3.2 Partners Pedro and Gil divide profits and losses on the basis of their 1 30,000 Sept. 4. 6,750 Jan. 1 33,000 weighted average capital. Their capital accounts on December 31 200B are shown below. Pedro Capital Gil Capital Mar. 9 5,000 Jan. Oct. 26 8,000 July 5 10,000 Apr. 9 15,000 Sept. 22 10,000 The net profit for 200B was P 59,200. The partners have agreed that changes in capital during the first half of the month are considered as effective the beginning of the month and changes during the second half of the month are considered effective as of the beginning of the following month. REQUIRED: Show how the net profit will be distributed to the partners.

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Chapter1: Financial Statements And Business Decisions
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3.2 Partners Pedro and Gil divide profits and losses on the basis of their
1 30,000 Sept. 4. 6,750 Jan. 1 33,000
REQUIRED: Show how the net profit will be divided if the withdrawals
Chapter 3
Division of Profits
weighted average capital. Their capital accounts on December 31
200B are shown below.
Pedro Capital
Gil Capital
Mar. 9 5,000
Jan.
Apr. 9 15,000
Oct. 26 8,000 July 5 10,000
Sept. 22 10,000
The net profit for 200B was P 59,200. The partners have agreed that
changes in capital during the first half of the month are considered as
effective the beginning of the month and changes during the second
half of the month are considered effective as of the beginning of the
following month.
REQUIRED: Show how the net profit will be distributed to the partners.
3.3 Bi, Ni, and Tin formed a partnership and agreed to maintain an
average investment of P 100,000, P 50,000 and P 50,000,
respectively. Interest on any capital excess or deficiency is to be
computed at 10%. After the interest allowance, the partners are to
share the balance in the ratio of 5:3:2 for Bi, Ni, and Tin,
respectively. The actual amounts invested during the year were: Bi, P
120,000; Ni, P 60,000; and Tin, P 35,000. Net profit was P 12,500.
REQUIRED: How should the net income be distributed?
3.4 Vir and Housen are partners sharing profits in the ratio of 3:2. As per
their agreement, each partner is allowed to withdraw P 30,000
annually. Both partners withdrew this amount during 200C.The het
profit in 200C was P 120,000.
REQUIRED: Show how the net profit will be divided if the withdrawar
are considered as:
a. Partners' drawings
b. Partners' salaries
Transcribed Image Text:3.2 Partners Pedro and Gil divide profits and losses on the basis of their 1 30,000 Sept. 4. 6,750 Jan. 1 33,000 REQUIRED: Show how the net profit will be divided if the withdrawals Chapter 3 Division of Profits weighted average capital. Their capital accounts on December 31 200B are shown below. Pedro Capital Gil Capital Mar. 9 5,000 Jan. Apr. 9 15,000 Oct. 26 8,000 July 5 10,000 Sept. 22 10,000 The net profit for 200B was P 59,200. The partners have agreed that changes in capital during the first half of the month are considered as effective the beginning of the month and changes during the second half of the month are considered effective as of the beginning of the following month. REQUIRED: Show how the net profit will be distributed to the partners. 3.3 Bi, Ni, and Tin formed a partnership and agreed to maintain an average investment of P 100,000, P 50,000 and P 50,000, respectively. Interest on any capital excess or deficiency is to be computed at 10%. After the interest allowance, the partners are to share the balance in the ratio of 5:3:2 for Bi, Ni, and Tin, respectively. The actual amounts invested during the year were: Bi, P 120,000; Ni, P 60,000; and Tin, P 35,000. Net profit was P 12,500. REQUIRED: How should the net income be distributed? 3.4 Vir and Housen are partners sharing profits in the ratio of 3:2. As per their agreement, each partner is allowed to withdraw P 30,000 annually. Both partners withdrew this amount during 200C.The het profit in 200C was P 120,000. REQUIRED: Show how the net profit will be divided if the withdrawar are considered as: a. Partners' drawings b. Partners' salaries
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