Exercise 3-9 (Division of Profit under Various Assumptions)The capital accounts of Bondoc and Barba at the end of the fiscal year 2014 are as follows:Barbie, CapitalJanuary 1 BalanceMay 1 InvestmentOctober 1 WithdrawalP210,00090,000P 60,000Carla, CapitalJanuary 1 BalanceOctober 1 WithdrawalP150,000P30,000The partnership profit for the year ended December 31, 2014 is P300,000.Instructions: Give the journal entries to record the transfer of profit to the capital accounts undereach of the following assumptions: (Show the necessary computations after the journal entriesas an explanation for each entry).1. Profit is divided 60% to Carla and 40% to Barbie.2. Profit i divided in the ratio of capital balances at the beginning of the period.3. Profit is divided in the ratio of average capital.4. Interest at 10% is allowed on average capital and the balance of proft is divided in theratio of 40% and 60% for Barbie and Carla respectively.5. Salaries of P60,000 and P48,000 are allowed to Carla and Barbie, respectively, and thebalance of profit is divided in the ratio of capital balances at the end of the period.6. Carla is allowed a bonus of 33 1/3% of profit after bonus, and the balance of the proft isdivided in the ratio of the average capital.You may modify your answer sheet to fit your solution.Follow the instructions strictly. Answer what is asked only.Note:

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Instructions: Give the journal entries to record the transfer of profit to the capital accounts under each of the following assumptions: (Show the necessary computations after the journal entries as an explanation for each entry).

Instructions: Give the journal entries to record the transfer of profit to the capital accounts under each of the following assumptions: (Show the necessary computations after the journal entries as an explanation for each entry).

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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Question

Exercise 3-9 (Division of Profit under Various Assumptions)
The capital accounts of Bondoc and Barba at the end of the fiscal year 2014 are as follows:
Barbie, Capital
January 1 Balance
May 1 Investment
October 1 Withdrawal
P210,000
90,000
P 60,000
Carla, Capital
January 1 Balance
October 1 Withdrawal
P150,000
P30,000
The partnership profit for the year ended December 31, 2014 is P300,000.
Instructions: Give the journal entries to record the transfer of profit to the capital accounts under
each of the following assumptions: (Show the necessary computations after the journal entries
as an explanation for each entry).
1. Profit is divided 60% to Carla and 40% to Barbie.
2. Profit i divided in the ratio of capital balances at the beginning of the period.
3. Profit is divided in the ratio of average capital.
4. Interest at 10% is allowed on average capital and the balance of proft is divided in the
ratio of 40% and 60% for Barbie and Carla respectively.
5. Salaries of P60,000 and P48,000 are allowed to Carla and Barbie, respectively, and the
balance of profit is divided in the ratio of capital balances at the end of the period.
6. Carla is allowed a bonus of 33 1/3% of profit after bonus, and the balance of the proft is
divided in the ratio of the average capital.
You may modify your answer sheet to fit your solution.
Follow the instructions strictly. Answer what is asked only.
Note:

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