10% of profit after salaries and bonus for A • 8% interest on the partners' weighted average capital balances. • Any remaining profit or loss is divided equally. The partnership's ledger shows the following: A, Capital Ref. Date Debit Credit Balance March 1, 20x1 June 1, 20x1 001 30,000.00 30,000.00 20,000.00 098 10,000.00 August 1, 20x1 December 1, 20x1 211 146 20,000.00 40,000.00 5,000.00 35,000.00 B, Capital Date Ref. Debit Credit Balance March 1, 20x1 001 20,000.00 20,000.00 June 1, 20x1 098 10,000.00 10,000.00 August 1, 20x1 146 2,000.00 8,000.00 The partnership's profit, before salaries and bonus, in 20x1 is P60,000. The partners agreed to receive full annual salaries in 20x1. How much is the share of B?