X and Y are partners and have beginning capital balances of P 360,000 and P 600,000, respectively Partnership profits and losses are allocated as follows salaries of P 160,000 and P 200,000 to X and Y, respectively. 10% interest on their beginning capital balances, any remaining profit is divided equally Partnership profit of P 600,000 is allocated as follows:

X and Y are partners and have beginning capital balances of P 360,000 and P 600,000, respectively Partnership profits and losses are allocated as follows salaries of P 160,000 and P 200,000 to X and Y, respectively. 10% interest on their beginning capital balances, any remaining profit is divided equally Partnership profit of P 600,000 is allocated as follows:

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...

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X and Y are partners and have beginning capital balances of P 360,000 and P 600,000, respectively. Partnership profits and losses are allocated as follows: salaries of P 160,000 and P 200,000 to X and Y, respectively; 10% interest on their beginning capital balances, any remaining profit is divided equally. Partnership profit of P 600,000 is allocated as follows: a. X – P 300,000; Y – P 300,000 b. X – P 280,000; Y – P 320,000 c. X – P 268,000; Y – P 332,000 d. X – P 192,000; Y – P 408,000
X and Y are partners and have beginning capital balances of P 360,000 and P 600,000 respectively. Partnership profits and losses are allocated as follows salaries of P 160,000 and P 200,000 to X and Y, respectively, 10% interest on their beginning capital balances, any remaining profit is divided equally Partnership profit of P 600,000 is allocated as follows: A. X =P 300,000,V-P 300,000 B. X =P.280,000,Y-P320,000 C. X =P 2600. V - P * 332000 D. X = P * 192000Y = P * 40B, 0
Partners A and B have a profit and loss agreement with the following provisions: • Salaries of P30,000 and P45,000 for A and B, respectively; The interest of 10% on average capital balances of P50,000 and P65,000 for A and B, respectively. • One-fourth of any remaining profits are allocated to A and the ratio to B. If the partnership had a net income of 250,000, how much profit is allocated to Partner B? ●
A and B formed a partnership. The partnership agreement stipulates the following: * First, A shall receive 10% of profit up to P100, 000 and 20% over P100, 000. * Second, B shall receive 5% of the remaining profit over P150, 000. * Any remainder shall be shared equally The partnership earned profit of P150, 000 Requirement: Compute for the respective shares of the partners in the profit.
X, Y and Z are partners sharing profits and lossed equally. As per partnership Deed, Z is entitled to a commission of 10% on the net profit after charging such commission. The net profit before charging commission is $220,000. Determine the amount of commission payable to Z.
The following are the partnership agreement between partners Baby Love & Honey Sweet for their partnership’s profit distribution:A. Each partners shall be entitled for an annual salary of P50,000 each.B. 15% Bonus of partnership profits after salaries to Honey Sweet being a managing partner.C. 20% interest is given to both partners based on average capital ratio.D. Residual profit and loss shall be distributed on the ratio 2:2The ledgers of their capital balances are shown below: Baby Love Debit: July 1. P20,000 Credit: Jan 1. P80,000 Oct 1. P40,000 Honey Sweet Debit: Oct 1. P10,000 Credit: Jan 1. P120,000 May 1. 30,000 The partnership profit for the year is P150,000 before distribution to partners Required: 1. Prepare a Schedule for Profit Distribution.2. Journal entry to record the distribution of profit to partners.
2. A and B's partnership agreement provided for annual salary allowances of P160,000 for and P80,000 for B. Profits are shared equally, while losses on a 70;30 ratio. The partnership earned profit of P200,000. Requirement: Compute for the respective shares of the partners in the profit.
Partners MM and LL have profit and loss agreement with the following provisions: salaries of P30,000 and P45,000 for MM and LL, respectively; a bonus to MM of 10% net income after salaries and bonus; and interest of 10% on average capital balances of P20,000 and P35,000 for MM and LL, respectively. One-third of any remaining profits will be allocated to MM and the balance to LL. If the partnership had a net income of P104,500, how much should be allocated to MM, assuming the provisions of the profit and loss agreement are ranked by order of priority, starting with salaries?
1. Partners MM and LL have profit and loss agreement with the following provisions: salaries of P30,000 and P45,000 for MM and LL, respectively; a bonus to MM of 10% net income after salaries and bonus; and interest of 10% on average capital balances of P20,000 and P35,000 for MM and LL, respectively. One-third of any remaining profits will be allocated to MM and the balance to LL. If the partnership had a net income of P104,500, how much should be allocated to MM, assuming the provisions of the profit and loss agreement are ranked by order of priority, starting with salaries?2. Renalie and Ben are partners who share profits and losses in the ratio of 6:4, respectively. On June 1, 20X2, their respective capital accounts were as follows:• Renalie - P60,000 • Ben - P50,000On the same date, Jeremiah was admitted as a partner with 1/5 interest in capital and profits for an investment of P40,000. What is the capital of Ben after Jeremiah’s admission if the partnership began with a total…
The partnership agreement of partners A, B and C stipulates the following: A shall receive a salary of P40,000. Interest of 10% shall be computed on the partners' capital contributions of P40,000, P100,000 and P200,000. • Balance is divided among the partners on a 2:3:5 ratio. However, C is guaranteed a minimum share of P40,000, inclusive of interest, if the partnership earns profit. How much is the minimum level of profit necessary so that A shall receive a total of P50,000, inclusive of salary, interest and share in remaining profit, and C shall also receive his guaranteed minimum share?
The profit and loss sharing agreement for the A, B, and C partnership provides that each partner receive a bonus of 3% on the original amount of partnership net income if there is a net income. A and B receive a salary allowance of P10,500 and P15,500, respectively. C has an average capital balance of P300,000, and receives a 10% interest allocation on the amount of his average capital account balance. Residual profits and losses are allocated to A, B, and C in their respective ratios of 1:1:2. Compute the share of the net income for each partner for each of the following partnership net income/losses. Partnership Net Income 50,000 Partnership Net Loss 20,000
LL, MM, and PP are partners with capitals of P 40,000, P 25,000, and P 15,000 respectively. The partnership agreement provides that each partner shall be allowed 5 percent on his capital, and that LL shall be allowed an annual salary of P 8,500 and that MM shall be entitled to a minimum of P 14,000 per annum including amounts allowed as interest on capital and as share of profit. Profit after interest and salary allowances is to be divided between LL, MM, and PP 5:3:2 respectively. What amount must be earned by the partnership during 2020 before charges for interest or salary if LL is to receive an aggregate of P 20,000 to include interest, salary, and share of profit? CC, DD, and EE, doctors, agree to form a partnership and to share profits in the ratio of 5:3:2. They also agreed that EE is to be allowed a salary of P 14,000, and that DD is to be guaranteed P 10,500 as his share of the profits. During the first year of operation, income from fees are P 90,000, while expenses total P…