8:43 "l944. On January 1, 2020, Rus and An decided to form a partnership. At the end of the year, apartnership made a net income of P75,000. The capital account of the partnership shows thefollowing transactions.RUSANJANUARY 130,00040,000MAY 16,000JULY 1(12,000)8,000(3,000)(2,000)Assuming that an interest of 20% per annum is given on average capital and the balance of theAUGUST 1ОСТОВER 112,000profits is allocated equally, the allocation of profits should be -5. Pak and Ner are partners who share profits and losses in the ratio of 70:30%, respectively. Pak'ssalary is Php 50,000 and Php 25,000 for Ner. The partners are also paid interest on their averagecapital balances. In 2020, Pak's received 30,000 of interest and Ner, 20,000. The profit and lossallocation are determined after deductions for the salary and interest payments. If Pak's share inthe residual income was P56,000, what was the total partnership income?EndJ GC 8:33 "4996Activity #21. Ah and Par entered into partnership by investing the following assets:АНPARCASH300,000450,000EQUIPMENTS200,000450,000BUILDING3,400,000FURNITURE AND FIXTURES800,000The building is subject to a mortgage of Php 800,000, which is to be assumed by the partnership.The partnership agreement provides that Ah and Par share profits and losses 30 percent and 70percent, respectively.Assuming that the partners agreed to bring their respective capital in proportion to theirrespective profit and loss ratio, and using Par's capital as the base, how much cash is to beinvested by Ah?2. Tha, Rah and Gee entered into partnership by investing the following assets:THARAHGEECASH60,00072,400193,000EQUIPMENT900,000FURNITURE AND FIXTURES40,000219,60015,000Although Gee has contributed the most cash to the partnership, Gee did not have the fullamount of P180,000 available and was force to borrow personally P120,000. The deliveryequipment contributed by Tha has a mortgage of P500,000 and the partnership is to assume theresponsibility for the loan. The partners agree to divide profits and losses 40% to Tha; 40% toRah; and 20% to Gee.The partners further agreed to bring their respective capital interest in proportion to their profitand loss ratio.Using the bonus method, capital transfer among partners should be made3.The partnership contract for the Thick and Thock Partnership provided that Thick is to receiveand annual salary of P70,000, Thock is to receive an annual salary of P50,000, and the remainingprofit or loss is to be divided equally between the two partners. Net income of the Thick andThock Partnership for the year ended December 31, 2021 was P100,000. The closing entry fornet income on December 31, 2021 is a debit to Income Summary for P100,000 and credits toThick Capital and Thock Capital, respectively of:4. On January 1, 2020, Rus and An decided to form a partnership. At the end of the year, apartnership made a net income of P75,000. The capital account of the partnership shows thefollowing transactions.RUSANJANUARY 130,00040,000MAY 16,000JULY 1(12,000)8,000(3,000)12 0001AUGUST 1OCTOBER 112 000

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4. On January 1, 2020, Rus and An decided to form a partnership. At the end of the year, a partnership made a net income of P75,000. The capital account of the partnership shows the following transactions. RUS AN JANUARY 1 MAY 1 JULY 1 | AUGUST 1 ОСТОBER 1 30,000 6,000 40,000 8,000 (3,000) (2,000) Assuming that an interest of 20% per annum is given on average capital and the balance of the (12,000) 12,000 profits is allocated equally, the allocation of profits should be -

4. On January 1, 2020, Rus and An decided to form a partnership. At the end of the year, a partnership made a net income of P75,000. The capital account of the partnership shows the following transactions. RUS AN JANUARY 1 MAY 1 JULY 1 | AUGUST 1 ОСТОBER 1 30,000 6,000 40,000 8,000 (3,000) (2,000) Assuming that an interest of 20% per annum is given on average capital and the balance of the (12,000) 12,000 profits is allocated equally, the allocation of profits should be -

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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Terms of the partnership agreement: 1.1 The partners are entitled to a salary of R18 000 each per month. 1.2 Zozi and Sethu share profits in the ratio of 1:1 respectively. 2. Year-end adjustments: 2.1 An outstanding debt of R2 200 is irrecoverable and must be written off. The allowance for credit losses must be increased to R6 500. 2.2 An amount of R4 500 owed by a debtor was written off as irrecoverable during the year ended 29 February 20.1. The debtor has settled the amount previously written off in full on 25 February 20.2. This transaction is still to be recorded in the books of the business. 2.3 Depreciation for the year must still be provided as follows: Office equipment: 20% according to diminishing balance method. Vehicles: 15% according to straight-line method and have a R15 000 residual value. 2.4 Inventories on hand on 28 February 20.1: Merchandise R45 100 2.5 Only 65% of salaries were paid to partners during…
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