rs 15,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
What is the answer in nunbers 15, 16, and 17?
Transcribed Image Text:15
PASO.O00 , 200.00 and 2501000, respectively. their arkeles of co -partnership
Carachico, Peros and Burgos pormed a
partnership on san.1,2019, and contriluted
provided that the operating profit be shared among the partners as follows: as
salary, P24,000 for Garachico, P18,000 for Perez, and P12,000 for Burgos; interest of
12% on the average capital during 2019 of the three partners; and the balance in
the ratio of 2:4:4, respectively.
The operating profit for the year ended Dec, 31, 2019 amounted to P176,000.
Garachico contributed additional capital of P30,000 on July 1 and made a
withdrawal of P10,000 on Oct. 1; Perez contributed additional capital of P20,000 on
Aug. 1 and made a withdrawal of P10.000 on Oct. 1; and, Burgos made a withdrawal
of P30,000 on Nov. 1.
The partners' capital balances on Dec. 31, 2019 are
Garachico, P179,680; Perez, P229,360; and, Burgos, P239,360.
Garachico, P223,180; Perez, P272,060; and, Burgos, P280,760.
Garachico, P189,680; Perez, P239,360; and, Burgos, P269,360.
Garachico, P179,760; Perez, P229,520; and, Burgos, P239,520.
а.
b.
С.
d.
16. Castillo, Labasan and Hollanes are partners with average capital balances during
2019 of P472,500, P238,650, and P162,350, respectively. The partners receive 10%
interest on their average capital balances; after deducting salaries of P122,325 to
Castillo and P82,625 to Hollanes, the residual profits or loss is divided equally.
In 2019, the partnership had a loss of P125,624 before the interest and salaries to
partners. By what amount should Castillo's and Hollanes' capital account change –
increase (decrease)?
Castillo
Hollanes
Castillo
Hollanes
P(40,844)
Р 28,358
Р31,235
P(40,448)
Р 17,536
а.
Р30,267
С.
b.
P29,476
d.
P32,458
The partnership agreement of Carlos, Niza and Usop provided for the following
terms on distribution of profits and losses:
Carlos is to receive 10% of the profit up to P1,000,000 and 20% on the amount
*
of excess;
Niza and Usop each, are to receive 5% of the remaining profit in excess of
P1,500,000 after Carlos' share as per above;
The balance to be divided equally.
For the year just ended, the partnership realized a profit of P2,500,000 before
distribution to partners. The share of Carlos is
a, P1,080,000.
b. P1,000,000.
с. Р1,300,000.
d. P1,100,000.
а.
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