8. The partnership contract for Malicdem and Nabua Partnership providedthat Malicdem is to receive an annual salary of P426,000, Nabua is toreceive an annual salary of P284,000, and the remaining profit or loss is tobe divided equally between the two partners. Net income of the Malicdemoupeand Nabua partnership for the year ended December 31, 2020 wasP639,000. The closing entry for the net income on December 31, 2020 is adebit to Income Summary for P639,000 and credits to Malicdem Capital andNabua Capital, respectively ofay!outinancDuning2,400a. P383,400 and P255,600b. P319,500 and P319,500C. P426,000 and P284,000d. P390,500 and P248,500capite

The partnership comes into existence when two or more persons agree to do the business and further…

Answered: The partnership contract for Malicdem…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

See similar textbooks

Similar questions

The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
The partnership contract for the SDF and MGB Partnership, a generat partnership, provided for annual salaries of P140,000 and P175,000 to SDF and MGB, respectively, with the resulting profit or loss to be divided equally. 1. Profit before salaries for the year ended June 30, 2018 was P315,000. Required: Give the entry to transfer income summary account balance to drawing accounts of the partners.
The partnership contract for the SDF and MGB Partnership, a general partnership, provided for annual salaries of P140,000 and P175,000 to SDF and MGB, respectively, with the resulting profit or loss to be divided equally. • Profit before salaries for the year ended June 30, 2021 was P315,000. Required: Give the journal entry to transfer income summary account balance to drawing accounts of the partners.
What is the correct answer to the question?
On April 1, 2020, Lana, Brent and Marie formed LBM Partnership with original contributions ofP400,000, P100,000 and P500,000, respectively. The articles of co-partnership provides that profit orloss shall be distributed under the following terms:• Lana, Brent and Marie shall be entitiled to monthly salaries of P1,000, P2,000 and P3,000 eachrespectively.• 10% return on the original capital contribution.• As managing partner, Brent shall receive bonus equal to 20% of net income after salaries andinterest but before bonus.• The remainder shall be distributed on the basis of original capital ratio.During the year, the partners regularly withdraw 1⁄4 of their monthly salary. The December 31, 2020statement of financial position of LBM Partnership shows that the capital balance of Lana is P531,080.What is the share of Brent in the partnership net income?A. 108,038.75 C. 105,820B. 106,070 D. 103,195
The partnership agreement of Axel, Berg & Cobb provides for the year-end allocation of net income in the following order: • First, Axel is to receive 10% of net income up to P100,000 and 20% over P100,000. . Second, Berg and Cobb each are to receive 5% of the remaining income over P150,000. • The balance of income is to be allocated equally among the three partners. The partnership's 2020 net income was P250,000 before any allocations to partners. What amount should be allocated to Axel?
The partnership contract of Ali & Yousif LLP provided for salaries of $45,000 to Ali and $35,000 to Yousif, with any remaining income or loss divided equally. During 2005, pre-salaries income of Ali & Yousif LLP was $100,000. During 2020, Ali's share of net income is: O a. 55000 O b. 37000 O c. 35000 O d. 45000
The partnership agreement of A, B and C provides for the year-end allocation of net income in the following order: First, A is to receive 10% of net income up to P100,000 and 15% over P100,000 Second, B and C each are to receive 10% of the remaining income over P150,000. The balance of income is to be allocated equally among the three partners. The partnership’s 2021 net income was P280,000 before any allocations to partners. What amount should be allocated to A? Group of answer choices 111,800 93,333 103,000 84,100
On January 1, 2020, Balagtas, Cabanacan and Dagohoy formed a partnership with the following contributions: Balagtas P406,000 435,000 246,500 Cabanacan Dagohoy The partnership agreement of Balagtas, Cabanacan and Dagohoy provides for the division of net income as follows: a. Cabanacan, who manages the partnership is to receive a salary of P23,925 monthly. b. Each partner is to be allowed interest at 15% on beginning capital. C. Balance is to be divided 25:30:45 On December 31, 2020, after the following partners' additional investments and capitál withdrawals, the partnership has a total capital of P1,413,750 Additional Investments Withdrawals P139,200 Balagtas 87,000 P130,500 104,400 Cabanacan Dagohoy What are the capital balances of the partners on December 31, 2020? Balagtas P598,487.50 P703,134.00 P112,128.50 b. Cabanacan Dagohoy a. P53,287.50 P311,634.00 P(29,971.50) P459,287.50 P746,634.00 P216,528.50 d. P577,281.25 P709,267.50 P127,201.25 С. ------.
On March 1, 2020, JM and KK formed a partnership with each contributing the following assets (see attached image) 1. The building is subject to mortgage loan of P800,000, which is to be assumed by the partnership agreement provides that JM and KK share profits and losses 30% and 70%, respectively. On March 1, 2020 the balance in KK's capital account should be: A. 3,700,000 C. 2,900,000B. 3,045,000 D. 2,485,000 2. Assume that the mortgage loan is not assumed by the partnership and the partners agree to withdraw or contribute additional cash to make their capital balances agree with their profit and loss ratio. On March 1, how much cash should be invested/(withdrawn) by KK? A. (1,215,000) C. (655,000)B. (415,000) D. 655,000
4. The partnership agreement of Ta, Li and No provides for the year-end allocation of net income in the following order: First, Ta is to receive 10% of net income up to P100,000and 20% over P100,000, Second, Li and No are to receive 5% each of the remainingincome over P150,000. The balance of income is to be allocated equally among thethree partners. The partnership’s net income was P250,000 before any allocation topartners. What amount should be allocated to Ta?
1. (a) The partnership of Fatimah and Anisa commenced on 1 January 2020 and accounts are prepared to 31 December annually. Their partnership recorded a profit before appropriation of RM60,000. The partnership agreement provided for the following: Interest on capital and drawings 3% per annum for each partner Fatimah's drawings RM4,200 Anisa's drawings RM1,400 Fatimah's capital contribution RM14,000 Anisa's capital contribution RM7,000 Salary: Fatimah Share on divisible income / (loss): Fatimah Anisa RM28,000 2/3 1/3 Required: Prepare a profit and loss appropriation account. (b) How does the tax treatment apply to the partnership?

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS