1, 2019, Aglugob was admitted into the partnership with a 10% share in profits, T old partners continue to participate in profits in their original ratio. For 2019, the profit of the partnership was reported as P12,500. 'However, it was discovered that the following items were omitted in the firm's books: 2018 2019 Unrecorded at year-end P800 Prepaid Expense Accrued Expense P600 700 Unearned Income 500 Accrued Income The new profit and loss ratio for Guillermo, and the share of partner Cumagun in the 2019 profit would be a. 30% and P2,214. C. 27% and P2,286. b. 27% and P2,214. d. 30% and P2,286.
1, 2019, Aglugob was admitted into the partnership with a 10% share in profits, T old partners continue to participate in profits in their original ratio. For 2019, the profit of the partnership was reported as P12,500. 'However, it was discovered that the following items were omitted in the firm's books: 2018 2019 Unrecorded at year-end P800 Prepaid Expense Accrued Expense P600 700 Unearned Income 500 Accrued Income The new profit and loss ratio for Guillermo, and the share of partner Cumagun in the 2019 profit would be a. 30% and P2,214. C. 27% and P2,286. b. 27% and P2,214. d. 30% and P2,286.
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 4BCRQ
Related questions
Question
What is the answer in nunbers 18, and 19?
Transcribed Image Text:For 2019, the profit of the partnership was reported as P12,500. However, it was
1, 2019, Aglugob was admitted into the partnership with a 10% share in profits, T
old partners continue to participate in profits in their original ratio.
discovered that the following items were omitted in the firm's books:
2019
For 2019, the profit of the partnership was reported as P12,500. However, it w-an
2018
Unrecorded at year-end
P800
Prepaid Expense
Accrued Expense
P600
700
Unearned Income
500
Accrued Income
The new profit and loss ratio for Guillermo, and the share of partner Cumagun in the
2019 profit would be
C.
27% and P2,286.
30% and P2,214.
а.
27% and P2,214.
b.
d.
30% and P2,286.
19. Perez, Yuzon and Mercado formed a partnership on Jan. 1, 2019 with the following
initial investments:
Perez
P100,000
Yuzon
150,000
Mercado
225,000
The partnership agreement states that profits and losses are to be shared equally by
the partners after consideration is made for the following:
Salaries allowed to partners: P60,000 for Perez, P48,000 for Yuzon and
P36,000 for Mercado.
Average partner's capital balances during the year shall be allowed 10%
interest.
Additional information:
On June 30, 2019, Perez invested an additional P60,000.
Mercado withdrew P70,000 from the partnership on Sept. 30, 2019.
Share on the remaining partnership profits was P5,000 for each partner.
The total partnership capital on Dec. 31, 2019 was
а.
P405,000.
P672,750.
С.
b.
P671,500.
d.
P480,000.
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