The DEF partnership reportednet income of P130,000 forthe year ended December 31,2020. According to thepartnership agreement,partnership profits and lossesare to be distributed asfollows: SALARIES - (D)25,000; (E) 20,000; (F)15,000; BONUS will be given topartner D at 10% of the netincome. The remainder will beshared by D, E and F in theratio of 60:30:10 respectively.How much should be allocatedto D, E, and F as share on thenet income for the year? Labelyour answer accordingly. * S and R are partners inbusiness. For 2021, net incomewas P50,00O. S and R havesalaries of P90,000 andP60,000 respectively andremaining profits and lossesare shared 4:6. If theiragreement specifies thatsalaries are allowed only to theextent of net income, basedon a pro-rata share of theirsalary allowances, how muchwill be allocated to S and R asshare in the net incomerespectively? Label youranswers accordingly. *

Since net income is P50000, hence as per agreement the maximum salary allowance to the partners is…

S and R are partners in business. For 2021, net income was P50,000. S and R have salaries of P90,000 and P60,000 respectively and remaining profits and losses are shared 4:6. If their agreement specifies that salaries are allowed only to the extent of net income, based on a pro-rata share of their salary allowances, how much will be allocated to S and R as share in the net income respectively? Label your answers accordingly. *

S and R are partners in business. For 2021, net income was P50,000. S and R have salaries of P90,000 and P60,000 respectively and remaining profits and losses are shared 4:6. If their agreement specifies that salaries are allowed only to the extent of net income, based on a pro-rata share of their salary allowances, how much will be allocated to S and R as share in the net income respectively? Label your answers accordingly. *

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

87
Incredible and Joyful are partners who share profit on a 60:40 ratio. At the end of 2021, the partnership books showed a net income of P150,000. It was disclosed however that the following errors and omissions were noted (see image below). How much is the corrected net income in 2021?
W owes Y, the managing partner of XYZ Partnership, P50,000 due on Oct. 1, 2021. W also owes XYZ partnership P100,000 due on Oct 31, 2021. If W pays the managing partner P50,000. How will the payment be applied? Explain.
Alex and Brix are partners. A salary of P 50,000 is given to Alex and balance shall be divided equally. Assuming that profit is P 20,000, how much will Alex receive as share in the profit?
X, Y, and Z are partners sharing profits and losses in the ratio of 5:3:2. During the year, their investments and withdrawals are as follows: Investment of X, Y, and Z for P200,000, P175,000 and P375,000 respectively. Withdrawals of X, Y, and Z amounting to P125,000, P62500 and P62,500 respectively. On December 31, 2021, the partners decided to liquidate their business. After exhausting partnership assets, liabilities of P125,000 remain unpaid. X is personally insolvent. The gain or loss on realization is:
Partners Coleen and Norlyn received a salary of 150000 and 300000 and will share profit and loss in a 2:1 ratio respectively. If the partnership suffered a 150,000 loss in 2020, determine how the loss will be distributed to Coleen and Norlyn.Coleen's share on profit or loss?Norlyn's share on profit or loss?How much is the total amount to be distributed using the 2:1 ration?
How much was the share of A?
X, Y and Z are partners sharing profits in the ratio 3:21, respectively Capital accounts are P 500,000, P300,000 and P 200,000 for X, Y and Z, respectively on December 31, 2021, when Z decided to withdraw. It is agreed to pay P 300,000 for Z's interest. Profits after the retirement of Z are to shared equally Assuming the use of bonus method, how much is the capital balance of X after the retirement of 2