Malaluan and Baral are in partnership. They share profits in the ratio 3:2 and close 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 Castro 25%, 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 the year ended June 30, 2016? Malaluan Baral Castro P256,000 P248,000 P264,000 P264,000 a. P162,000 P62,000 b. P168,000 P64,000 C. P166,000 P66,000 d. P156,000 P60,000

Malaluan and Baral are in partnership. They share profits in the ratio 3:2 and close 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 Castro 25%, 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 the year ended June 30, 2016? Malaluan Baral Castro P256,000 P248,000 P264,000 P264,000 a. P162,000 P62,000 b. P168,000 P64,000 C. P166,000 P66,000 d. P156,000 P60,000

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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Concept explainers

Partnership Accounting

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.

Partner Admission and Withdrawal

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.

Question

Malaluan and Baral are in partnership. They share profits in the ratio 3:2 and close
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 Castro
25%, 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 the
year ended June 30, 2016?
Malaluan
Baral
Castro
a.
P256,000
P162,000
P62,000
P248,000
P264,000
d.
b.
P168,000
P64,000
C.
P166,000
P66,000
P264,000
P156,000
P60,000

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