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PROBLEM 3: EXERCISES 1. Partners A and B share in profits and losses equally after salaries of P100,000 for A and P60,000 for B. The business earned profit of P200,000 before deduction for the salaries. Requirements: a. Compute for the partners' respective shares in the profit. b. Provide the journal entries (the salaries are withdrawn periodically).

PROBLEM 3: EXERCISES 1. Partners A and B share in profits and losses equally after salaries of P100,000 for A and P60,000 for B. The business earned profit of P200,000 before deduction for the salaries. Requirements: a. Compute for the partners' respective shares in the profit. b. Provide the journal entries (the salaries are withdrawn periodically).

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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Direction: Answer the following questions in problem 3: [1,2,3,4,]

 

P2 PROBLEM 3: EXERCISES 1. Partners A and B share in profits and losses equally after salaries of P100,000 for A and P60,000 for B. The business earned profit of P200,000 before deduction for the salaries. Requir the pr 5. A Requirements: a. Compute for the partners' respective shares in the profit. b. Provide the journal entries (the salaries are withdrawn periodically). in a 2. A and B's partnership agreement provides for annual salary allowances of P160,000 for A and P80,000 for B. Profits are shared equally, while losses on a 60:40 ratio. The partnership earned profit of P200,000. April June Septe Dece
Transcribed Image Text:P2 PROBLEM 3: EXERCISES 1. Partners A and B share in profits and losses equally after salaries of P100,000 for A and P60,000 for B. The business earned profit of P200,000 before deduction for the salaries. Requir the pr 5. A Requirements: a. Compute for the partners' respective shares in the profit. b. Provide the journal entries (the salaries are withdrawn periodically). in a 2. A and B's partnership agreement provides for annual salary allowances of P160,000 for A and P80,000 for B. Profits are shared equally, while losses on a 60:40 ratio. The partnership earned profit of P200,000. April June Septe Dece
Requirement: Compute for the respective shares of the partners in r 2 Partnership Operations 47 the profit. ed, A and B's partnership agreement states the following: Annual salaries of P96,000 for A and P60,000 for B. 10% bonus to A, based on profit after salaries and bonus. P/L ratio of 60:40. ala ng The partnership earned profit of P200,000 before salaries and bonus. Requirement: Compute for the respective shares of the partners in the profit. of 4. A and B's partnership agreement provides for an annual salary allowance of P100,000 for A and 10% interest on the weighted average capital balance of B. The remainder is shared on a 60:40 ratio, respectively. During the period, the partnership earned profit of P200,000. B's capital account had a beginning balance of P120,000. B made additional investments of P40,000 on April 1, P80,000 on Sept. 30, and P20,000 on Dec. 31, and made drawings of P60,000 on July 31. ner fter Requirement: Compute for the respective shares of the partners in the profit. ess 5. A&B Co. started operations on April 1, 20x1. Mr. A, a partner in A&B Co., is entitled to 12% interest on the weighted average balance of his capital account. Mr. A's ledger shows the following: wn A, Capital Debit Ref. 001 Credit Balance Date April 1,20x1 June 30, 20x1 September 30, 20x1 December 1, 20x1 100,000.00 79,000.00 87,000.00 83,000.00 100,000.00 lary 098 21,000.00 are 8,000.00 146 ship 211 4,000.00
Transcribed Image Text:Requirement: Compute for the respective shares of the partners in r 2 Partnership Operations 47 the profit. ed, A and B's partnership agreement states the following: Annual salaries of P96,000 for A and P60,000 for B. 10% bonus to A, based on profit after salaries and bonus. P/L ratio of 60:40. ala ng The partnership earned profit of P200,000 before salaries and bonus. Requirement: Compute for the respective shares of the partners in the profit. of 4. A and B's partnership agreement provides for an annual salary allowance of P100,000 for A and 10% interest on the weighted average capital balance of B. The remainder is shared on a 60:40 ratio, respectively. During the period, the partnership earned profit of P200,000. B's capital account had a beginning balance of P120,000. B made additional investments of P40,000 on April 1, P80,000 on Sept. 30, and P20,000 on Dec. 31, and made drawings of P60,000 on July 31. ner fter Requirement: Compute for the respective shares of the partners in the profit. ess 5. A&B Co. started operations on April 1, 20x1. Mr. A, a partner in A&B Co., is entitled to 12% interest on the weighted average balance of his capital account. Mr. A's ledger shows the following: wn A, Capital Debit Ref. 001 Credit Balance Date April 1,20x1 June 30, 20x1 September 30, 20x1 December 1, 20x1 100,000.00 79,000.00 87,000.00 83,000.00 100,000.00 lary 098 21,000.00 are 8,000.00 146 ship 211 4,000.00
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