Ruvi and Patrick are partners in a merchandising business. During 2021, they withdrew their salary allowances of P34,000 and P59,000, respectively. Remaining profit or loss are shared in the ratio of 3:2 by Ruvi and Patrick. The income summary account before any profit allocation has a credit balance of 180,000. The partners' capital accounts show the following: Ruvi Patrick Beginning balance Additional investments 85,000 40,000 67,000 43,000 Withdrawal other than salary (35,000) 90,000 (20,000) 90,000 allowance Ending balance 5. What is Patrick's equity balance at December 31, 2021 after dividing the profit?
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Question: What is Patrick's equity balance at December 31, 2021 after dividing the profit?
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- On the December 31, 2020, the Statement of Financial Position of LOVE Partnership shows the following data with profit or loss sharing of 5:3:2.CashP10,000,000Noncash Asset40,000,000Total LiabilitiesP20,000,000Ona10,000,000Vina15,000,000Ena5,000,000On January 01, 2021, Lina is admitted to the new partnership named LOVE by investing P20,000,000 for 50% capital interest in the new partnership. What is the new capital balance of Ena after Lina’s admission in LOVE Partnership?Juan and Pedro’s partnership agreement shows that they will receive a salary of P 150,000 and P 100,000, respectively. Should there be a remainder, such will be divided based on their average capital balances. Below shows information in their respective capital balances:Juan, capital ending balance – P 3,000,000Debits: June 1 - P 500,000Credits: March 30 – P 1,000,000Credits: October 30 – P 500,000 Pedro, capital ending capital balance – P 4,500,000Credits: May 1 – P 1,000,000Credits: August 31 – P 1,000,000Income for the year amounted to P 300,000. How much profit will be distributed to Juan?Amber and Berta share profits and losses equally after a 10% interest on their average capital balances. Consider additional capital contributions and permanent withdrawals as made at the end of the month. The total net income after tax for 2019 is P320,000. Direction: Give the entries to record the distribution based on the following two independent cases: a.) Partners' drawings are not used in determining the average capital balances. b) All changes in capital and drawing should be considered in determining the average capital balances.
- Juan and Pedro’s partnership agreement shows that they will receive a salary of P150,000 and P100,000, respectively. Should there be a remainder, such will be divided based on their average capital balances. Below shows information in their respective capital balances:Juan, capital ending balance – P 3,000,000Debits: June 1 - P 500,000Credits: March 30 – P 1,000,000Credits: October 30 – P 500,000 Pedro, capital ending capital balance – P 4,500,000Credits: May 1 – P 1,000,000Credits: August 31 – P 1,000,000Income for the year amounted to P 300,000. How much profit will be distributed to Juan?Nadine and Liza formed a partnership on January 1, 2019 below the details of your capital accounts for 2019: On the saviour the partnership gathered a profit of 200,000. Determine the profit ratio and the share on profits for nadine and liza on the following agreements: If agreement based on capital contributions:Nadine's Profit ratio?Nadine's Share on profit?Liza's Profit ratio?Liza's Share on profit? If agreement based on average capital:Nadine's Profit ratio?Nadine's Share on profit?Liza's Profit ratio?Liza's Share on profit?3. Cabello and Dacanay are partners in a trading company. During 2020, they withdrew their salary allowances of P250,000 and P375,000, respectively. Profits and losses are shared in the ratio of 3:2. The income summary account before any profit allocation has a credit balance of P750,000. The partners' capital account show the following: Cabello Dacanay P750,000 P500,000 Beginning balances Additional investments 250,000 Withdrawals other than salary allowances (250,000) (125,000) 125,000 What are the capital balances of the partners for the year 2020 after closing income summary and withdrawals accounts? Cabello a. P700,000 b. P450,000 Dacanay P675,000 P300,000 P425,000 c. P575,000 d. P950,000 P1,050,000
- 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?During the 2020 income year, the Timms Brothers Partnership recorded a net income of $300,000. The business also recorded a net loss of $220,000 during the 2019 income year. If all 4 brothers share equally in partnership profits and losses, what is the income to be distributed to each partner in the 2020 financial year? Select one: a. $75,000 b. $130,000 c. $20,000 d. $55,000Mazin and Marwan commenced business as partners on Jan 1, 2020. They contributed RO 60,000, RO 40,000 as their share of capital. The partners decided to share their profits in the ratio of 4:2. Interest on capital was to be provided @ 7.5% p.a. The profits of the firm after providing salary and interest on capital were RO 40,000. Calculate Interest on Capital of Mr Mazin? Ⓒa. 4500 b. 13333.33 OC. 2800 c. Ⓒd. 26666.66
- On October 1, 2021, Pamu and Kevin formed a partnership and agreed to share profits and lossesin the ratio of 3:7, respectively. Balances of capital accounts should be in accordance with the profitand loss percentage on the date of partnership formation. Pamu contributed a parcel of land that costher P200,000. Kevin contributed P300,000 cash. The land has a quoted price of P360,000 on October1, 2021. What amount should be recorded in Pamu’s capital account upon formation of thepartnership assuming the use of bonus method? a. P150,000b. P198,000c. P200,000d. P360,000On January 1, 2022, A and B decided to form a partnership by contributing their respective assets and equities subject to adjustments. Cash Accounts Receivable Building A 50,000 20,000 520,000 B 40,000 10,000 30,000 Computer Equipment An Allowance for Doubtful Accounts of 3% of accounts receivable is set up for each partner, and a mortgage of P30,000 is assumed from building contribution. Compute the adjusted capital account of A after the formation.Saud, Salim and Sulaimon started a partnership firm on January 1, 2019. They contributed RO. 50,000, RO. 40,000 and RO. 30,000 respectively as their capitals and decided to share profits in the ratio of 3:2:1. The partnership deed provided that Saud is to be paid salary of RO. 12000 p.a. and Salim commission of RO. 2,500 every 6 months. It also provided that interest on capital be allowed @ 6% p.a. The drawings for the year were: Saud RO. 6,000, Salim RO. 4,000 and Sulaimon RO. 2,000. Interest on drawings was RO. 270 for Saud, RO.180 for Salim and RO. 90 for Sulaimon. The net amount of profit as per the profit and loss account for the year ended 2019 was RO. 35,660. Prepare the necessary accounting entries, the profit and loss appropriation account and the partners' capital accounts Identify which one of the following accounting entry for payment of salary to partner Saud at the end of the year: a. Dr: Saud's salary account RO 1000Cr: Saud's capital account RO 1000 b. Dr: Saud's…