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:

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:

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 9E

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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 to P 300,000.How much is A's share in the net income/net loss?
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
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
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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)
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For the year 2021, the partnership of AMMAR and BANU realized a net profit of P240,000. The capital accounts of the partners show the following postings: Jan. 1 May 1 July 1 Aug. 1 Oct. 1 AMMAR Debit Credit Debit Credit 20,000 10,000 120,000 BANU 10,000 10,000 5,000 80,000 20,000 Question 5 If the profits are to be divided based on average capital, how much will be the share of AMMAR?
Several Years ago GO and Bato formed GB Partnershp. The partnership agreement states that each partner is to receive a salary of P10,000 per month and 5% interest on beginning-of-the-year capital balances; any remainder would be divided between Go and Bato in the ratio 2:3, respectively. The unadjusted trial balance of GB Partnership as of December 31, 2020, appears as follows: Debits Credits Cash P500,000 Accounts Payable 350,000 Accounts Receivable 300,000 Notes Payable 200,000 Inventory, 1/1/2020 400,000 Go, Capital 750,000 Furnitires & Fixt (net) 150,000 Bato, Capital 620,000 Building, net 300,000 Sales 800,000 Go, drawing 100,000 Bato, drawing 120,000 Purchases 600,000 Operating Expenses 250,000…