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- 16. Partners A, B and C had the following balances prior to admission of D: A, Loan (debit): P 20, 000; B, Loan (credit): P 60, 000; A, Capital (debit): P 30, 000; B, Capital (credit): P 120, 000; C, Capital (credit): P 70, 000. Partners A, B and C share profits and losses in the ratio 5:2:3 respectively. D is admitted in the partnership for a 20% interest in the partnership in exchange for an investment of P 40, 000 cash. Prior to admission of D, the partners agreed to increase the carrying value of inventories by P 60, 000 in order to bring it to its fair value. Immediately after the admission, the capital credit of D would be: a. P 46, 000 b. P 52, 000 c. P40, 000 d. P60, 000 e. answer not givenPartners A, B and C had the following balances prior to admission of D: A, Loan (debit): P 20, 000; B, Loan (credit): P 60, 000; A, Capital (debit): P 30, 000; B, Capital (credit): P 120, 000; C, Capital (credit): P 70, 000. Partners A, B and C share profits and losses in the ratio 5:2:3 respectively. D is admitted in the partnership for a 20% interest in the partnership in exchange for an investment of P 40, 000 cash. Prior to admission of D, the partners agreed to increase the carrying value of inventories by P 60, 000 in order to bring it to its fair value. Immediately after the admission, the capital credit of D would be:Problem #5 SCORE: PROFESSOR: Distribution of Profits or Losses Based on Partners' Agreement Abad, Aglugub, and Onate agreed to share profits and losses according to the ratio of their respective investments at the beginning of the year of P300,000, P250,000, and P450,000. Calculate the share of each partner under the following conditions: (a) P270,000 profit; (b) P240,000 loss.
- A, B and C, partners to a firm, have capital balances of P51,000, P26,000, and P12,000, respectively, and shareprofits in the ratio of 4:2:1. If the partnership will be liquidated, who among the partners shall be paid first?a. Ab. Bc. Cd. Cannot be determined4. X, Y, and Z have capital balances of P40,000.00, P50,000.00, and P18,000.00 and a profit – sharing ratio 4:2:1, respectively. If X received P8,000.00 upon liquidation of the partnership, the total amount received by partner Z was: a. P10,000.00 b. P 8,000.00 c. P34,000.00 d. P -0- 5. Assume the same facts in No. 4, above, except that X received P26,000.00 as a result of the liquidation. The total gain/loss on realization amounted to: a. P 3,500.00 b. P14,000.00 c. P 7,000.00 d. P24,500.00REQUIRED: Show how the net profit will be divided. 3.9 Bah, Lee and Wag have capital balances of P 15,000, P 10,000, and P 20,000, respectively. The partners agreed to the following distribution of profits: a. 10% interest on the capital balances b. Lee is entitled to a salary of P 6,000 c. Wag is guaranteed a minimum share of P 12,000. d. Remainder is to be divided 3:3:4 for Bah, Lee and Wag, respectively. REQUIRED: What is the minimum profit to be earned by the partnership to give Lee an aggregate share of P 10,000?
- A, B and C share profits and losses in the ratio of 3:2:1. C is to receive a salary of K30, 000 as managing partner, and interest at the rate of 15% p. a is to be charged on drawings. Further, Interest to be earned by partners on their capital contributed. The following are the results of the profits and losses appropriated for the current year. Net profit K200, 0000 Salary K30, 000 Interest on drawings A K10, 000 B K8, 000 C K7, 000 Interests on capital A K20, 000 B K15, 000 C K15, 000 You are required to calculated the partners share of taxable income for tax purposes.A, B, C, and D are partners, sharing earnings in the ratio of 3/21, 4/21, 6/21 and 8/21, respectively. The balances of their capital accounts on December 31, 20xl are as follows: P1,000 25,000 A... В.. C... 25,000 D.. 9,000 P 60,000 The partners decide to liquidate, and they accordingly convert the non-cash assets into P23,200 of cash. After paying the liabilities amounting to P3,000, they have P22,000 to divide. Assume that a debit balance of any partner's capital is uncollectible. The share of C in the cash distribution to the partners was: (round-off answer) а. 3,200 b. 8,200 13,800 d. 17,800 с.W and X are partners who have agreed to admit Y, who will invest P15,000 for a 20 percent interest. The previous capital balances were P15,000 and P30,000 for W and X, respectively. W and X had shared profits and losses equally. What amount will be recorded in Y's Capital account? a. P6,000 credit b. P12,000 credit c. P15,000 credit d. P9,000 credit
- Partners H & I share profit and loss in an agreed ratio of 90/10. In the case of a net loss of $10,000, Partner I’s capital account would be: Select one: Would not be affected Credited for $1,000 Debited for $9,000 Debited for $1,000Requirement: Compute for the respective shares of the partners in 3. The partnership agreement of A and B stipulates the following: Annual salaries of P100,000 for A and P60,000 for B. 20% bonus to A, based on profit after salaries and bonus. Balance is shared equally. The partnership earned profit of P520,000 before salaries and bonus. Requirement: Compute for the respective shares of the partners in the profit. 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 equally. 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 P60,000 on March 1, P40,000 on Sept. 30, and made drawings of P30,000 on Aug. 1 and P9,000 on Nov. 1. Requirement: Compute for the respective shares of the partners the profit.In the absence of a Partnership Agreement, which of the following principles apply? A. Interest on drawings is 5%.B. Profits and losses are shared equallyC. Interest on capital is 5%D. Profits and losses are shared in proportion to their capital.
