5. Del Mundo, Ballada and Mendoza are partners sharing profit on a 7:2:1 ratio.Burgos was admitted into the partnership with 15% share in profit on Jan. 1, 2019.The old partners continue to share profit in their original ratios,For the year 2019, the partnership showed a profit of P15,000. However, it wasdiscovered that the following items were omitted in the firm's books:Unrecorded at year-end:20182019Accrued ExpenseAccrued IncomeP1,050875Prepald ExpenseUnearned IncomeP1,4001,225The share of Ballada in the 2019 profit isa. P2,197.50.b. P2,637.00.c. P2,490.50.d. P3,149.75.6. The partnership of Ronzales, Adalem and Bio' divides profits or losses in the ratio of4:5:3. During 2019, the business earned P80,000. 'Bio's share of this profit isа. Р33,334.b. P26,667,с. Р32,000.d. P20,000.7. Kwong and Morales entered into a partnership as at Mar. 1, 2019 by the invèstingP125,000 and P75,000, respectively. They agreed that Kwong, as the managingpartner, was to receive a salary of P30,000 per year and a bonus computed at 10%of the profit after adjustment for the salary; the balance of the profit was to bedistributed in the ratio of their original capital balances. On Dec. 31, 2019, normalaccount balances were as follows:CashAccounts PayableKwong, CapitalMorales, CapitalKwong, DrawingMorales, DrawingP70,000P 60,000125,000Accounts Receivable67,00045,0005,000Furniture & Fixtures75,000Sales Returns20,000PurchasesOperating Expenses196,00060,00030,000Sales233,000Inventories on Dec. 31, 2019 were as follows: supplies, P2,500, merchandise,P73,000. Prepaid insurance was P950 while accrued expenses were P1,550.Depreciation rate was 20% per year. The partners' capital balances on Dec. 31,2019, after closing the profit and drawing accounts, were:MoralesKwongP135,940P139,540KwongP139,680P142;350MoralesP47,960P49,860а.C.P48,680P47,670b.d.

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Del Mundo, Ballada and Mendoza are partners sharing profit on a 7:2:1 rat Burgos was admitted into the partnership with 15% share in profit on Jan, 1, 20 The old partners continue to share profit in their original ratios. For the year 2019, the partnership showed a profit of P15,000. However, it was discovered that the following items were omitted in the firm's books: Unrecorded at year-end: 2018 2019 Accrued Expense Accrued Income P1,050 875 Prepald Expense Unearned Income P1,400 1,225 The share of Ballada in the 2019 profit is a. P2,197.50. b. P2,637.00. c. P2,490.50. d. P3,149.75.

Del Mundo, Ballada and Mendoza are partners sharing profit on a 7:2:1 rat Burgos was admitted into the partnership with 15% share in profit on Jan, 1, 20 The old partners continue to share profit in their original ratios. For the year 2019, the partnership showed a profit of P15,000. However, it was discovered that the following items were omitted in the firm's books: Unrecorded at year-end: 2018 2019 Accrued Expense Accrued Income P1,050 875 Prepald Expense Unearned Income P1,400 1,225 The share of Ballada in the 2019 profit is a. P2,197.50. b. P2,637.00. c. P2,490.50. d. P3,149.75.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 4PB

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5. Del Mundo, Ballada and Mendoza are partners sharing profit on a 7:2:1 ratio. Burgos was admitted intothe partnership with the 15% share in profit on Jan. 1, 2019. The old partners continue to share profit intheir original ratios.For the year 2019, the partnership showed a profit of P15,000. However, it was discovered that thefollowing items were omitted in the firm’s books.Unrecorded year-end: 2018 2019Accrued Expense P1,050Accrued Income 875Prepaid Expense P1,400Unearned Income 1,255The share of Ballada in the 2019 profit isa. P2,197.50b. P2,637.00c. P2,490.50d. P3,149.75
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