Partners A and B formed a partnership on July 1, 2021. Partner A invested P400,000 while Partner B invested P600,000. They agreed that the residual profits and losses are to be shared in a 3:2 ratio after monthly salary allowances of P12,000 and P20,000 are allowed to Partner A and Partner B respectively. They agreed as well that 10% interest will be provided on their respective beginning capital. Net income for the period ending December 31, 2021 amounted to P250,000. How much is the profit share of Partner A?
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- On January 1, 2023, AA and BB formed AB partnership with a total agreed capital of P5,000,000 and a capital interest ratio of 70:30. The following were ascertained during the year as to distribution of profits and losses: • AA will receive quarterly salaries of P100,000 5% interest on initial capital will be provided Any remainder will be shared by their capital contribution ratio At the end of the year, the partnership had a P500,000 credit balance in its income summary account. How much is the share of AA in the partnership income (loss)?Kwong and Morales entered into a partnership as at Mar. 1, 2019 by the investing P125,000 andP75,000, respectively. They agreed that Kwong, as the managing partner, was to receive a salary ofP30,000 per year and a bonus computed at 10% of the profit after adjustment for the salary; the balanceof the profit was to be distributed in the ratio of their original capital balances. On Dec. 31, 2019, normalaccount balances were as follows:Cash P70,000 Accounts Payable P 60,000Accounts Receivable 67,000 Kwong, Capital 125,000Furniture and Fixtures 45,000 Morales, Capital 75,000Sales Returns 5,000 Kwong, Drawing 20,000Purchases 196,000 Morales, Drawing 30,000Operating Expenses 60,000 Sales 233,000Inventories on Dec. 31, 2019, were as follows: supplies, P2,500, merchandise, P73,000. Prepaidinsurances was P950 while accrued expenses were P1,550. Depreciation rate was 20% per year. Thepartner’s capital balances on Dec. 31, 2019, after closing the profit and drawing accounts, were:Kwong Moralesa.…Energetic and Faithful decided to form a partnership on June 1, 2021 by investing P100,000 and P150,000 respectively. They agreed that profits are to be divided as follows: • Partners are to receive a 10% interest on beginning capital. • Each partner is to receive an annual salary of P24,000. Energetic, the managing partner, is to receive a bonus equivalent to 10% of the net income after interest, salaries and bonus. • The remaining profit is to be divided equally. Energetic invested P50,000 on August 1 and withdrew cash amounting to P10,000 on December 1. Faithful invested P15,000 on September 1 and withdrew cash amounting to 5,000 in November 1. During the year, the partnership had a net income of P80,000. How much is the share of Energetic in the net income?
- On January 1, 2021, A, B, C and D formed Bakya Trading Co., a partnership, with capitalcontributions as follows: a, 50,000; B,25,000; C 25,000 and D 20,000. The partnership contractprovided that each partner shall receive a 5% interest on contributed capital, and that A and B shallreceive salaries of 5,000 and 3,000 respectively. The contract also provided that C shall receive aminimum of 2,500 per annum and D a minimum of 6,000, which is inclusive of amounts representinginterest and share of remaining profits. The balance of the profits shall be distributed to A,B,C and Din the ratio of 3;3;2;2. What amount must be earned by the partnership, before any charge for interestand salaries so that A may receive an aggregate of 12,500 including interest, salary and share ofprofits? a. 16,667b. 30,000c. 30,667d. 32,333Ceradoy, Manongsong and Anuran are partners sharing residual profits in the ratio of 3:2:1. Thepartnership agreement provides for 8% interest on capital and a salary for Manongsong of P80,000 peranmum. Profit for 2019 was P840,000 and the year end balances on partner’s capital accounts are asfollows: Ceradoy, P2000,000; Manongsong, P150,000 and Anuran, P120,000. What was Anuran’s shareof residual profits for 2019?a. P120,400b. P126,670c. P130,000d. P140,000On April 1, 2020, Lana, Brent and Marie formed LBM Partnership with original contributions of P400,000, P100,000 and P500,000, respectively. The articles of co-partnership provides that profit or loss shall be distributed under the following terms: • Lana, Brent and Marie shall be entitiled to monthly salaries of P1,000, P2,000 and P3,000 each respectively. • 10% return on the original capital contribution. • As managing partner, Brent shall receive bonus equal to 20% of net income after salaries and interest but before bonus. • The remainder shall be distributed on the basis of original capital ratio. During the year, the partners regularly withdraw 1⁄4 of their monthly salary. The December 31, 2020 statement of financial position of LBM Partnership shows that the capital balance of Lana is P531,080. What is the share of Brent in the partnership net income? A. 108,038.75 B. 106,070 C. 105,820 D. 103,195
- A and B formed a partnership on February 28, 2022 by contributing P430,000 and P570,000, respectively. The operations of the partnership for 2022 resulted to a profit of P375,000. Partners A and B agreed to the following allocation scheme: a. Weekly salary allowance of P1,000 is to be given to Partner A; b. 5% interest is to be credited to the partners; c. Bonus of 10% based on profit after salaries and interest to B. d. Residual income is to be allocated equally. How should the profit be allocated to A and B, respectively?Energetic and Faithful decided to form a partnership on June 1, 2021 by investing P100,000 and P150,000 respectively. They agreed that profits are to be divided as follows: Partners are to receive a 10% interest on beginning capital. Each partner is to receive an annual salary of P24,000. Energetic, the managing partner, is to receive a bonus equivalent to 10% of the net income after interest, salaries and bonus. The remaining profit is to be divided equally. Energetic invested P50,000 on August 1 and withdrew cash amounting to P10,000 on December 1. Faithful invested P15,000 on September 1 and withdrew cash amounting to 5,000 in November 1. During the year, the partnership had a net income of P80,000. How much is the ending capital of Energetic and Faithful?AA, BB and CC formed a partnership on January 1, 2022. Their capital balances before share in profit or loss on December 31 were P300,000, P400,000 and P500,000, respectively. The partnership agreement provides for the following manner of distributing profits: Monthly salaries for AA, BB and CC of P4,000, P3,000 and P2,000, respectively 12% interest based on the weighted average capital Residual profit to AA, BB and CC in the ratio of 2:4:4, respectively The partnership profit for the year 2022 amounted to P350,000. During the year, AA contributed additional capital of P60,000 on July 1 while BB contributed P40,000 on March 30. AA and BB made permanent withdrawals of capital on October 1 of P2,000 each while CC withdrew P36,000 on October 31. How much is the ending capital of BB as of December 31, 2022?
- On April 1, 2020, Lana, Brent and Marie formed LBM Partnership with original contributions ofP400,000, P100,000 and P500,000, respectively. The articles of co-partnership provides that profit orloss shall be distributed under the following terms:• Lana, Brent and Marie shall be entitiled to monthly salaries of P1,000, P2,000 and P3,000 eachrespectively.• 10% return on the original capital contribution.• As managing partner, Brent shall receive bonus equal to 20% of net income after salaries andinterest but before bonus.• The remainder shall be distributed on the basis of original capital ratio.During the year, the partners regularly withdraw 1⁄4 of their monthly salary. The December 31, 2020statement of financial position of LBM Partnership shows that the capital balance of Lana is P531,080.What is the share of Brent in the partnership net income?A. 108,038.75 C. 105,820B. 106,070 D. 103,195AA, BB and CC formed a partnership on January 1, 2022. Their capital balances before share in profit or loss on December 31 were P300,000, P400,000 and P500,000, respectively. The partnership agreement provides for the following manner of distributing profits: Monthly salaries for AA, BB and CC of P4,00O, P3,000 and P2,000, respectively • 12% interest based on the weighted average capital Residual profit to AA, BB and CC in the ratio of 2:4:4, respectively The partnership profit for the year 2022 amounted to P350,000. During the year, AA contributed additional capital of P60,000 on July 1 while BB contributed P40,000 on March 30. AA and BB made permanent withdrawals capital on October 1 of P2,000 each while CC withdrew P36,000 on October 31. How much is the share of AA in the partnership net income?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.