Anna and Ben formed a partnership with investments of P1,000,000 and P500,000, respectively. Net income is P210,000. The partners agreed on the following: . 10% interest on original investments . Anna's salary allowance of 120,000 and Ben's salary allowance of P144,000 . Balance 1:2 between Anna and Ben, respectively How much is Anna's share in the net income?

Anna and Ben formed a partnership with investments of P1,000,000 and P500,000, respectively. Net income is P210,000. The partners agreed on the following: . 10% interest on original investments . Anna's salary allowance of 120,000 and Ben's salary allowance of P144,000 . Balance 1:2 between Anna and Ben, respectively How much is Anna's share in the net income?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Andi, Berri and Cori are partners sharing profit and loss in the ratio 3:5.2. Capital balances before the admission of Dani were P80,000, P100,000 and P120,000 respectively. Assuming Dani is to invest P300,000 in the new partners' capitalization of P600,000, but would be credited for P290,000, after the admission, Andi would have a capital balance of
James joined a partnership by contributing the following: cash, P20,000;accounts receivable, P4,000; land, P240,000 fair value; and accounts payable, P16,000. What will be the initial amount recorded in James’ capital account? Give the entry to record the investment of James
The partnership of Dina and Zia has assets of P 2,000,000 and liabilities of P 600,000. The capital balances of the partners are P 800,000 and P 600,000 respectively. Their old profit and loss sharing ratio is 60:40. They are inviting Heeka to join the partnership. If Heeka invests P 500,000 and will be give a 20% interest in the new partnership, how much will the adjusted capital of Dina after admission of Heeka? P 800,000 P 1,140,000 P 872,000 P860,000 Using the same information in no.6, how much is the capital credit given to Heeka in the new partnership? P 380,000 P 500,000 P 350,000 Answer not given
A and B form a new partnership. A invests P300,000 in cash for his 30% interest in the capital and profits of the business. B contributes cash and building with a fair market value of P600,000. The building is subject to a P40,000 mortgage that the partnership will assume. Compute the amount of cash B should contribute.
Matthews, Williams, and Shen share equally in net income and net losses. After the partnership sells all assets for cash, divides the losses on realization, and pays the liabilities, the balances in the capital accounts are as follows: Matthews, $28,000 Cr.; Williams, $62,500 Cr.; Shen, $18,000 Dr. a. What term is applied to the debit balance in Shen’s capital account? b. What is the amount of cash on hand? c. Journalize the transaction that must take place for Matthews and Williams to receive cash in the liquidation process equal to their capital account balances. Liquidating partnerships— capital deficiency
Pan and Sit share profits in the ration of 3:2. However, Pan is to receive a bonus of 20% of the profits, in addition to her profit share. The partnership made a profit for the year of P24,000 before the bonus. Assuming Pan's bonus is computed in profit after deducting said bonus, how much profit share will Sit receive?
The first question: Amer, Hassan and Saad agreed to form a solidarity company on 7/11/2019 to sell furniture and furnishings to buy furniture and furnishings with a capital of 100,000 dinars between the partners to:1. Profits and losses are distributed in the ratio of 3: 2: 5, respectively.2. Partner Amer and Hassan pay their shares in cash, which are 20,000 and 30,000, respectively.3. The partner Saad pays his share in the capital of Asaad and the liabilities of his establishment detailed in the condition that the rest of the receivable is paid in cash.Statement book value preferred valueGoods 12000 13000Accounts receivable 8,000 8,000NS. blood. It has 50060014000 . carscompound depreciation 8,000Car book value 6,000 9,000Accounts Payable 2,000 2,000 Required: Making the journal entries to be included in the formation of the new company, as well as copying the company’s balance sheet on 7/11/2019.
The XYZ Partnership shows a net profit of P600,000 during the year. If partners X, Y, Z has income ratios of 50%, 30%, and 20%, respectively, How much is Z's share from the net income of the partnerships?
X, Y and Z are partners and have equities of P 5 000 each. With the consent of X and Y, Z is about to sell ½ of his equity to W for a bag of popcorn and P 50 cash. Give the entry on the books of the partnership to record the admission of W
The XYZ Partnership shows a net profit of P600,000 during the year. If partners X, Y, Z has income ratios of 50%, 30%, and 20%, respectively, How much is Z's share from the net income of the partnerships?
Bruce, 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?
Ariel, Bambi and Cindy put up a partnership with a P120,000 capital. They agreed that Ariel will contribute 13, Bambi 38%, and Cindy for the balance. 50 a. How much is the capital contribution of each partner? b. What is the fractional part of Cindy's capital contribution? (answer should be in fraction.