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: 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: 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.
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
Transcribed Image Text:situations and prepare the entry to record the profit allocation to individual capital
Determine the partners' share in the profit under each of the following independent
the partnership reported profit of P450,000.
of P300,000, P500,000, and P200,000, respectively. For the year ended Dec. 31, 2019,
Alisuag, Go, and Palatino formed a partnership on Jan. 1, 2019 with capital contributions
Rules for the Distribution of Profits or Losses
Problem #17
Required:
accounts:
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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