Ables and Galang divide partnership profits and losses solely on the basis of their average capital balances. Ables had P275,000 invested during all of 2019; Galang nad P200,000 invested from January 1 to August 31, and he invested another P75,000 on September 1. If profit was P800,000 during 2019, how much should each partner receive?

Ables and Galang divide partnership profits and losses solely on the basis of their average capital balances. Ables had P275,000 invested during all of 2019; Galang nad P200,000 invested from January 1 to August 31, and he invested another P75,000 on September 1. If profit was P800,000 during 2019, how much should each partner receive?

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 14E

See similar textbooks

Similar questions

The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $10,000 B. $5,000 C. ($12,000) In addition, show the resulting entries to each partners capital account.
Problem #4Distribution of Profits or Losses Based on Partners’ AgreementAbles and Galang divide partnership profits and losses solely on the basis of their average capital balances. Ables had P275000 invested during all of 2018; Galang had P200000 invested form January 1 to August 31, and he invested anotherP75000 on September 1. If profit was P800000 during 2018, how much should each partner receive?
Sagot din po dito?
NAME: SCORE: SECTION: PROFESSOR: Problem #2 Distribution of Profits or Losses Based on Partners' Agreement Ables and Galang divide partnership profits and losses solely on the basis of their average capital balances. Ables had P275,000 invested during all of 2020; Galang had P200,000 invested from January 1 to August 31, and he invested another P75,000 on September 1. If profit was P800,000 during 2020, how much should each partner receive?
Problem 1. Alucard and Chou organized their partnership on 01/01/19. The following entries were made into their capital accounts during 2019. Required: If partnership profits for the year equaled P66,000, indicate the allocations between the partners under the following independent profit-sharing allocation conditions: Interest of 10% is allocated on weighted average capital balance and the remainder is divided equally. A salary of P9,000 will be allocated to Chou; 10% interest on ending capital is allocated to the partners; remainder is divided 60/40 to Alucard and Chou, respectively. Salaries are allocated to Alucard and Chou in the amount of P10,000 and P15,000, respectively and the remainder is allocated in the proportion to weighted average capital balances. A bonus of 10% of partnership profits after bonus is credited to Alucard, a salary of P35,000 is allocated to Chou, a P20,000 salary is allocated to Alucard, 10% interest on weighted capital is allocated, and remainder is…
Problem #6Distribution of Profits or Losses Based on Partners’ AgreementOrosco and Castillo divide partnership profits and losses solely on the basis of their average capital balances. Orosco had P450,000 invested during all of 2018; Castillo had P300,000 invested from January 1 to September 30, and he invested another P200,000 on October 1. If profit was P2,000,000 during 2018, how much should each partner receive?
Distribution of Profits or Losses Based on Partners' Agreement Ables and Galang divide partnership profits and losses solely on the basis of their average capital balances. Ables had 0275,000 invested during all of 2019: Galang had P200,000 invested from January 1 to August 31, and he invested another P75,000 on September 1. If profit was P900,000 during 2019, how much should each partner receive?
Exercise3: Retirement of a Partner G, H and I are partners whose capital balances as of January 1, 2019 are in the same proportion as their share in profit of 20:30:50. As of January 1, 2019, total partnership assets amount to P150,000 with the liabilities at P60,000. Their additional investments and withdrawals for 2019 are as follows: Additional Investments Drawing G P15,000 P9,000 H 18,000 10,000 I 12,000 H retires as of December 1, 2019, G and I agreed to a settlement for his share in equity plus 10% thereof after three months. Pending settlement, the amount due to H shall bear an interest of 12%. The partnership net income for 2019, prior to the above-mentioned interest, amounts to P32,400. Instructions: Determine the amount due to H as of December 31, 2019. Make the entries incidental to the retirement of H under each of the following assumptions: The additional consideration is to…
Profit and Loss Distribution Problem for AccountingAbles and Galang divide partnership profits and losses solely on the basis of their average capital balances. Ables had P275,000 invested during all of 2021. Galang invested P200,000 from January 1 to August 31, and he invested another P75,000 on September 1. If profit was P800,00 during 2021, how much should each partner receive?
PLEASE HELP ME
Problem #17 Rules for the Distribution of Profits or Losses