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Problem #17 Rules for the Distribution of Profits or Losses Alisuag, Go, and Palatino formed a partnership on Jan. 1, 2019 with capital contributions of P300,000, P500,000, and P200,000, respectively. For the year ended Dec. 31, 2019, the partnership reported profit of P450,000. Required: Determine the partners' share in the profit under each of the following independent situations and prepare the entry to record the profit allocation to individual capital accounts: 1. Profit is allocated on the basis of the initial capital contributions. 2. Each partner is allotted an interest of 7% on initial capital contributions and the remainder is divided among Alisuag, Go, and Palatino in the ratio 4:3:1, respectively. 3. Salaries of P50,000, P40,000, and P30,000 are given to Alisuag, Go, and Palatino, respectively; 5% interest on initial capital contributions, and any remainder is divided in the ratio 4:3:1, respectively.

Problem #17 Rules for the Distribution of Profits or Losses Alisuag, Go, and Palatino formed a partnership on Jan. 1, 2019 with capital contributions of P300,000, P500,000, and P200,000, respectively. For the year ended Dec. 31, 2019, the partnership reported profit of P450,000. Required: Determine the partners' share in the profit under each of the following independent situations and prepare the entry to record the profit allocation to individual capital accounts: 1. Profit is allocated on the basis of the initial capital contributions. 2. Each partner is allotted an interest of 7% on initial capital contributions and the remainder is divided among Alisuag, Go, and Palatino in the ratio 4:3:1, respectively. 3. Salaries of P50,000, P40,000, and P30,000 are given to Alisuag, Go, and Palatino, respectively; 5% interest on initial capital contributions, and any remainder is divided in the ratio 4:3:1, respectively.

FINANCIAL ACCOUNTING
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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Problem #17 Rules for the Distribution of Profits or Losses Alisuag, Go, and Palatino formed a partnership on Jan. 1, 2019 with capital contributions of P300,000, P500,000, and P200,000, respectively. For the year ended Dec. 31, 2019, the partnership reported profit of P450,000. Required: Determine the partners' share in the profit under each of the following independent situations and prepare the entry to record the profit allocation to individual capital accounts: 1. Profit is allocated on the basis of the initial capital contributions. 2. Each partner is allotted an interest of 7% on•initial capital contributions and the remainder is divided among Alisuag, Go, and Palatino in the ratio 4:3:1, respectively. 3. Salaries of P50,000, P40,000, and P30,000 are given to Alisuag, Go, and Palatino, respectively; 5% interest on initial capital contributions, and any remainder is divided in the ratio 4:3:1, respectively. 4. Salaries of P30,000, P45,000, and P65,000 are given to Alisuag, Go, and Palatino, respectively; 5% interest on initial capital contributions; bonus to Alisuag of 8% of profit after deducting bonus but before deducting salaries and interest; and any remainder divided equally.
Transcribed Image Text:Problem #17 Rules for the Distribution of Profits or Losses Alisuag, Go, and Palatino formed a partnership on Jan. 1, 2019 with capital contributions of P300,000, P500,000, and P200,000, respectively. For the year ended Dec. 31, 2019, the partnership reported profit of P450,000. Required: Determine the partners' share in the profit under each of the following independent situations and prepare the entry to record the profit allocation to individual capital accounts: 1. Profit is allocated on the basis of the initial capital contributions. 2. Each partner is allotted an interest of 7% on•initial capital contributions and the remainder is divided among Alisuag, Go, and Palatino in the ratio 4:3:1, respectively. 3. Salaries of P50,000, P40,000, and P30,000 are given to Alisuag, Go, and Palatino, respectively; 5% interest on initial capital contributions, and any remainder is divided in the ratio 4:3:1, respectively. 4. Salaries of P30,000, P45,000, and P65,000 are given to Alisuag, Go, and Palatino, respectively; 5% interest on initial capital contributions; bonus to Alisuag of 8% of profit after deducting bonus but before deducting salaries and interest; and any remainder divided equally.
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