Malaluan and Baral are in partnership. They share profits in the ratio 3:2 and closetheir accounts on June 30 each year.On Jan. 1, 2016, Castro joined the partnership.The profit-sharing ratio was revised to become Malaluan 50%, Baral 25% and Castro25%, after providing for annual salaries as follows: Baral, P20,000 and Castro,P12,000. The partnership profit for the year ended June 30, 2016 was P480,000,accruing evenly over the year. What are the partners' total share in profits for theyear ended June 30, 2016?MalaluanBaralCastroP256,000P248,000а.P162,000P62,000P64,000P66,000b.P168,000P166,000P264,000P264,000С.d.P156,000P60,000

Partnership means where two or more person joins together to do business and share profits and…

Malaluan and Baral are in partnership. They share profits in the ratio 3:2 and clos- their accounts on June 30 each year.On Jan. 1, 2016, Castro joined the partnership The profit-sharing ratio was revised to become Malaluan 50%, Baral 25% and Castr 25%, after providing for annual salaries as follows: Baral, P20,000 and Castra P12,000. The partnership profit for the year ended June 30, 2016 was P480,000 accruing evenly over the year. What are the partners' total share in profits for the year ended June 30, 2016? Malaluan Baral Castro P162,000 P256,000 P248,000 P264,000 P264,000 а. P62,000 P64,000 P66,000 P60,000 b. P168,000 P166,000 P156,000 C. d.

Malaluan and Baral are in partnership. They share profits in the ratio 3:2 and clos- their accounts on June 30 each year.On Jan. 1, 2016, Castro joined the partnership The profit-sharing ratio was revised to become Malaluan 50%, Baral 25% and Castr 25%, after providing for annual salaries as follows: Baral, P20,000 and Castra P12,000. The partnership profit for the year ended June 30, 2016 was P480,000 accruing evenly over the year. What are the partners' total share in profits for the year ended June 30, 2016? Malaluan Baral Castro P162,000 P256,000 P248,000 P264,000 P264,000 а. P62,000 P64,000 P66,000 P60,000 b. P168,000 P166,000 P156,000 C. d.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Juan and Pedro’s partnership agreement shows that they will receive a salary of P150,000 and P100,000, respectively. Should there be a remainder, such will be divided based on their average capital balances. Below shows information in their respective capital balances:Juan, capital ending balance – P 3,000,000Debits: June 1 - P 500,000Credits: March 30 – P 1,000,000Credits: October 30 – P 500,000 Pedro, capital ending capital balance – P 4,500,000Credits: May 1 – P 1,000,000Credits: August 31 – P 1,000,000Income for the year amounted to P 300,000. How much profit will be distributed to Juan?
Kane and Mutinta owns a shop at Lusaka city Centre. They are in partnership business preparing books of accounts for each year. The partnership shares profit and losses in the ratio of 2: 7 respectively. On 1 September 2022, Brown was admitted to the partnership and the profit and loss were to be shared between Kane, Brown and Mutina in the ratio of 4:5:8 respectively. Partnership salaries were K35,000 per quarter of the year for each partner up to 31th August 2022. From 1 September 2022, the partners salaries were K70,000 per annum for each for Kane and Brown and K55,000 per month for Mutinta. The profits and losses for the year ending 31st December was K170,000 loss for the year 2021 and a profit of K400,000 for the year 2022: Required: Show how the Profit will be shared for each year and calculate the tax payable for each partner.
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.
On March 1, Eckert and Kelley formed a partnership. Eckert contributed $75,000 cash, and Kelley contributed land valued at $60,000 and a building valued at $90,000. The partnership also took Kelley's $65,000 long-term note payable associated with the land and building. The partners agreed to share income as follows: Eckert gets an annual salary allowance of $30,500, both get an annual interest allowance of 10% of their initial capital investment, and any remaining income or loss is shared equally. On October 20, Eckert withdrew $28,000 cash and Kelley withdrew $21.000 cash. First year income was $82,000. Required: 1a. & 1b. Prepare journal entries to record the partners' initial capital investments and their subsequent cash withdrawals. 1c. Determine the partners' shares of income, and then prepare journal entries to close Income Summary and the partners' withdrawals accounts. 2. Determine the balances of the partners' capital accounts as of December 31. Complete this question by…
The partnership of Miner Company began operations on January 1, with contributions as follows: Waverley $35,000 Marquez 40,000 The following additional partner transactions took place during the year: In early January, Houston is admitted to the partnership by contributing $25,000 cash for a 25% interest. Net income of $160,000 was earned. In addition, Waverley received a salary allowance of $30,000 for the year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting Houston. The partners' withdrawals are equal to half of their respective distributions of income after salary (i.e., half their respective portions of the $130,000). Required: Prepare a statement of partnership equity for the year ended December 31. If an amount box does not require an entry, leave it blank.
Diala and Tamer, partners in DT Company, have capital balances on January 1, 2016 of $72,000 and $48,000 respectively. The net income for the year is $86,000. The partnership income-sharing agreement indicates: 1. Annual Salaries of $24,000 for Diala and $16,000 for Tamer. 2. Interest of 10% on beginning capital balances for all partners. 3. Remaining income or loss to be shared in accordance with the ratio of the partners' original capital investments. Diala ratio= 72,000/(72,000+48,000)=0.6=60% Tamer=48,000/(72,000+48,000)=0.4=40% Instructions: (a) Prepare a schedule showing the distribution of net income for the partnership. (b)Prepare the journal entry to record the division of net income.
Curtis and Sillett are in partnership, sharing profits in the ratio 3:2 and compiling their accounts to 30 June each year. On 1 January 2015, Mcallister joined the partnership, and from that the date the profit sharing ratio became Curtis 50%, Sillett 25% and Mcallister 25%, after providing for salaries for Sillet and Mcallister of $20,000 and $12,000 pa respectively. The partnership profit for the year ended 30 June 2015 was $480,000, accruing evenly over the year. What are the artners' total profit shares for the year ended June 2015? А. Curtis-256,000 , Sillet - 162,000 , Mcallister - 62,000 В. Curtis -264,000 , Sillet - 156,000 , Mcallister -60,000 С. Curtis - 264,000 , Sillet - 166,000 , Mcallister - 66,000 D. Curtis - 248,000 , Sillet - 168,000 , Mcallister - 64,000
Kind and Lucky formed a partnership by contributing cash amounting to P240,000 and P480,000 respectively on January 1, 2021. They agreed to share profits and losses in the ratio of 3:2. During the first year of operation, both Kind and Lucky made a withdrawal of P50,000 and P80,000 respectively. They also reported a net profit of P175,000. At the start of the following year, they agreed to admit Mature into the partnership by purchasing one-fourth interest from the partners for P300,000. How much is the capital balance of Kind after admission?
The net income of the Mohammad and Ahmed partnership is 250,000. The partnership agreement specifies that profits and losses will be shared equally after salary allowances of 200,000 (Mohammad) and 300,000 (Ahmed) have been allocated. At the beginning of the year, Mohammad's Capital account had a balance of 500,000 and Ahmed's Capital account had a balance of 650,000. What is the balance of Mohammad's Capital account at the ?end of the year after profits and losses have been distributed 825,000.a O 375,000.b O 625,000 .cO 575,000.d O
The partnership agreement of Alix, Gise, and Bosco provides for the following income ratio: (a) Alix, the managing partner, receives a salary allowance of $108,000, (b) each partner receives 15% interest on average capital investment, and (c) remaining net income or loss is divided equally. The average capital investments for the year were: Alix $600,000, Gise $1,200,000, and Bosco $1,800,000. If partnership net income is $540,000, the amount allocated to Alix should be a. $90,000. Ch10,11,12 Principles of Accounting I b. $162,000. c. $180,000. d. $198,000.
Determine net income and record the share in the profit
Kind and Lucky formed a partnership by contributing cash amounting to P240,000 and P480,000 respectively on January 1, 2021. They agreed to share profits and losses in the ratio of 3:2. During the first year of operation, both Kind and Lucky made a withdrawal of P50,000 and P80,000 respectively. They also reported a net profit of P175,000. At the start of the following year, they agreed to admit Mature into the partnership by investing P300,000 for a one-fourth interest. How much is the total amount of asset revaluation?