On January 1, 2020, July 1,2020, A invests an additional P 10,000 and B withdraws P 11,600. Profits and losses are divided as follows: Dala Each of the partners shall be givel 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 A's capital after distribution of the net income/ net losses?

On January 1, 2020, July 1,2020, A invests an additional P 10,000 and B withdraws P 11,600. Profits and losses are divided as follows: Dala Each of the partners shall be givel 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 A's capital after distribution of the net income/ net losses?

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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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 300,000 For the year 2021, the income summary account has a credit balance of P 500,000 and there are no additional investments or withdrawals during the year. How much is B's share in net income/ net losses for the year 2021? A. 303,885.43 B. 196,114.57 C. 108,111.75 D. 180,880.25
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 1,120,000. How much is B's share in the net income/net loss? A. (151,084.80) B. 436,643.20 C. (463,463.20) D. (80,476.80)
Partners A and C shall receive annual salaries of B12,000 and B8,000, respectively. A bonus of 10% of profit after salaries but before deduction of bonus shall be given to Partner A, the managing partner. Each partner shall receive 10% interest on average capital investments. Any remaining profit or loss shall be shared as follows: 40% to A and 30% each to B and C. The average capital investments of partners during the year are as follows: A B100,000 60,000 120,000 Assiuming that the partnershin earnec a profit amounting to P10 000 1 point
The partnership agreement of A, B and C stipulates the following: Partners A and C shall receive annual salaries of 12,000 and ₱ 8,000, respectively. A bonus of 10% of profit after salaries but before deduction of bonus shall be given to Partner A, the managing partner. (Deduct the salaries to the profit, as basis for computation) Each partner shall receive 10% interest on average capital investments. Any remaining profit or loss shall be shared as follows: 40% to A and 30% each to B and C. The average capital investments of partners during the year are as follows: A ₱100,000 B 60,000 C 120,000 The partnership earns profit of ₱100,000. Requirement: Compute and explain for the respective shares of the partners on the partnership profit.
The partnership agreement of A, B and C stipulates the following: Partners A and C shall receive annual salaries of 12,000 and ₱ 8,000, respectively. A bonus of 10% of profit after salaries but before deduction of bonus shall be given to Partner A, the managing partner. (Deduct the salaries to the profit, as basis for computation) Each partner shall receive 10% interest on average capital investments. Any remaining profit or loss shall be shared as follows: 40% to A and 30% each to B and C. The average capital investments of partners during the year are as follows: A ₱100,000 B 60,000 C 120,000 The partnership earns profit of ₱100,000. Requirement: Compute for the respective shares of the partners on the partnership profit.
Babes and Honey, on January 1, 2022, have respective capital balances of P300,000 and P500,000. Babes invested an additional P300,000 on June 30, while Honey invested an additional P600,000 on November 1. Babes had a capital withdrawal of P200,000 on September 30. The partners allow respective monthly salaries of P5,000 and P6,000, credit of 15% interest on average capital balances, and share any residual earnings equally.If the net income is P250,000 for 2022, Honey’s distributive share would be:
QUESTION 2 Prepare the Statement of Changes in Equity for the year ended 28 February 2021. INFORMATION The information given below was extracted from the accounting records of Preston Traders, a partnership business with Presley and Tony as partners. Extract from the trial balance of Preston Traders on 28 February 2021 Debit Credit R R Capital: Presley 600 000 Capital: Tony 400 000 Current alc: Presley (01 March 2020) 40 000 Current a/c: Tony (01 March 2020) 50 000 Drawings: Presley 340 000 Drawings: Tony 360 000
On January 1, 2020, X and Y have capital balances of P 50,000 and P 100,000. Partner X made monthly withdrawals of P 1,000 while Y made monthly withdrawals of P 1,500. Partners profit and loss agreement were as follows: 1. Annual salaries of P 60,000 for X and P 40,000 for Y 2. 10% interest on beginning capital 3. Remainder are shared equally. If the partnership capital at the end of the year is P225,000, the partnership profit (loss) for the year amounted to Place a parenthesis if net loss.
.On December 31, 2019, A and B have capital balances of P400,000 and P320,000, respectively. On April 1, 2020, A invested an additional P400,000 while she withdrew P100,000 at the beginning of the 4th quarter. B also made an additional investment of P300,000 and withdrew P20,000 on May 1. A is the managing partner and will receive a bonus equal to 10% of reported net income. Both partners shall receive 10% interest on their beginning capital, after which, any remainder shall be divided in the ratio of capital at the end of the period. The net income of the partnership for 2020 after tax is P600,000. How much is the share of A in the 2020 net income of the partnership?
The net loss of a XYZ partnership for the year is P100,000. Partner X is to be given a salary of 5,000 per month. The capital balances of X, Y and Z are P 150,000, P 160,000, and P 140,000, respectively. Interest in the capital balance will be given at a rate of 15%. Bonus of 10% after salaries and interest is given to partner Z. Remaining profit is to be distributed equally to the partners. In the process of journalizing the distribution of the loss, what will be done to the capital of X and in what amount? A. Credited by P 14,250 B. Debited by P 6,666 C. Credited by P 6,666 D. Debited by P 14,250
Partners A, B, and C have a profit and loss agreement with the following provisions: salaries of $13,000 and $12,000 for A and C, respectively; a bonus to C of 10% of net income after bonus; and interest of 6% on ending capital in excess of $100,000. Ending capital balance is $80,000 for A, $150,000 for B, and $110,000 for C. Remaining profit/loss is allocated to A, B, C in the ratio of 2:1:1. If the partnership had net income of $22,000, how much should be allocated to Partner C? Select one: 14,600 8,700 850 12,450
Additional information1. The net profit according to the Profit and Loss account amounted to R500 000 on 28February 2021.2. The partnership agreement made provision for the following:1. Interest on capital must be provided at 15% per annum on the balances in the capitalAccounts from 1 March 2020 to 31 August 2020. With effect from 1 September 2019 the interest rate on capital increases to 18% per annum.2. The partners are entitled to the following monthly salaries: Bobby R11 000Vincent R10 0003. Bobby is entitled to a bonus of 15% of the net profit before any appropriations are made.4. Bobby and Vincent share the remaining profits or losses in the ratio 3:2 respectively.