15. On January 2, 2020, BB and PP formed a partnership. BB contributed capitalof P175,000 and PP, P25,000. They agreed to share profits and losses 80%and 20%, respectively. PP is the general manager and works in thepartnership fulltime and is given a salary of P5,000 a month; an interest of5% of the beginning capital (of both partner) and a bonus of 15% of netincome before the salary, interest and the bonus.The profit and loss statement of the 'partnership for the year endedDecember 31, 2020 is as follows:P875,000700,000P175,000143,000P32,000Net SalesCost of goods soldGross profits'Expenses (including the salary, interest and the bonus)Net incomeThe amount of bonus to PP in 2020 amounted to:a. 13,304b. 16,45618,000d. 20,700с.

Partnership is an agreement between two or more than two persons, who invest their capitals, run…

Answered: 15. On January 2, 2020, BB and PP…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At December 31, A and B are partners with capital balances of P40, 000 and P20, 000, and they share profits and losses in the ratio of 2:1, respectively. On this date, C invests P17,000 in cash for a one-fifth interest in the capital and profit of the new partnership. Assuming that the bonus method is used, how much should be credited to C's capital account on December
15. Rosemarie and Rose are partners sharing profits and losses in the ratio of 7:3 respectively. On February 14, 2020, their respective capital balances are as follows: Rosemarie: P 35, 000; Rose: P 30, 000. On that day, they agreed to admit Rosauro as partner with one third interest in the capital and profits and losses upon investment of P 25, 000. The new partnership will begin with a total capital of P 90, 000. Immediately after the admission of Rosauro, the capital balances of Rosemarie, Rose and Rosauro respectively must be: a. P 30, 000; P 30, 000; P 30, 000 b. P 31, 667; P 28, 333; P30, 000 c. P 31, 500; P 28, 500; P 30, 000 d. P 35, 000; P 25, 000; P 30, 000 e. answer not given
.X and Y formed a partnership on January 1, 2020. X contributed net assets of P500,000 and Y no capital contribution because she will manage the firm on a full time basis. Their partnership agreement to distribute profit were as follows: a) Interest at 5% shall be allowed on the beginning capital. b) Y is to be paid salaries of P10,000 per month. c) Y is to received a bonus of 30% of profit before deducting interest and salaries. d) Profits are to be divided between X and Y in the ratio of 6:4 There are no withdrawals by either partner during the year. The partnership statement of income contains the following information. Revenues P1,520,000 Expenses (including salary and interest) 820,000 Profit P 700,000 How much is the equity of X at year-end?
On January 1, 2020, A and B have capital balances of P 200,000 and P 300,000 respectively. On July 1,2020, A invests an additional P 10,000 and B withdraws P 11,600. Profits and losses are divided as follows:- Each of the partners shall be given 3,000 monthly salary;- Interest of 12% on ending capital balances;- Bonus to B of 10% of profit after salary but before interest and bonus if profit exceeds 500,000 for the year.- Any remainder is divided in the ratio of their capital balances at the start of the year.Revenues for the year totaled P 1,000,000 and Expenses amounted to P 300,000.How much is A's share in the net income/net loss?
Assuming the partnership incurred a loss of P400,000 in 2020. Since they are both active in partnership's affair, each one will receive a P50,000 salaryallowance per year Tasks: determine the new partners' capital after the distribution of profit and loss.
A and B formed a Partnership on January 1, 2020. A contributed capital of P50,000, while B contributed capital of P30,000. The Partnership agreement provides for the following: o Capital accounts are to be credited annually with interest at 5% of the beginning capital. o Partner B is to be paid salary of P2,000 a month. o Partner B is to receive a bonus of 10% based on the net income. The Partnership's income statement for the year ended is as follows: Revenues P101,000 30,000 71,000 Expenses (including salary, interest, and bonus) Net income Determine the amount of bonus.
Energetic and Faithful decided to form a partnership on June 1, 2021 by investing P100,000 and P150,000 respectively. They agreed that profits are to be divided as follows: • Partners are to receive a 10% interest on beginning capital. • Each partner is to receive an annual salary of P24,000. Energetic, the managing partner, is to receive a bonus equivalent to 10% of the net income after interest, salaries and bonus. • The remaining profit is to be divided equally. Energetic invested P50,000 on August 1 and withdrew cash amounting to P10,000 on December 1. Faithful invested P15,000 on September 1 and withdrew cash amounting to 5,000 in November 1. During the year, the partnership had a net income of P80,000. How much is the share of Energetic in the net income?
5
4. A and B's partnership agreement provides for an annual salary allowance of P100,0 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 in the profit.
M, N, and 0 formed a partnership on January 1, 200A with 3.7 investments of P 40,000, P 24,000 and P 20,000, respectively. The partners agreed to the following distribution of profits: Annual salaries allowed: М, Р 4,800; N, P 6,000; 0, Р 6,000 5% interest on the beginning capital. M, the managing partner is allowed a bonus of 20% of the net profit after treating as expenses the partners' salaries, interest, and bonus. Profits after the allowances are to be divided 3:3:4, for M, N, and O, respectively. For the year 200A, the net profit before interest, salaries, and bonus amounted to P 29,400. Cash withdrawals made were M, P 10,200; N, P 12,000; and O, P 10,600. REQUIRED: Prepare a Statement of Partners' Equity for the year ended December 31, 200A.
17. Un, Balaba, and Monta are partners with average capital balances during 2020 of P360,000, P180O,000, and P120,000, respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of P90,000 to Un and P60,000 to Monta, the residual profit or loss is divided equally. In 2020, the firm sustained a P99,000 loss before interest and salaries to partners. By what amount should Un's capital account change? P105,000 decrease P33,000 decrease a. С. P21,000 increase b. d. P126,000 increase
A and B share profits and losses equally. A and B receive salary allowances of P20,000 and P30,000, respectively, and both partners receive 10% interest on their average capital balances. Average capital balances are calculated at the beginning of each month balance regardless of when additional capital contributions or permanent withdrawals are made subsequently within the month. Partners' drawings are not used in determining the average capital balances. Total net income for 2016 is P120,000. А B January 1 capital balances Yearly drawings (P1,500 a month) Permanent withdrawals of capital: P100,000 18,000 P120,000 18,000 June 3 (12,000) May 2 Additional investments of capital: (15,000) July 3 October 2 40,000 50,000 Question: What is the weighed-average capital for A and B in 2016?

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