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?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

See similar textbooks

Related questions

Q: If profit was 800,000 during 2018, how much should each partner receive?

A: We know that a partnership firm is funded by capital invested by partners. Hence any profit earned…

Q: Coburn (beginning capital, $60,000) and Webb (beginning capital $90,000) are partners. During 2020,…

A: Net income earned by a partnership is distributed between partners at the end of period as per the…

Q: ee are partners, sharing earnings in the ratio of 3:4:6: accounts on December 31, 2019 are as…

A: Given as, Bench- P 1,000 Mark- P 25,000 Spencer- P 25,000 Lee- P 9,000

Q: At September 30, 2021, C. Saber and J. Wong, the two partners of City Landscaping, had capital…

A: Partnership is the relation between two or more person, It has the following characteristicsThey…

Q: 14. The income summary of Cabatu and Dacua Partnership for the year ended December 31, 2020 show a…

A: partners capital account prepare

Q: Farrell and Jimmy enter into a partnership agreement on May 1, 2018. Farrell contributes $30,000 and…

A: Lets understand the basics. Partnership is an agreement between two or more person who work together…

Q: On January 1, 2021, Kobe, Lebron, and Michael formed a partnership with respective capital…

A: partnership is form of business where two or more person join their hands in order to start the…

Q: Coburn (beginning capital, $56,000) and Webb (beginning capital $92,000) are partners. During 2022,…

A: Journal entries refer to recording of the events into the original books of accounts and it reports…

Question

100%

Problem #4
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 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?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

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?
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?
PLEASE HELP ME
Elisa Diaz and Ma. Concepcion Manalo partnership solution
Question Current Attempt in Progress Coburn (beginning capital, $57,000) and Webb (beginning capital S 87,000) are partners. During 2022, the partnership earned net income of $66, 000, and Coburn made drawings of $17, 000 while Webb made drawings of $23, 000 (c) Assume the partnership income- sharing agreement calls for income to be divided with a salary of $37, 000 to Cobürn and $32.000 to Webb, interest of 11% on beginning capital, and the remainder divided 50%-50%, Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) \table[[Account Titles and Explanation, Debit]] eTextbook and Media Attempts: 0 of 3 used (d)
Need a solution to this problem.
Please answer Part C Please show work.
Problem #5 SCORE: PROFESSOR: Distribution of Profits or Losses Based on Partners' Agreement Abad, Aglugub, and Onate agreed to share profits and losses according to the ratio of their respective investments at the beginning of the year of P300,000, P250,000, and P450,000. Calculate the share of each partner under the following conditions: (a) P270,000 profit; (b) P240,000 loss.
NAME: SCORE: SECTION: PROFESSOR: Problem #8 amission by Purchase of Interest or Investment of Assets castro and Falceso are partners who share profits and losses in a ratio of 2:3, espectively, and have the following capital balances on Sept. 30, 2020: Castro, Capital, p100,000 Cr. and Falceso, Capital, P150,000 Cr. The partners agreed to admit Garachico to the partnership. Required: Calculate the capital balances of each partner after the admission of Garachico, assuming that bonuses are recorded when appropriate for each of the following assumptions: 1. Garachico paid Castro P50,000 for 40% of his interest. 2. Garachico invested P50,000 for a one-sixth interest in the partnership. 3. Garachico invested P50,000 for a 25% interest in the partnership. 4. Garachico invested P50,000 for a 15% interest in the partnership.
NAME: SCORE: SECTION: PROFESSOR: Problem #4 tinc and Galang divide partnership profits and losses solely on the basis of their rage capital balances. Ables had P275,000 invested during all of 2018; Galang had 0200.000 invested from January 1 to August 31, and he invested another P75,000 on Sentember 1. If profit was P800,000 during 2018, how much should each partner receive? ionc and Fingncial Reportin