3.2 Partners Pedro and Gil divide profits and losses on the basis of their1 30,000 Sept. 4. 6,750 Jan. 1 33,000REQUIRED: Show how the net profit will be divided if the withdrawalsChapter 3Division of Profitsweighted average capital. Their capital accounts on December 31200B are shown below.Pedro CapitalGil CapitalMar. 9 5,000Jan.Apr. 9 15,000Oct. 26 8,000 July 5 10,000Sept. 22 10,000The net profit for 200B was P 59,200. The partners have agreed thatchanges in capital during the first half of the month are considered aseffective the beginning of the month and changes during the secondhalf of the month are considered effective as of the beginning of thefollowing 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 anaverage investment of P 100,000, P 50,000 and P 50,000,respectively. Interest on any capital excess or deficiency is to becomputed at 10%. After the interest allowance, the partners are toshare the balance in the ratio of 5:3:2 for Bi, Ni, and Tin,respectively. The actual amounts invested during the year were: Bi, P120,000; 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 pertheir agreement, each partner is allowed to withdraw P 30,000annually. Both partners withdrew this amount during 200C.The hetprofit in 200C was P 120,000.REQUIRED: Show how the net profit will be divided if the withdrawarare considered as:a. Partners' drawingsb. Partners' salaries

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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 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.

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.

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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Exercise 3-7. Distribution of Net Loss to partners Carmela and Ferdinand formed a partnership on January respectively. The partnership reported a net loss of P80,000. 1, 2023, with initial investments of P300,000 and P500,000, The partnership agreement provides that profit or loss shall be distributed accordingly: • Monthly salary of P10,000 and P5,000 respectively for Carmela and Ferdinand, . 10% interest on partners' original capital. . 20% bonus to Carmela based on net income before interest, and salary. •The remainder is shared in the ratio of 3:2 respectively. Required: Determine the share of Carmela and Ferdinand in the net loss.
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32. Partners X, Y and Z had average capital account balances during the P400,000, P500,000 and P100,000, respectively. The partnership agreement provides for the following division of profits and losses. Interest: 6% on average capital balances of each partner Salaries: X, P100,000; Y, P150,000; and Z none Remainder: X 20%; Y 30%; Z 50%. If the aggregate share of X in the profit is P112,000, how much should have been the partnership profit? year of