Net income for CD partnership for 2021 was P125,000. C and D have agreed to distribute partnership net income according to the following plan: D Interest on average capital balances 7% 78 Bonus on net income before the bonus, but after interest on average capital balances 12층 Salaries P40,000 P50,000 Residual (if positive) Residual (if negative) 60% 40% 50% 50% Additional Information for 2021 follows: C began the year with a capital balance of P75,000 D began the year with a capital balance of P100,000 On March 1, C invested an additional P25,000 into the partnership On October 1, D invested an additional P20,000 into the partnership Throughout 2021, each partner withdrew P200 per week in anticipation of partnership net income. The partners agreed that these withdrawals are not to be included in the computation of average capital balances for purposes of income distributions Compute for the ending capital balances of the partners. UI

Net income for CD partnership for 2021 was P125,000. C and D have agreed to distribute partnership net income according to the following plan: D Interest on average capital balances 7% 78 Bonus on net income before the bonus, but after interest on average capital balances 12층 Salaries P40,000 P50,000 Residual (if positive) Residual (if negative) 60% 40% 50% 50% Additional Information for 2021 follows: C began the year with a capital balance of P75,000 D began the year with a capital balance of P100,000 On March 1, C invested an additional P25,000 into the partnership On October 1, D invested an additional P20,000 into the partnership Throughout 2021, each partner withdrew P200 per week in anticipation of partnership net income. The partners agreed that these withdrawals are not to be included in the computation of average capital balances for purposes of income distributions Compute for the ending capital balances of the partners. UI

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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Assuming the partnership incurred a loss of P400,000 in 2020. Since they are both active in partnership's affair, each one will receive a P50,000 salaryallowance per year Tasks: determine the new partners' capital after the distribution of profit and loss.
A and B formed a Partnership on January 1, 2020. A contributed capital of P50,000, while B contributed capital of P30,000. The Partnership agreement provides for the following: o Capital accounts are to be credited annually with interest at 5% of the beginning capital. o Partner B is to be paid salary of P2,000 a month. o Partner B is to receive a bonus of 10% based on the net income. The Partnership's income statement for the year ended is as follows: Revenues P101,000 30,000 71,000 Expenses (including salary, interest, and bonus) Net income Determine the amount of bonus.
7. The partnership agreement of Hi and Rap provides that interest at 14% per year is to be credited to each partner on the basis of weighted average capital balances. A summaryof Rap capital account for the year ended December 31, 2015, is as follows:Balance, January 1 P210,000Additional investment, July 1 60,000Withdrawal, August 1 (22,500)Balance, December 31 P247,500What amount of interest should be credited to Rap’s capital account for 2015?
The partnership contract of the Ange, Bill, and Cayne Partnership provided for the division of net income or losses in the following manner: Bonus of 20% of income after bonus to Ange Interest at 10% on average capital account balances to each partner. Remaining income or loss, equally to each partner. Net income of the Partnership for 2021 was at P200,000 and the average capital account balances for that year were Ange, P200,000; Bill, P400,000; and Cayne, P600,000. How much of the P200,000 partnership profit for 2021 should be distributed to Ange? Group of answer choices 68,889 80,000 73,333 90,000
The statement of financial position May Partnership on December 31, 2020 is given below: Cash P45,000 Accounts payable P70,000 Receivable 25,000 Loan payable to Mateo 30,000 Inventories 180,000 Mateo, capital 75,000 Plant and equipment 120,000 Vicente, capital 75,000 Ibe, capital 120,000 Total P370,000 Total P370,000 A new partner, Francisco, was admitted on January 1, 2021, who purchased Mareo’s capital by giving his car costing P250,000 but with a book value of P125,000 and a market value of P100,000, How much was Francisco, capital credited? Answer without peso signs but with commas.
The partnership agreement of Zuniga, Armenta & Galang provided for the year end allocation ofprofit in the following order:*First, Zubiga is to receive 10% of profit up to 200,000 and 20% over 200,000*Second, Armenta and Galang each are to receive 5% of the remaining profit over 300,000*The balance of profit is to be allocated equally among the three partnersThe partnership’s 2021 profit was 500,000 before any allocations to partners. What amount should beallocated to Zuniga? A. 202,000B. 216,000C. 206,000D. 220,000
A and B agreed that they will receive annual salaries of P60,000 each. Bonus shall be given to A of 20% of the net income after partners' salaries, the bonus being treated as an expense. Balance will be divided equally. The partnership reported a net income of P360,000 after partners' salaries but before bonus. How much is the share of B in the profit?
Additional information1. The net profit according to the Profit and Loss account amounted to R500 000 on 28February 2021.2. The partnership agreement made provision for the following:1. Interest on capital must be provided at 15% per annum on the balances in the capitalAccounts from 1 March 2020 to 31 August 2020. With effect from 1 September 2019 the interest rate on capital increases to 18% per annum.2. The partners are entitled to the following monthly salaries: Bobby R11 000Vincent R10 0003. Bobby is entitled to a bonus of 15% of the net profit before any appropriations are made.4. Bobby and Vincent share the remaining profits or losses in the ratio 3:2 respectively.
Part II: Problems 1. On January 1, 2021, Kaye, Erika and April formed a partnership with original capital contribution ratio or 4:5:1 for total agreed capitalization of P5,000,000. The profit or loss ratio agreement provides that profits shall be distributed in the ratio of 3:2:5 while losses shall be distributed in the ratio of 6:1:3. During 2021, the partnership reported net income of P2,000,000 with Kaye and Erika withdrawing P500,000 and P300,000, respectively. During 2022, the partnership reported net loss of P1,000,000 with Erika and April withdrawing P200,000 and P400,000 respectively. What is the adjusted capital balances of each partner on December 31, 2022?
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The partnership contract of Ali & Yousif LLP provided for salaries of $45,000 to Ali and $35,000 to Yousif, with any remaining income or loss divided equally. During 2005, pre-salaries income of Ali & Yousif LLP was $100,000. During 2020, Ali's share of net income is: O a. 55000 O b. 37000 O c. 35000 O d. 45000
The terms of a partnership agreement provide that one of the partners is to receive a salary allowance of P30,000, plus a bonus of 20 percent of income after deduction of the bonus and the salary allowance. If income is P150,000, the bonus should be: *