or each of the following independent profit and loss agreement, prepare the profit distribution schedule: Salaries are P150,000 to Labasan, P200,000 to Gabayan, and P180,000 to Villanueva. Labasan receives a bonus of 5% profit after bonus. Interest is 10% of ending capital balances. Labasan, Gabayan, and Villanueva divide any remainder in a 3:3:4 ratio. Profit was P789,600. Interest is 10% of average capital balances. Salaries are P240,000 to Labasan, P210,000 to Gabayan, and P250,000 to Villanueva. Gabayan receives a bonus of 10% of profit after bonus and salary. Any remainder is divided equally. Profit was P680,800 Villanueva receives a bonus of 20% of profit after bonus and salaries. Salaries are P210,000 to Labasan, P180,000 to Gabayan, and P150,000 to Villanueva. Interest is 10% of beginning capital balances. Labasan, Gabayan, and Villanueva divide any remainder in an 8:7:5 ratio. Profit was P929,400

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Distribution of Profits or Losses Based on Partner’s Agreement

Labasan, Gabayan, and Villanueva are manufacturer’s representatives in the architecture business. Their capital accounts were as follows:

      Labasan, Capital                                                 Gabayan, Capital                                       Villanueva,Capital

9/1 80,000    1/1 300,000                                3/1 90,000   1/1 400,000            8/1 120,000  1/1 500,000

                         5/1   60,000                                                        7/1   50,000                                       4/1   70,000

                                                                                                        9/1   40,000                                       6/1   30,000

Required:

For each of the following independent profit and loss agreement, prepare the profit distribution schedule:

  1. Salaries are P150,000 to Labasan, P200,000 to Gabayan, and P180,000 to Villanueva. Labasan receives a bonus of 5% profit after bonus. Interest is 10% of ending capital balances. Labasan, Gabayan, and Villanueva divide any remainder in a 3:3:4 ratio. Profit was P789,600.
  2. Interest is 10% of average capital balances. Salaries are P240,000 to Labasan, P210,000 to Gabayan, and P250,000 to Villanueva. Gabayan receives a bonus of 10% of profit after bonus and salary. Any remainder is divided equally. Profit was P680,800
  3. Villanueva receives a bonus of 20% of profit after bonus and salaries. Salaries are P210,000 to Labasan, P180,000 to Gabayan, and P150,000 to Villanueva. Interest is 10% of beginning capital balances. Labasan, Gabayan, and Villanueva divide any remainder in an 8:7:5 ratio. Profit was P929,400
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