A and B formed a partnership. The partnership agreement stipulates the following:Monthly salaries of P6,000 for A and P2,000 for B.• 20% bonus to A, after deductions for salary, interest, and bonus.10% interest on the weighted average capital of B.Any remaining amount is shared equally.The partnership's records show the following:Revenues150,000(120,000)30,000Expenses (including salary, interest, and bonus)ProfitThe movements in B's capital account are as follows:B. Capital60,000beg.Aug. 1 withdrawal30,00020,000Mar. 31 additional investment40,000Oct. 1 additional investment10,000Dec. 31 additional investmentend.100,000How much is the share of B in the partnership profit?

Weighted Average capital of B = 60,000×312+ 80,000×412+ 50,000×212+ 90,000×312+100,000×012…

Answered: A and B formed a partnership. The…

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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The partnership contract of Robert Florence and Karen Partnership provided for the sharing of net income and losses as follows:A) Salaries of $30,000 to Robert, $28,000 to Florence and $26,000 to Karen.B) Interest of 10% a year on average capital balances.C) Any residual income or loss in the ration of 3:5:2 to Robert, Florence, and Karen respectively. The net income for the year is $140,000. The average capital balances were $60,000 for Robert, $40,000 for Florence and $100,000 for Karen. Prepare a journal entry to distribute the profit. Show details of the calculation in the space provided.
Required information [The following information applies to the questions displayed below.] Ramer and Knox began a partnership by investing $88,000 and $132,000, respectively. During its first year, the partnership earned $255,000. Prepare calculations showing how the $255,000 income is allocated under each separate plan for sharing income and loss. 3. The partners agreed to share income by giving a $69,000 per year salary allowance to Ramer, a $43,000 per year salary allowance to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $255,000. Note: Enter all allowances as positive values. Enter losses as negative values. Net Income Salary allowances Interest allowances Total salary and interest Balance of income Balance allocated equally Balance of income Shares of the partners Ramer Saved Knox Total
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Emerson and Dakota formed a partnership dividing income as follows: 1. Annual salary allowance to Emerson of $34,000 2. Interest of 10% on each partner's capital balance on January 1 3. Any remaining net income divided equally. Emerson and Dakota had $34,000 and $142,000, respectively, in their January 1 capital balances. Net income for the year was $230,800. How much net income should be distributed to Dakota?
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X and Y are partners and have beginning capital balances of P 360,000 and P 600,000, respectively. Partnership profits and losses are allocated as follows: salaries of P 160,000 and P 200,000 to X and Y, respectively; 10% interest on their beginning capital balances, any remaining profit is divided equally. Partnership profit of P 600,000 is allocated as follows: a. X – P 300,000; Y – P 300,000 b. X – P 280,000; Y – P 320,000 c. X – P 268,000; Y – P 332,000 d. X – P 192,000; Y – P 408,000
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The given for B is 80,000
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