Crush and Ni are in partnership and prepare their accounts to December 31 each year. On July 1, 2015, Sir joined the partnership. Profit sharing arrangements are: 6 months to June 30, 2015 6 months to December 31, 2015 Salary Allowances Crush P15,000 P25,000 Share in residual profit Crush 60% 40% Ni 40% 40% Sir - 20% The partnership’s net income for the year ended December 31, 2015 was P350,000 accruing evenly over the year. What are the partner’s total profit shares for the year ended December 31, 2015?
Crush and Ni are in partnership and prepare their accounts to December 31 each year.
On July 1, 2015, Sir joined the partnership. Profit sharing arrangements are:
6 months to
June 30, 2015
6 months to
December 31, 2015
Salary Allowances Crush P15,000 P25,000
Share in residual profit Crush 60% 40%
Ni 40% 40%
Sir - 20%
The partnership’s net income for the year ended December 31, 2015 was P350,000
accruing evenly over the year. What are the partner’s total profit shares for the year
ended December 31, 2015?
Peeta, Katniss and Gale formed a partnership on January 1, 2015 and contributed P150,000,
P200,000 and P250,000, respectively. Their articles of co-partnership provide that the operating
income be shared among the partners as follows: as salary, P24,000 for Peeta, P18,000 for Katniss
and P12,000 for Gale; interest of 12% on the average capital during 2015 of the three partners and
the remainder in the ratio of 4:2:4, respectively. The operating income for the year-ended December
31, 2015 amounted to P200,000. Peeta contributed additional capital of P30,000 on July 1 and
made a drawing of P10,000 on October 1. Katniss contributed additional capital of P20,000 on
August 1 and made a drawing of P10,000 on October 1 and Gale made a drawing of P30,000 on
November 1.
Required: Prepare the profit distribution schedule and statement of changes in partner’s equity for
the “Love Triangle Partnership”.
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