4. A and B formed a partnership. The partnership agreement stipulates the following:• Monthly salaries of P6,000 for A and P2,000 for B.• 20% bonus to A, after deductions for salary, interest, and bonus.10% interest on the weighted average capital of B.Any remaining amount is shared equally.The partnership's records show the following:RevenuesExpenses (including salary, interest, and bonus)Profit150,000(120,000)30,000n this messageose of the indiwender and may notv reflect the viewsf Philippine Cultural CollegePage | 2The movements in B's capital account are as follows:В. Сарital60,000beg.Aug. 1 withdrawal 30,000| 20,000Mar. 31 additional investmentOct. 1 additional investmentDec. 31 additional investment40,00010,000100,00end.How much is the share of B in the partnership profit?a. 93,000b. 52,250с. 46,250d. 45,000

Partnership is a firm with two or more partners carrying the business together and sharing the…

4. A and B formed a partnership. The partnership agreement stipulates the following: Monthly salaries of P6,000 for A and P2,000 for B. • 20% bonus to A, after deductions for salary, interest, and bonus. • 10% interest on the weighted average capital of B. Any remaining amount is shared equally. The partnership's records show the following: Revenues Expenses (including salary, interest, and bonus) Profit 150,000 _(120,000) 30,000 this message l sender and may he vie College Page | 2 The movements in B's capital account are as follows: В. Сарital 60,000 beg. Aug. 1 withdrawal 30,000 | 20,000 Mar. 31 additional investment 40,000 Oct. 1 additional investment 10,000 Dec. 31 additional investment 100,00 end. How much is the share of B in the partnership profit? a. 93,000 b. 52,250 с. 46,250 d. 45,000

4. A and B formed a partnership. The partnership agreement stipulates the following: Monthly salaries of P6,000 for A and P2,000 for B. • 20% bonus to A, after deductions for salary, interest, and bonus. • 10% interest on the weighted average capital of B. Any remaining amount is shared equally. The partnership's records show the following: Revenues Expenses (including salary, interest, and bonus) Profit 150,000 _(120,000) 30,000 this message l sender and may he vie College Page | 2 The movements in B's capital account are as follows: В. Сарital 60,000 beg. Aug. 1 withdrawal 30,000 | 20,000 Mar. 31 additional investment 40,000 Oct. 1 additional investment 10,000 Dec. 31 additional investment 100,00 end. How much is the share of B in the partnership profit? a. 93,000 b. 52,250 с. 46,250 d. 45,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have capital balances of $45,000 each. Prepare a schedule showing how the bonus should be divided if Ashanti joins the partnership with a $60,000 investment. The partners new agreement will share profit and loss in a 1:3 ratio.
The partnership of Chase and Chloe shares profits and losses in a 70:30 ratio respectively after Chloe receives a $10,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $ 30,000 B. $ 6,000 C. ($10,000)
A and B formed a partnership. The partnership agreement stipulates the following: Monthly salaries of P6,000 for A and P2,000 for B. • 20% bonus to A, after deductions for salary, interest, and bonus. 10% interest on the weighted average capital of B. Any remaining amount is shared equally. The partnership's records show the following: Revenues 150,000 (120,000) 30,000 Expenses (including salary, interest, and bonus) Profit The movements in B's capital account are as follows: B. Capital 60,000 beg. Aug. 1 withdrawal 30,000 20,000 Mar. 31 additional investment 40,000 Oct. 1 additional investment 10,000 Dec. 31 additional investment end. 100,000 How much is the share of B in the partnership profit?
4. A and B formed a partnership. The partnership agreement stipulates the following: Annual salary allowances of P10,000 for A and P40,000 for В. Bonus to A of 10% of the profit after partner's salaries but before bonus and interest. • Interest of 12% on the beginning capital balance of B. The partners share profits and losses on a 60:40 ratio. Juring the period the partnership earned profit of P200,000 before- eduction for salaries. B's beginning capital balance was P60,000. low much is the share of A in the profit? a. 101,680 b. 98,320 с. 110,820 d. 96,720
A and B formed a partnership. The partnership agreement stipulates the following: • Annual salary allowances of P80,000 for A and P40,000 for B. • The partners share in profits and losses equally. The partnership earned profit of P100,000. How much is the share of B? 30,000 48,000 52,000 70,000
2. A and B's partnership agreement provided for annual salary allowances of P160,000 for and P80,000 for B. Profits are shared equally, while losses on a 70;30 ratio. The partnership earned profit of P200,000. Requirement: Compute for the respective shares of the partners in the profit.
3. A and B formed a partnership. The partnership agreement stipulates the following: Annual salary allowances of P10,000 for A and P40,000 for В. Bonus to A of 10% of the profit after partner's salaries but before bonus. • The partners share profits and losses on a 60:40 ratio. During the period the partnership incurred a loss of P20,000 hefore deduction for salaries. By what amount did B's capital account change? a. Increased by P12,000 b. Decreased by P12,000 c. Increased by P32,000 d. Decreased by P32,000
6. A, B and C formed a partnership. The partnership agreement stipulates the following: Annual salary allowances of P100,000 for A and P20,000 for B. 10% interest on the beginning capital balance of C. The partners share in profits and losses on a 40:40:20 ratio. The partnership earned profit of P500,000. C's capital account had a beginning balance of P300,000. The difference between the amounts received by A and B is a. 160,000. c. 80,000. d. 60,000. b. 240,000.
The following are the partnership agreement between partners Baby Love & Honey Sweet for their partnership’s profit distribution:A. Each partners shall be entitled for an annual salary of P50,000 each.B. 15% Bonus of partnership profits after salaries to Honey Sweet being a managing partner.C. 20% interest is given to both partners based on average capital ratio.D. Residual profit and loss shall be distributed on the ratio 2:2The ledgers of their capital balances are shown below: Baby Love Debit: July 1. P20,000 Credit: Jan 1. P80,000 Oct 1. P40,000 Honey Sweet Debit: Oct 1. P10,000 Credit: Jan 1. P120,000 May 1. 30,000 The partnership profit for the year is P150,000 before distribution to partners Required: 1. Prepare a Schedule for Profit Distribution.2. Journal entry to record the distribution of profit to partners.
3. A and B formed a partnership. The partnership agreement stipulates the following: Monthly salary allowances of P10,000 for A and P4,000 for B. The salaries are recognized as expenses. The partners share equally in profits and losses. The partnership reported profit for the year of P360,000. How much is the total share of A, inclusive of salary allowances? а. 300,000 b. 228,000 с. 148,000 d. 128,000
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?