On January 1, 2018, A, B and C formed ABC Partnership with original capital contribution of P600,000, P1,000,000 and P400,000. A is appointed as managing partner. Read the data below. What is A's share in partnership profit for 2018?
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On January 1, 2018, A, B and C formed ABC
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- On March 1, 2018, X and Y formed a partnership. The partners contributed the following: (see attached image) The partners agree on the following:a. P10,000 of the accounts receivable of X is to be written-off.b. An allowance for doubtful accounts of 15% is to be established on the remaining receivables of X and Y.c. The inventory of Y is to be valued at P140,000.d. The equipment of X is under depreciated by P20,000 and the equipment of Y has a fair value of P190,000.e. The note of X is dated December 1, 2017 and is subject to a 12% interest. Interest had not yet been accrued.f. The partners agree on a 2:1 profit and loss ratio.g. The partners agree to bring their capital balance proportionate to their profit and loss ratio.Requirement:1. If Y's Capital is to be used as basis, how much is the adjusted capital of X after the formation? 2. What is the total assets of the partnership immediately after the formation?3. If the goodwill method is to be used in determining the capital of each…For the year 2021, the partnership of AMMAR and BANU realized a net profit of P240,000. The capital accounts of the partners show the following postings: Jan. 1 May 1 July 1 Aug. 1 Oct. 1 AMMAR Debit Credit Debit Credit 20,000 10,000 120,000 BANU 10,000 10,000 5,000 80,000 20,000 Question 5 If the profits are to be divided based on average capital, how much will be the share of AMMAR?Partners A and B formed a partnership on January 1, 2020 where Partner A invested P500,000 while Partner B invested P300,000. Profit and loss as agreed upon by partners is to be shared in the ratio of the original capital. The drawing accounts of Partners A and B have debit balances of P24,000 and P12,000 respectively. Net income for the period ending December 31, 2020 amounted to P180,200. What is capital balance of Partner B for the year ending December 31, 2020?
- E1, E2, and E3 are partners sharing profits in the ratio of 4:4:2 respectively. As of December 31, 2018, their capital balances were P190,000 for E1, P160,000 forE2, and P120,000 for E3. On January 2, 2019, the partners admitted E4 as a new partner and according to their agreement, E4 will contribute P160,000 in cash to the partnership and also pay E2 for 15% ofhis share. E4 will be given a 20% share in profits while original partners share will be proportionately the same as before. After the admission of E4, the total capital will be P660,000 and E4's capital be P140,000. What is the capital balance of E3 after the admission of E4?Use the following information for numbers 24 to 28. A, B and C formed a partnership on January 2, 2018 with contributions of P100,000, P200,000 and P300,000, respectively. The partners agreed on a capital ratio of 1:2:3 upon formation and P/L ratio of 3:3:4, respectively. The partnership reported a net loss of P20,000 for 2018. Also at the end of 2018, C has decided to withdraw from the partnership and was paid P250,000 cash. On April 1, 2019, D was admitted as a partner with an investment of P160,000. He is given a share of capital of 40% and in profits 30%. The old partners have agreed to retain their old ratio over the remaining profit and loss share of 70%. The partnership reported a net profit of P21,000 for 2019, one-third of which is deemed earned as of end of the year's first quarter's operation. Determine the capital balances of each partner as of December 31, 2018: 24. Partner A. 25. Рartner В. Determine the capital balances of each partner as of December 31, 2019: 26.…The capital accounts of Scott and Tucker at the end of the fiscal year 2019 are as follows: Scott, Capital January 1 Balance P210,000 Мay 1 Investment 90,000 October 1 Withdrawal Р60,000 Tucker, Capital January 1 Balance P150,000 April 1 Withdrawal P30,000 The partnership profit for the year ended December 31, 2019 was P300,000. Instruction: Prepare schedule of profit allocation and journal entries to record transfer to profit to the capital accounts under each of the following independent assumptions: 1. Profit is divided 60% to Scott and 40% to Tucker. 2. Profit is divided into ratio of capital balances at the beginning of the period. 3. Profit is divided in the ratio of average capital balance. Interest of 8% is allowed on the average capital and the balance of profit is divided equally. 4. Salaries of P60,000 and P48,000 are allowed to Scott and Tucker, respectively, and the balance of the profit is divided in the ratio of capital balances at the end of the period. 5. 6. Scott is…
- GWS and BCP organized the GB Partnership on January 1, 2018. The following entries were made in their capital accounts during 2018. Debit Credit GWS, Capital: January 1 April 1 October 1 P315,000 P105,000 175,000 Debit Credit ВСР, Саpital: January 1 March P413,000 1 September 1 November 1 52,500 105,000 94,500 Required: А. If the partnership profit for the year 2018 computed before salaries or interest is P217,000, determine its distribution between the partners under each of the following independent profit-sharing agreements: (1) Interest at 6% is allowed on average capital investments and the remainder of the profit is divided equally. (2) A salary of P126,000 is to be credited to BCP, 6% interest is allowed on each partner on his ending capital balance and the remainder of the profit in the ratio of 3:2. Salaries are allowed GWS and BCP in amounts of P119,000 and P133,000, respectively, and the remaining profit or resulting loss is divided in the ratio of average capital balance.…On January 1, 2031, A, B and C formed ABC Partnership with total agreed capitalization of P2,000,000. The capital interest ratio of the ABC Partnership is 5:1:4 while the profit or loss ratio is 3:2:5, respectively for A, B and C. During 2031, A and B made additional investments of P400,000 and P1,000,000, respectively. At the end of 2031, B and C made drawings of P600,000 and P200,000, respectively. On December 31, 2031, the capital balance of B is reported at P400,000. 7. What is the net income or net loss of ABC Partnership for the year ended December 31,2031?a. (P1,000,000)b. (P2,000,000)c. P1,600,000d. P2,400,0008. What is the capital balance of A on December 31, 2031?a. P900,000b. P700,000c. P1,100,000d. P800,0009. What is the capital balance of C on December 31, 2031?a. P300,000b. P100,000c. P400,000d. P500,000The accounts of the partnership of A, B and C at the end of its fiscal year on October 31, 2018 are as follows: P 78,750 Liabilities Loan from C Cash P262,500 Other Non-Cash Assets 682,500 26,250 52,500 Loan to B A, Capital (30%) B, Capital (50%) C, Capital (20%) 236,250 157,500 78,750 If P90,000 is available for distribution to partners after all non-partner liabilities are paid, how much should A receive? _8. D.
- Use the following information for numbers 29 and 30. On June 30, 2018, the balance sheet for the partnership of D, E and F, together with their respective profit and loss ratios, is summarized as follows: Assets 300,000 D, Loan 15,000 D, Capital (20%) 70,000 E, Capital (20%) F, Capital (60%) Total Liabilit ies and Capital 65,000 150,000 Total Assets 300,000 300,000 D has decided to retire from the partnership, and by mutual agreement the assets are to be adjusted to their fair values of P260,000 at June 30, 2018. It is agreed that the partnership will pay D, P102,000 cash for his interest exclusive of his loan which is to be repaid in full. After D's retirement, what are the capital balances of each partner? 29. Partner E. 30. Partner F.Income summary shows a credit balance of 1,800,000 at the end of the first year of operations.1. By what amount will the capital balance of MAR182 be credited on January 1, 2018?2. By what amount will the capital balance of MAR186 be credited on January 1, 2018?3. How much is the total assets of the partnership at the date of formation?4. What is the net effect of the adjustments made on January 1 to MAR186 capital balance?5. What is the weighted average capital of MAR182 in 2018?6. How much is the bonus given to MAR186?7. How much is the share of MAR182 in the partnership net income?8. How much is the share of MAR186 in the partnership net income?9. What is the ending adjusted capital balance of MAR182?10. What is the ending adjusted capital balance of MAR186?AA and BB are partners engaged in a manufacturing business. Transactions affecting the partners’ capital accounts in 2022 are as follows: AA BB Debit Credit Debit Credit Beg. Balance P250,000 P350,000 April 1 150,000 100,000 June 30 125,000 250,000 September 1 225,000 300,000 October 1 350,000 200,000 The income summary has a debit balance of P225,000. Agreement between AA and BB are as follows: Interest on average capital at 8%. Salaries of P125,000 and P175,000 are given to AA and BB, respectively. Bonus to BB at 25% of net income after deducting interest and salaries but before deducting bonus. Balance is to be divided equally. How much is the net increase (decrease) in BB’s capital account in 2022?