On January 1, 20x7 Jorgia, Lizza, Miles, Nice formed a partnership. At the time of formation, the partners agreed to the following amount of investment, division of profits and losses, and drawings: Jorgia Lizza Miles Nice Initial Investment P36,000 P56,000 P60,000 P40.000 Profit and Loss Ratio 15% 30% 35% 20% Annual Withdrawals 20x7 P14,400 P14,400 P14.400 P14.400 20x8 19.200 19.200 19.200 19.200 20x9 14,600 14.600 30.000 30.000
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- GWS and BCP organized the GB Partnership on January 1, 2018. The following entries were made in their capital accounts during 2018. Debit Credit GWS, Capital: January 1 April 1 October 1 P315,000 P105,000 175,000 Debit Credit ВСР, Саpital: January 1 March P413,000 1 September 1 November 1 52,500 105,000 94,500 Required: А. If the partnership profit for the year 2018 computed before salaries or interest is P217,000, determine its distribution between the partners under each of the following independent profit-sharing agreements: (1) Interest at 6% is allowed on average capital investments and the remainder of the profit is divided equally. (2) A salary of P126,000 is to be credited to BCP, 6% interest is allowed on each partner on his ending capital balance and the remainder of the profit in the ratio of 3:2. Salaries are allowed GWS and BCP in amounts of P119,000 and P133,000, respectively, and the remaining profit or resulting loss is divided in the ratio of average capital balance.…The following information relates to partner for the year ended 29 February 2020: Current account credit balance on 29 February 2020 20 000 Profit share 50 000 Salaries 180 000 Interest on capital 24 000 Drawings 220 000 Interest on drawings 2 000 What is the balance in the Current account of the partner on 01 March 2019? OA. R12 000 DR. B. R116 00O DR OC. R52 000 CR D. R12 000 CR S Type here to searchThe following information relates to partner for the year ended 29 February 2020: Current account credit balance on 29 February 2020 20 000 Profit share 50 000 Salaries 180 000 Interest on capital 24 000 Drawings 220 000 Interest on drawings 2 000 What is the balance in the Current account of the partner on 01 March 2019? A. R12 000 DR O B. R116 000 DR OC. R52 000 CR O D. R12 000 CR
- Item Nos. 17 and 18 are based on the following information: ebnismen orfT On December 31, 200C, the partnership of Hue and Teng realized a profit of P 225,000. The capital accounts of the partners showed the following debits and credits during 200C: 002 bes'200 Hue Teng March 1 credit P 20,000 P 50,000 July 1 debit 5411 25,000 August 1 credit 30,000 October 1 debit- 10,000 November 1 credit- 65,000 17. Assuming that the profit will be divided using the average capital, the share of Hue is: a. P 80,000. c. P 120,000. d. P 135,000. а. С. b. P 90,000. 000,008 nsw 18. If the profit will be divided equally after providing 12% interest on the opening capital, the share of Teng in the profit is: a. P 114,000. P 120,000. С. b. P 118,000. d. P 135,000. 00 000.009X&Y are Partners Jan or Initial Capital 01 March 30 Addl. Capital June 30 withdrawal Agreements. Int. on Ave. cape 10% Salary allow, y, 200k 9, 100 Remainder X, 60% Y₁ 40%% Propit for the year $1,200,000. X $ 800.000 $400,000 100.000 50.000 Required. Compute the FF. I. Ave. Cap.oF 2. lust-on Ave. cap. X 3. Share on balapter Salaries & Int. X 4. Total Share XOn January 31, 20x4, partners of VIP, LLP, had the following loan and capital account balances (after closing entries for January): Loan Receivable from V Loan Payable to P V, capital P40,000 dr 120,000 cr 60,000 dr 240,000 cr 140,000 cr I, capital P, capital The partnership's income sharing ratio was V, 50%; I, 20%; P, 30%. On January 31, 20x4, BJ was admitted to the partnership for a 20% interest in total capital of the partnership in exchange for an investment of P80,000 cash. Prior to BJ's admission, the existing partners agreed to increase the carrying amount of the partnership's inventories to current fair value, a P120,000 increase. The capital account to be credited to BJ:
- 7. The partnership agreement of Hi and Rap provides that interest at 14% per year is to be credited to each partner on the basis of weighted average capital balances. A summaryof Rap capital account for the year ended December 31, 2015, is as follows:Balance, January 1 P210,000Additional investment, July 1 60,000Withdrawal, August 1 (22,500)Balance, December 31 P247,500What amount of interest should be credited to Rap’s capital account for 2015?4. On January 31, 2021, partners L, M and N had the following loan and capital account balances (after closing entries for January): Loan Receivable from L Loan Payable to N L, Capital М, Сарital N, Capital P20,000 dr 60,000 cr 30,000 dr 120,000 cr 70,000 cr The partnership's income sharing ratio was L – 50%, M – 20%, and N – 30%. On January 31, 2021, O was admitted to the partnership for a 20% interest in total capital of the partnership in exchange for an investment of P40,000 cash. Prior to O's admission, the existing partners agreed to increase the carrying amount of the partnership's inventories to current fair value, a P60,000 increase. The capital account to be credited to O: а. Р60,000 b. P40,000 с. Р52,000 d. Р46,000Problem Below are the capital changes occurred on MonaLisa Partnership for the first year of operations: Date Mona, Capital Lisa, Capital Jan. 1 (original investment) P88,000 P69,000 Apr. 1 (3,000) Jun. 1 14,000 Oct. 1 6,000 (4,500) During the first year, the partnership earned net income of P66,600. Temporary withdrawals of P100 cash per month were agreed by both partners, and they both started withdrawing cash in July, and consistently made it monthly until year-end. Required: Determine the ending capital balances of both partners based on the following independent assumptions on allocating profits and losses. A P9,600 incentive to Mona, and the remainder to be allocated on the ratio of 1:2, respectively. It is also agreed that Lisa is guaranteed to receive at least P35,000 in case the partnership yields profit. 1. A 6% interest based on average capital balances, a monthly salary of P10,000 each to Mona and Lisa, and the remainder to be allocated equally. 2. A 10% interest on their…
- 20. The partnership agreement of Socorro and Torres provides that interest at 10% is to be credited to each partner on the basis of average capital balances. A summary of Torres Capital account for the year ended December 31, 2020 is as follows: Balance January 1 Additional Investment, July 1 Withdrawal, August 1 P 304,500 87,000 32,625 What amount of interest should be credited to Torres Capital account? a. P33,168.75 b. P33,440.625 C. P35,887.50 d. P37,518.75 21. Simple and Elegant share profits and losses equally, Simple and Elegant receive salary allowances of P105,000 and P157,500, respectively, and both partners receive 10% interest on their average capital balances. Average capital balances are calculated at the beginning of each month regardless of when the capital contributions and capital withdrawals were made and partners' drawings are not used in determining the average capital balances. Total net income for 2020 is P630,000. Simple P525,000 Elegant P630,000 January 1…The partnership agreement of X and Y provides that 12% interest per year is to be credited to each partner on the basis of average capital balances. A summary of Y capital for the year ended December 31, 2021 is as follows: Jan 1 Balance P840,000, July 2 Additional investment P240,000, August 1 Withdrawal P90,000, Dec. 31 Balance P990,000 What amount of interest should be credited to ⚫A, B, and C are in partnership as recreational suppliers, sharing residual profits or losses in the ratio of 5:2:3 respectively. At 1st November 2011 their capital and current balances were: Capital account Current account TZS TZS A 8,000,000 580,000 Cr 10,000,000 350,000 Dr 12,000,000 210,000 Cr Avitus Dominick: Msc Finance and Investment, CPA (T ) & BAC (0714-336097) 16