3.16 After six months of operations, the partnership of Pat, Neri, and Cip made a profit of P 372,000 after deducting the partners' Cip made a profit of P 372,000 after deducting the partner interest and salary allowances but before the bonus allowance es Cip, the managing partner. Their original investments on January 1, 200G were P 200,000, P 300,000, and P 500,000 for Pat, Neri, and Cin respectively. Later, they agreed to adjust their capitals as follows: P 240,000 360,000 Pat Neri 400,000 P1,000,000 Cip Total Their partnership contract contains the following provisions as to the profit and loss sharing ratio: 6% interest will be allowed on the original capital%3; Annual salaries: P 120,000 144,000 180,000 • Cip is entitled to a bonus of 20% of the net profit after the interest and salary allowances but before the bonus. Remainder of the profit is to be divided using the adjusted Pat Neri Cip capital ratio. The partners withdrew the following amounts during the period: P 30,000 for Pat, P 40,000 for Neri, and P 50 000 for Ci

3.16 After six months of operations, the partnership of Pat, Neri, and Cip made a profit of P 372,000 after deducting the partners' Cip made a profit of P 372,000 after deducting the partner interest and salary allowances but before the bonus allowance es Cip, the managing partner. Their original investments on January 1, 200G were P 200,000, P 300,000, and P 500,000 for Pat, Neri, and Cin respectively. Later, they agreed to adjust their capitals as follows: P 240,000 360,000 Pat Neri 400,000 P1,000,000 Cip Total Their partnership contract contains the following provisions as to the profit and loss sharing ratio: 6% interest will be allowed on the original capital%3; Annual salaries: P 120,000 144,000 180,000 • Cip is entitled to a bonus of 20% of the net profit after the interest and salary allowances but before the bonus. Remainder of the profit is to be divided using the adjusted Pat Neri Cip capital ratio. The partners withdrew the following amounts during the period: P 30,000 for Pat, P 40,000 for Neri, and P 50 000 for Ci

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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n the year ended 31/12/2018 total income of Palestine co,20,000 if A partner received 5,000 annual salary and reaming divided equally between the two partners A and B so Finally the reamig profit should be allocated to partners will be 15,000 Select one: True False
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8 A, B and C formed a partnership on January 1, 2007 with investments of $200,000, $300,000 and $400,000 respectively. The profit and loss sharing ratio is 20% for A, 30% for B and 50% for C. For division of income, they have agreed: 1. interest of 10% of beginning capital balance each year 2. annual compensation of $10,000 for B. The partnership earns $500,000 in its first year of operation. Each partner draws $1000 a month. What is B’s share of the net income What is C’s capital balance at the end of the first year
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Light, Day and Fire of Sunshine Partnership with a profit and loss sharing ratio of 25%, 15% and 60% respectivelyhas the following account balances:>DUring June, some non cash assets were sold that resulted to a loss of P20,000. Liquidation expenses of P31,000 were paid and additional expenses amounting to P24,000 were expected to be incurred through the following month of liquidating the partnership. > Liabilities to outsiders amounting to P79,000 were paid. > For Fire to receive P31,000 on the first distribution of cash, How much is the book value of the unsold Non-cash assets ?
3.14 Cue and Peed entered into a partnership on March 1, 200A. They T agreed that Cue, the managing partner was to receive a salary 10 neallowance 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 following balances: Salesgns 22ol bns P 300,000 ge gnisda o3,000 ollo) visoo 180,000 1sini s10 48,000 Sales Returns 290sw zunod ts Purchases 1 Operating Expenses bs la01Stni o1o 48,000 200,000 00020,000 1o g 2290x Cue Capital Cue Drawing Peed Capital 0 Peed Drawing Inventories at year-end were bns I 100,000 10,000 as follows: Office supplies, P 810 and merchandise, P 50,000. Prepaid insurance of 0P 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…
The following balance sheet for the partnership of Juan, Ponce and Enrile were taken from the books on November 30, 2011: Cash P 80,000 Liabilities P 200,000 Other Assets 720,000 Juan, Capital 148,000 Ponce, Capital 260,000 Enrile, Capital 192,000 The partners’ agreed to distribute the profits as follows; Annual salaries to Juan and Ponce of P 6,000 each.6 % interest on beginning capital10 % bonus to Ponce (the bonus to be treated as an expense after salaries and interest)Remaining profit – 40:40:20 respectively. If the net income of the partnership was P 122,400 during the two-month period ending December 31, 2011, the total share of Ponce in the net income is; a. P 61,440 b. P 55,600 c.…
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