ABC, DEF and GHI formed a partnership on April 1, 2022 and contributedP300,000, P200,000 and P500,000 respectIVERSThe partners agreed thatincome will be disturbed asas follows:Annual Salary: ABC for P24,000, DEF for P18,000 and GHI forP12,000▸ Interest of 12% on the average capital during 2022 of the threepartners➤ The remainder in the ratio of 40%, 40% and 20% for ABC, DEF andGHI respectively.The operating income for the year ending December 31, 2022 amounted toP176,000. ABC contributed additional capital of P60,000 on July 1, 2022and made a withdrawal of P20,000 on October 1h DEF contributedadditional capital of P40,000 on August 1 and made a withdrawal of P5,000on October 1. GHI made a withdrawal of P30,000 on November 1. Computefor the share of income of DEFvalidation of grade; 3rd violation- suspensionDETreadmission with invalidation of grade131VERS-1502

Statement showing calculation of Average Capital of DEF Particular Amount…

Answered: Interest of 12% on the average capital…

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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A and B are two partners. Theyagreed to allow interest on capital@5% per annum. Capital accountsas 1.4.16 were A 20,000 RS and B15,000 rsA introduced further capital of rs5000 on 1.10.16 and B introduced rs3000 on 1.10.16Calculate interest on Capital of eachPartner as 31.3.17 Please avoid solutions in image thnku
A, B and C share profits and losses in the ratio of 3:2:1. C is to receive a salary of K30, 000 as managing partner, and interest at the rate of 15% p. a is to be charged on drawings. Further, Interest to be earned by partners on their capital contributed. The following are the results of the profits and losses appropriated for the current year. Net profit K200, 0000 Salary K30, 000 Interest on drawings A K10, 000 B K8, 000 C K7, 000 Interests on capital A K20, 000 B K15, 000 C K15, 000 You are required to calculated the partners share of taxable income for tax purposes.
If the net income is P 200,000, salaries given to partners amount to 60,000, interest to partners’ capital amount to 40,000 and bonus is 20% of net income after salaries, interest, and bonus, how much is the bonus?
17-18. The balance sheet of partners DES, PA and SITO as of December 31, 2020 are shown below: Cash– P50,000; Noncash assets – P250,000; Liabilities – P80,000; Des, Capital (50%) – P100,000; Pa, Capital(25%) P75,000; Sito, Capital (25%) – P45,000. On January 2021, certain noncash assets were sold for acertain amount. Liquidation expenses and liabilities of P4,000 and P25,000 were paid. Future liquidationexpenses of P5,000 are anticipated. Pa received P42,750 from the first distribution of available cash.17. How much is the cash received from the realization? a. P120,000b. P140,000c. P130,000d. P75,000
In 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 300,000 How much is B's share in net income/ net losses? A. 273,356.80 b. 263,356.80 C. 436,643.20 D. 473,356.80
10. The partners' capital (income-sharing ratio in parentheses) of Acosta, Bautista, Campos, & Dela Cruz LLP on May 31, 2020, was as follows: P195,000 Acosta (20%) Bautista (20%) Campos (20%) Dela Cruz (40%) Total partners' capital (20%) P812,500 260,000 227,500 130,000 On May 31, 2020, with the consent of Acosta, Bautista, and Dela Cruz: a. Sam Campos retired from the partnership and was paid P162,500 cash in full settlement of his interest in the partnership. b. Lois Elon was admitted to the partnership with a P65,000 cash investment for a 10% interest in the net assets of Acosta, Bautista, Dela Cruz & Elon LLP. The capital account to be credited to Elon: a. P71,500 b. P87,750 C. P65,000 d. P81,250 194
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During 2020, ASHE and JINX maintained average capital balances of in their partnership of P200,000 and P150,000, respectively. Both partners receive 10% interest on average capital balances, and residual profit or loss is to be divided equally. Partnership profit before interest was P10,000. By what amount should JINX's capital account change for the year?

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Interest of 12% on the average capital during 2022 of the three partners