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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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
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.
A B and C are in partnership sharing profits and losses in the ratio of 3:2:1. On 1st Jan 2019, their capital balances are: A 30,000 B 20,000 C 10,000 The terms of partnership provides that All partners are eligible for interest on capital @6% All partners are liable to pay interest on drawings @ 4% All Partners are eligible for salary @ RO 200 per month The net profit for the year ended 31st Dec 2019 before making the above terms was 18,000. The drawings of the partners were: A 3,000 B 2,000 C 1,000 You are requested to prepare Profit and Loss Appropriations Account Capital accounts of three partners under fluctuating capital method
AB Partnership’s operation for the year 2022 resulted in a profit of P180,000. Their profit sharing agreement provided the following:a. Salaries of P15,000 and P25,000 is to be given to A and B respectively;b. 15% of profit after salaries but before bonus is to be given to Partner B;c. The balance is to be divided using the 3:2 ratio, respectively.How much profit is to be allocated to B?
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: *
Item Nos. 11 and 12 are based on the following information: The partnership contract of partners L and M provides that L, the managing partner is allowed a bonus of 20% of the profit after taxes. The partnership is subject to an income tax rate of 35% of the profit. During 200C, the partnership earned profit before taxes of P 113,000. 11. If the bonus is based on the profit after taxes but before bonus, how much is the bonus of L? а. Р 13,000. P 14,500. С. b. P 13,250. d. P 14,690.
On January 1, 2022, A and B decided to form a partnership by contributing their respective assets and equities subject to adjustments. Cash Accounts Receivable Building A 50,000 20,000 520,000 B 40,000 10,000 30,000 Computer Equipment An Allowance for Doubtful Accounts of 3% of accounts receivable is set up for each partner, and a mortgage of P30,000 is assumed from building contribution. Compute the adjusted capital account of A after the formation.
Net income for AB partnership for 2021 was $125,000. A and B have agreed to distribute partnership net income according to the following plan as shown in the image. Additional Information for 2021 follows:  A began the year with a capital balance of $75,000  B began the year with a capital balance of $100,000  On March 1, A invested an additional $25,000 into the partnership  On October 1, B invested an additional $20,000 into the partnership  Throughout 2021, each partner withdrew $200 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. A. Allocate the income to partners A and B B. Compute for the ending capital balances of the partners.
Assuming the partnership earned P200,000 profit in 2020. Since they are both active in partnership's affair, each one will receive a 50,000 salaryallowance per year determine the new partners' capital after the distribution of profit and loss.
The accounts of the partnership of A, B and C at the end of its fiscal year on October 31, 2018 are as follows: P 78,750 Liabilities Loan from C Cash P262,500 Other Non-Cash Assets 682,500 26,250 52,500 Loan to B A, Capital (30%) B, Capital (50%) C, Capital (20%) 236,250 157,500 78,750 If P90,000 is available for distribution to partners after all non-partner liabilities are paid, how much should A receive? _8. D.