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- Problem 3. The A,B,C partnership agreement specifies that partnership net income be allocated as follows: A B C Salary allowance P30,000 P10,000 P40,000Interest on ave. capital balance 10% 10% 10% Remainder 40% 40% 20% The average capital balances for the current year were P50,000 for A, P30,000 for B, and P20,000 FOR c. Assuming a current year net income of P150,000, what amount should be allocated to each partner? Assuming a current year net income of P50,000, what amount should be allocated to each partner?Problem #3 SCORE: PROFESSOR Rules for the Distribution of Profits or Losses Elisa Diar and Ma. Concepcion Manalo formed a partnership, investing P330,000 and P110,000, respectively. Determine the partners' participation in the 2019 profit of P420,000 under each of the following independent assumptions: E. Interest at the rate of 8% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of P50,000 and P70,000, respectively, and the balance to be divided equally e. Allowance of interest at the rate of 8% on inal investments, salary allowances P50,000 and P70,000, respectively, and the remainder to be divided equallyProblem #3 SCORE: PROFESSOR Rules for the Distribution of Profits or Losses Elisa Diar and Ma. Concepcion Manalo formed a partnership, investing P330,000 and P110,000, respectively. Determine the partners' participation in the 2019 profit of P420,000 under each of the following independent assumptions: a No agreement concerning division of profit. b. Divided in the ratio of original capital investment. E. Interest at the rate of 8% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of P50,000 and P70,000, respectively, and the balance to be divided equally e. Allowance of interest at the rate of 8% on inal investments, salary allowances P50,000 and P70,000, respectively, and the remainder to be divided equally
- PROBLEM 12. X, Y and Z are partners with average capital balances during 2020 of P120,000, P60,000 and P40,000 respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of P30,000 to X and P20,000 to Y, the residual profit or loss is divided equally. In 2020, the partnership sustained a net loss of P33,000 before interest and salaries to partners. 24) By what amount should X’s capital account change?Problem 1: Interest on capital and bonus A and B formed a partnership. The partnership agreement stipulate the following: a. Monthly salary of P5,000 for A. b. 20% bonus to A, before deductions for salary, interest, and bonus. c. 10% interest in the weighted average capital of B. d. Salary, bonus and interest are considered partnership expenses. The result of operations show the following: Revenues P150,000 Expenses (including salary, interest and bonus) (120,000) Profit P30,000 The weighted average capital balance of B's capital account is P100,000 Required: How much is the bonus of A?5. Distribution of Income for Partnerships Julia Green invested $125,000 and Michael Spencer invested $ 80,000 in forming a partnership company and the information to calculate their 2021 net income is as follows: a. Salary Allowances: Julia=3,000 monthly, Michael= 5,000 monthly b. Interest Allowance: 10% on investment c. Any remaining balance will be allocated on the investment ratio. d. 2021 net income- $ 300,000 Required 1. Calculate the 2021 income for each partner 2. Journal entry
- Exercise 3-7. Distribution of Net Loss to partners Carmela and Ferdinand formed a partnership on January respectively. The partnership reported a net loss of P80,000. 1, 2023, with initial investments of P300,000 and P500,000, The partnership agreement provides that profit or loss shall be distributed accordingly: • Monthly salary of P10,000 and P5,000 respectively for Carmela and Ferdinand, . 10% interest on partners' original capital. . 20% bonus to Carmela based on net income before interest, and salary. •The remainder is shared in the ratio of 3:2 respectively. Required: Determine the share of Carmela and Ferdinand in the net loss.Exercise 3 -7 1. Martin and Isidore form a partnership with investments of P 1,000,000 and P 500,000 respectively. Compute their share in the net income of P210,000 for six months of the partnership's operation under the following agreement: a. 10% interest is allowed on partners' original investments. b. Allowance of annual salary of P120,000 to Martin and P144,000 to Isidore. c. Balance 2:1 respectively. 2. With the same information in number 1, assuming the partnership incurred a loss of P72,000 for the year instead of a net income of P210,000 for six months.Exercise 3-8. Distribution of Net Income to partners On March 1, 2023 Glenda and Harry formed GH Partnership with initial investment of P800,000 and P1,200,000, respectively. Glenda is appointed as the managing partner. The articles of co-partnership provides that profit or loss shall be distributed accordingly: 10% interest on original capital contribution ratio. Monthly salary of P10,000 and P5,000 respectively for Glenda and Harry. . Glenda shall be entitled to bonus equivalent to 10% of net income after interest, and salary. The remainder shall be distributed in ratio of 4:6 for Glenda and Harry, respectively. ● For the year ended December 31, 2023, the partnership reported net income of P1,000,000. Required: Compute for the share in net income of Glenda for the year ended December 31, 2023.
- Problem 9-21 (Algo) (LO 9-6) The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence: . Jones, the managing partner, receives a bonus equal to 15 percent of the business's profit. Each partner receives 11 percent interest on average capital investment. ⚫ Any residual profit or loss is divided equally. The average capital investments for 2024 were as follows: $ 85,000 170,000 255,000 Jones King Lane Required: The partnership earned $42,000 net income for 2024. Prepare a schedule showing how the 2024 net income should be allocated to the partners. Note: Loss amounts should be indicated with a minus sign. Net income Bonus Interest Remainder to allocate Total allocation Jones King Lane Total 0 0 $ 0 0 $ 0 $ 0 $ 0 $ 0Problem 14-11 (Algo) (LO 14-4, 14-5, 14-6) A partnership begins its first year of operations with the following capital balances: Allegan, Capital Berrien, Capital Kent, Capital $82,000 72,000 82,000 According to the articles of partnership, all profits will be assigned as follows: Allegan will be awarded an annual salary of $18,000 with $9.000 assigned to Kent • The partners will be attributed Interest equal to 10 percent of the capital balance as of the first day of the year. • The remainder will be assigned on a 5.23 basis, respectively. . Each partner is allowed to withdraw up to $5,000 per year The net loss for the first year of operations is $30,000, and net Income for the subsequent year is $35,000. Each partner withdraws the maximum amount from the business each period. Required: Prepare schedules that compute the balances in each partner's capital account at the end of each of the first two years of partnership operations. Ending apital Ending Capital Balance Year Balance Year…Homework Activity 1 A, B and C are in Partnership sharing profits and losses in the ratio of 2:1:1. During the year ending 31st Dec 2019, the business made a profit of RO 64,000 before providing Interest on capital : A 2,000, B 1500, C 1000 Interest on drawings: A 200, B 150, C 100 Salary to Partners A 500 B 700 C 600 Commission to Partners A 200 B 300 C 400 Prepare a profit and loss appropriation account to show the distribution of profit among the partners.