The partnership run by Evans, Fitch, and Gaul has a complicated profit-and-loss sharing arrangement. On December 31, 2006, each partner had an average capital balance of P300, 000 for Evans, P250,000 for Fitch, and P325,000 for Gaul. Each partner receives an allotment of 8% of the interest. A salary allotment of P10, 000 and P15, 000 is given to Evans and Fitch, respectively. Gaul will be given a bonus equal to 10% of the initial amount of net income if partnership net income exceeds P25, 000 after the salary allocations have been taken into account (but before the interest allocations have been taken into account). All residual revenue is distributed to Evans, Fitch, and Gaul in the proportions of 2:3:5. How much of the partnership's revenue, supposing it to be P250, 000, must be assigned to Gaul?
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- Xavier, Young, and Zane operate a partnership with a complex profit and loss sharing agreement. The average capital balance for each partner on December 31, 2021 is P300,000 for Xavier, P250,000 for Young, and P325,000 for Zane. An 8% interest allocation is provided to each partner based on the average capital balance on December 31, 2021. Xavier and Young receive salary allocations of P10,000 and P15,000, respectively. If partnership net income is above P25,000, after the salary allocations are considered (but before the interest allocations are considered), Zane will receive a bonus of 10% of the original amount of net income. All residual income is allocated in the ratios of 23.5 to Xavier, Young, and Zane, respectively. If the the partnership net income for 2021 is P250,000, the total share of Xavier, Young and Zane, respectively are:Bulan, Bustos, and Bucao formed a partnership on January 1, 2009 and contributed P150,000, P200,000, and P250,000, respectively. The Articles of Co-Partnership provide that the operating income be shared among the partners as follows: As salary: Bulan – P24,000; Bustos – P18,000; Bucao – P12,000; interest of 12% on the average capital during 2009 of the three partners; the remainder will be divided in the ratio of 2:4:4, respectively. Additional information: a. Operating income for the year ended December 31, 2009 is P180,000. b. Bulan contributed additional capital of P30,000 on July 1, and made drawing of P10,000 on October 1. c. Bustos contributed capital of P20,000 on August 1 and made withdrawal of P10,000 on October 1. d. Bucao made withdrawal of P30,000 on November 1. The division of the P180,000 operating income for Bucao will be: _____________The partnership agreement of Kray, Lamb, and Mann provides for the division of net income as follows: 1. Lamb who manages the partnership, is to receive a salary of P550,000 per year. 2. Each partner is to be allowed interest at 10% on beginning capital. 3. Remaining profits are to be divided equally. During 2020, Kray invested additional P200,000 in the partnership. Lamb withdrew P250,000, and Mann withdrew P200,000. No other investments or withdrawals were made during 2020. On January 1, 2020 the capital. balances of Kray, P3,250,00, Lamb P3,750,000, and Mann P3,500,000. Total capital at year end was PP12,600,000. Required: Prepare a statement of partners' capital for the year ended December 31, 2020.
- Ceradoy, Manongsong and Anuran are partners sharing residual profits in the ratio of 3:2:1. Thepartnership agreement provides for 8% interest on capital and a salary for Manongsong of P80,000 peranmum. Profit for 2019 was P840,000 and the year end balances on partner’s capital accounts are asfollows: Ceradoy, P2000,000; Manongsong, P150,000 and Anuran, P120,000. What was Anuran’s shareof residual profits for 2019?a. P120,400b. P126,670c. P130,000d. P140,000Coral, Camus and Cerda are partners sharing profits in the ratio of 5:3:2, respectively. As of December 31, 2008, their capital balances were P190,000, for Coral, P160,000 for Camus, P120,000 for Ceda.On January 1, 2009, the partners admitted Cordero as new partner and according to their agreement, Cordero will contribute P160,000 in cash to the partnership and also pay P20,000 for 15% of Camu’s share. Cordero will be given a 20% share in profits while the original partners’ share will be proportionately the same as before. After the admission of Cordero, the total capital will be P660,000 and Cordero’s capital be P140,000.1. The amount of the asset revaluation upon the admission of Cordero is2. The bonus, if any, upon admission of Cordero is3. The capital of Camus after the admission of Cordero is4. The partners’ profit and ratio after the admission of Cordero shall beNorrudin, Norsal, and Nasheb operate a partnership with a complex profit and loss sharing agreement. The average capital balance for each partner on December 31, 2006 is $300,000 for Norrudin, $250,000 for Norsal, and $325,000 for Nasheb. An 8.5% interest allocation is provided to each partner. Norrudin and Nasheb receive salary allocations of $10,000 and $15,000, respectively. All residual income is allocated in the ratios of 2:3:5 to Norrudin, Norsal, and Nasheb, respectively. (a) Prepare a schedule to allocate income to the partners assuming that partnership net income is $270,000. (b) Prepare a journal entry to distribute the partnership's income to the partners.
- Paddison and Wager have formed a partnership. During their first year of operations, the partnership earned $160,000. Their-profit-and-loss-sharing agreement states that, first, each partner will receive 20% of their capital balances. The second level is based on services, with $10,000 to Paddison and $20,000 to Wager. The remainder then will be shared 4:1 between Paddison and Wager, respectively. Read the requirements. ..... Requirement 1. Calculate the amount of income each partner will receive under their profit-and-loss-sharing agreement assuming Paddison's capital balance is $91,000 and Wager's capital balance is $91,000. (Complete all answer boxes. For amounts that are $o, make sure to enter "0" in the appropriate column.) Paddison Wager Total Net income (Iloss) Requirements Capital allocation: Paddison 1. Calculate the amount of income each partner will receive under their profit-and-loss-sharing agreement assuming Paddison's capital balance is $91,000 and Wager's capital…1. Say, Alittle and Prayer are partners in a furniture company. following profit and loss distributions; Their partnership agreement provides for the Say, Alittle and Prayer are to receive salaries of P40,000, P36,000, and P13,650, respectively. Say is to receive a bonus equal to 10% of income before the bonus. Each partner is to receive 10% interest on the weighted average capital balance. Withdrawals are considered to be reduction of capital for purposes of interest calculations. > Any remaining profits of losses are to be divided equally among the partners. Capital balance information for 2006 is as follows: Say 10,000 1,000 2,000 1,000 Alittle 6,000 Prayer 40,000 2,000 15,000 Jan. 1, 2006 Withdrawal 4/1/06 Investment 7/1/06 Withdrawal 10/1/06 4,000 2,000 Prepare distribution of profit or loss table showing the required profit that will allow Say to withdraw P65,000 from said profit. 2. Ashe Company was organized on January 1, 2010, with authorized capital of 100,000 shares of P200…Agustin contributed P78,000 and Biag contributed P156,000 to form nartnership, and they agreed to share profits in the ratio of their original capital contributions. During the first year of operations, they made a profit of P52,942.50; Agustin withdrew P16,412.50 and Biag P26,000. At the start of the following year, they agreed to admit Carlos into the partnership. He was to receive a one-fourth interest in the capital and profits upon payment of P97,500 to Agustin and Biag, whose capital accounts were to be reduced by transfers to Carlos' capital account of amounts sufficient to bring them back to their original capital ratio. How should the P97,500 paid by Carlos be divided between Agustin and Biag. a. Agustin, P31,931.25; Biag, P65,568.75. b. Agustin, P48,750; Biag, P48,750 C. Agustin, P32,500; Biag, P65,000. d. Agustin, P30,225; Biag, P67,275
- Hi, And B formed a partnership. The partnership agreement stipulates the following: * Annual salary allowances of P100,000 for A and P40,000 for B. * Bonus to A of 10% of the profit after partners' salaries but before deducting the bonus. Case 1: The partnership earned profit of P50,000 Requirement: Compute for the respective shares of the partners in the profit. Case 2: The partnership incurred a loss of P20,000. Requirement: a. Compute for the respective shares of the partners in the profit. b. By what amount did A's capital account change?" Will there be a bonus if the there's no profit only loss? Thank youBruce, Parker and May formed a partnership. Their capital balances showed the following. Bruce Capital P252,000; Parker, Capital-P126,000; May, Capital-P42,000. Their profit and loss ratio are 6:3:1. The partners decide to sell 20 percent of their interest to Violet for a total payment of P120,000 Violet will pay the money directly to the other partners. How much was the bonus debited or credited in partner Bruce’s capital account?On January 1, Carlo, Jamie, Roma, and Fe, formed CABLES Trading, a local partnership, with capital contributions of P500,000, P250,000, P350,000, and P200,000, respectively. The articles of co-partnership provided that: • Each partner shall receive a 6% interest on contributed capital; Carlo and Jamie shall receive monthly salaries of P15,000 and P13,000, respectively; • The balance of the profits shall be distributed to Carlo, Jamie, Roma, and Fe in 3:3:2:2 ratio, respectively. If the net income after tax for one quarter is P300,000, what is the share in the profit of Fe?