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s. The Soliman and Palaganas Partnership agreement provides for Soliman to 20% bonus on profits before the bonus. Remaining profits and losses are divided between Soliman and Palaganas in the ratio of 2:3, respectively. Which partner has a greater advantage when partnership has a profit or when it has a loss? Profit Loss а. Soliman Palaganas b. Soliman Soliman Palaganas Palaganas C. Soliman d. Palaganas

s. The Soliman and Palaganas Partnership agreement provides for Soliman to 20% bonus on profits before the bonus. Remaining profits and losses are divided between Soliman and Palaganas in the ratio of 2:3, respectively. Which partner has a greater advantage when partnership has a profit or when it has a loss? Profit Loss а. Soliman Palaganas b. Soliman Soliman Palaganas Palaganas C. Soliman d. Palaganas

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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What is the answer in nunbers 8, 9, 10 and 11? 

8. The Soliman and Palaganas Partnership agreement provides for Soliman to receive a 20% bonus on profits before the bonus. Remaining profits and losses are divided between Soliman and Palaganas in the ratio of 2:3, respectively. Which partner has a greater advantage when partnership has a profit or when it has a loss? Profit Loss а. Soliman Palaganas b. Soliman Soliman Palaganas Palaganas с. Soliman d. Palaganas 9. At the beginning of 2019, the statement of financial position for EasyPage Company, showed the following balances in the partners' capital accounts: Rivera, P24,000 and Rosario, P26,000. Rivera and Rosario share profits and losses in a 3:7 ratio. During 2019, EasyPage experienced a P40,000 loss. Rivera withdrew P10,000 from the partnership during the year and Rosario withdrew P18,000. What will be the balance in Rivera's capital on Dec. 31, 2019? а. Р 3,600 b. Р 2,000 с. Р12,000 d. P26,000 10. On Jan. 1, 2019, Demafiles and Barbosa decided to form a partnership. At the end of the year, the partnership made a profit of P120,000. The capital accounts of the partnership showed the following transactions: Demafiles, Capital Barbosa, Capital Dr. Cr. Dr. Cr. Jan. 1 P40,000 P25,000 Apг. 1 P5,000 June 1 10,000 10,000 Aug. 1 Sept. 1 Oct. 1 P3,000 1,000 5,000 Dec. 1 4,000 5,000 Assuming that an interest of 20% per annum is given on average capital and the balance of the profits is allocated equally, the allocation of profits should be Demafiles, P60,000; Barbosa, P59,400. Demafiles, P61,200; Barbosa, P58,800. а. С. Demafiles, P67,200; Barbosa, P52,800. b. d. Demafiles, P68,800; Barbosa, P51,200. 11. Barbo is a partner and has an annual salary of P24,000 but actually draws P3,000 per month. The other partner has an annual salary of P35,000 and draws P2,000 per month. What is the total annual salary that should be used to allocate profit. between the partners? а. Р119,000 b. P 71,000 c. P 60,000 d.P 59,000
Transcribed Image Text:8. The Soliman and Palaganas Partnership agreement provides for Soliman to receive a 20% bonus on profits before the bonus. Remaining profits and losses are divided between Soliman and Palaganas in the ratio of 2:3, respectively. Which partner has a greater advantage when partnership has a profit or when it has a loss? Profit Loss а. Soliman Palaganas b. Soliman Soliman Palaganas Palaganas с. Soliman d. Palaganas 9. At the beginning of 2019, the statement of financial position for EasyPage Company, showed the following balances in the partners' capital accounts: Rivera, P24,000 and Rosario, P26,000. Rivera and Rosario share profits and losses in a 3:7 ratio. During 2019, EasyPage experienced a P40,000 loss. Rivera withdrew P10,000 from the partnership during the year and Rosario withdrew P18,000. What will be the balance in Rivera's capital on Dec. 31, 2019? а. Р 3,600 b. Р 2,000 с. Р12,000 d. P26,000 10. On Jan. 1, 2019, Demafiles and Barbosa decided to form a partnership. At the end of the year, the partnership made a profit of P120,000. The capital accounts of the partnership showed the following transactions: Demafiles, Capital Barbosa, Capital Dr. Cr. Dr. Cr. Jan. 1 P40,000 P25,000 Apг. 1 P5,000 June 1 10,000 10,000 Aug. 1 Sept. 1 Oct. 1 P3,000 1,000 5,000 Dec. 1 4,000 5,000 Assuming that an interest of 20% per annum is given on average capital and the balance of the profits is allocated equally, the allocation of profits should be Demafiles, P60,000; Barbosa, P59,400. Demafiles, P61,200; Barbosa, P58,800. а. С. Demafiles, P67,200; Barbosa, P52,800. b. d. Demafiles, P68,800; Barbosa, P51,200. 11. Barbo is a partner and has an annual salary of P24,000 but actually draws P3,000 per month. The other partner has an annual salary of P35,000 and draws P2,000 per month. What is the total annual salary that should be used to allocate profit. between the partners? а. Р119,000 b. P 71,000 c. P 60,000 d.P 59,000
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