12. Partners Maramba and Pasac have a profit and loss agreement with thefollowing provisions: salaries of P30,000 and P45,000 for Maramba andPasac, respectively; a bonus to Maramba of 12% of net income after salariesand bonus; and interest of 10% on average capital balances of P50,000 andP65.000 for Maramba and Pasac, respectively. One-fourth of any remainingprofits are allocated to Maramba and the balance to Pasac. If thepartnership had net income of P108,600, how much should be allocated toPartner Maramba?a. P43,225b. P43,816C. P47,850d. P65,37513. In the preceding problem, how much should be allocated to Pasac?a. P43,225b. P43,816C. P47,850d. P65,375

Computation of 12% Bonus to Maramba Let Assume Net Income After Bonus and Salaries = X Therefore…

Answered: 12. Partners Maramba and Pasac have a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Partners A, B, and C have a profit and loss agreement with the following provisions: salaries of $13,000 and $12,000 for A and C, respectively; a bonus to C of 10% of net income after bonus; and interest of 6% on ending capital in excess of $100,000. Ending capital balance is $80,000 for A, $150,000 for B, and $110,000 for C. Remaining profit/loss is allocated to A, B, C in the ratio of 2:1:1. If the partnership had net income of $22,000, how much should be allocated to Partner C? a. 12,450 b. 14,600 c. 8,700 d. 850
The net loss of a XYZ partnership for the year is P100,000. Partner X is to be given a salary of 5,000 per month. The capital balances of X, Y and Z are P 150,000, P 160,000, and P 140,000, respectively. Interest in the capital balance will be given at a rate of 15%. Bonus of 10% after salaries and interest is given to partner Z. Remaining profit is to be distributed equally to the partners. In the process of journalizing the distribution of the loss, what will be done to the capital of X and in what amount? A. Credited by P 14,250 B. Debited by P 6,666 C. Credited by P 6,666 D. Debited by P 14,250
30 - 2019 profit of Alper Sinan and Partners Collective is 100,000 TL. The company was established with a capital of 200.000 TL. The capital shares of the partners of the company are as follows:Joint Capital ShareAlper Sinan 50,000Turker Sinan 70.000Ilker Sinan 80.000According to the notarized contract of the company, the profit distribution will be made in proportion to the capital shares of the partners.What should be the amount that Alper Sinan should receive from the profit?A) NoneB) 40,000C) 55,000D) 35,000E) 22,250
Required: Prepare a statement of profit distribution for each of the following independentprofit-sharing agreements:a. In the average capital ratio.b. Interest on average capital at 9 percent, salaries of P60,000 to Robin and Hood,respectively, a bonus to Robin of 25 percent of net income after interest and salaries butbefore the bonus, and the balance equally.c. Interest at 10 percent on the amount by which the ending capital balance exceeds thebeginning balance and the balance equally.d. Salaries of P80,000 and P120,000 to Robin and Hood, respectively, a bonus to Robin of25 percent of net income after salaries and the bonus, and the balance equally.
AB Partnership’s operation for the year 2022 resulted in a profit of P180,000. Their profit sharing agreement provided the following:a. Salaries of P15,000 and P25,000 is to be given to A and B respectively;b. 15% of profit after salaries but before bonus is to be given to Partner B;c. The balance is to be divided using the 3:2 ratio, respectively.How much profit is to be allocated to B?
AB Partnership's operation for the year 2022 resulted in a profit of P240,000. Their profit sharing agreement provided the following: a. Salaries of P5,000 and P15,000 is to be given to A and B respectively; fres A fr free b. 10% of profit after salaries and bonus is to be given to Partner B; c. The balance is to be divided using the 7:3 ratio, respectively. How much profit is to be allocated to B?
Partners A, B and C are contemplating using the following profit distribution plan: Salary is to be given to A in the amount of P60,000, with the remainder in an equal rates to all partners. A is guaranteed a minimum profit share of P100,000. a) Profit for the first year is P240,000 b) Profit for the second year is P150,000. Compute for the profit share of partners B and C in both years.
LL, MM and PP are partners with capitals of P40,000; P25,000 and P15,000 respectively. Thepartnership agreement provides that each partner shall be allowed 5% interest on his capital, that LLshall be allowed an annual salary of P8,500, and that MM shall be entitled to a minimum of P14,000per annum including amounts allowed as interest on capital and as share of profit. Profit after interestand salary allowances is to be divided between LL, MM and PP as 5:3:2 respectively. What amountmust be earned by the partnership during 2021 before charges for interest or salary if LL is to receivean aggregate of P20,000 to include interest, salary, and share of profit? a. P38,000b. P50,000c. P38,550d. P35,880
21. The capital balances in BNM Partnership are: BBB, capital P600,000; NNN, capital 500,000and MMM, capital 400,000 and income ratio is 5:3:2, respectively. The BNM Partnership is formed by admitting FFF to the company with cash investment of P600,000 for a 25% interest in capital. What is the amount of bonus to be credited to MMM capital in admitting FFF? A. 100,000B. 75,000C. 37,500D. 15,000
17 AA and BB have been partners for a decade. As of January 1, 2022, the capital balances of AA and BB are: AA, capital P55,000 BB, capital 75,000 Partnership agreement provides for the following manner of profit distribution: Annual salaries of P80,000 and P100,000 will be provided to AA and BB, respectively. A bonus of 20% based on net income will be given to AA 30% of the remaining profit or loss is distributed to AA with the balance provided to BB In 2022, the partnership reported net income of P250,000. On January 1, 2023, CC was admitted as a partner by investing P70,000 for a 25% interest in the capital of the partnership. The partners agreed that the plant assets of the partnership were to be increased by P30,000. The profit and loss sharing agreement was revised to: Annual salaries of P80,000, P100,000 and P70,000 will be provided to AA, BB and CC, respectively. A bonus of 20% based on net income will be given to AA and a 5% bonus based on net income…
Partners MM and LL have profit and loss agreement with the following provisions: salaries of P30,000 and P45,000 for MM and LL, respectively; a bonus to MM of 10% net income after salaries and bonus; and interest of 10% on average capital balances of P20,000 and P35,000 for MM and LL, respectively. One-third of any remaining profits will be allocated to MM and the balance to LL. If the partnership had a net income of P104,500, how much should be allocated to MM, assuming the provisions of the profit and loss agreement are ranked by order of priority, starting with salaries?
The partnership agreement of X, Y, and Z stipulates the following:a. Partners Y and Z shall receive annual salaries of P23,000 and P12,000, respectively.b. A bonus of 15% of profit after salaries but before deduction of bonus shall be given to Partner X, themanaging partner.c. Each partner shall receive 11% interest on average capital investments.d. Any remaining profit or loss shall be shared as follows: 30% to X, and 35% each to Y and Z.The average capital investments of the partners during the year are as follows: X – P125,000; Y – P78,000;and Z – P101,000.Case # 1: The partnership earns profit of P125,000.Case # 2: The partnership earns profit of P9,000.Case # 3: The partnership incurs a loss of P19,000.For items 1-3, refer to Case #11. How much is X's share in the profit/loss?a. P 40,168b. P 40,169c. P 60,170d. P 60,1712. How much is Y's share in the profit/loss?a. P 46,652b. P 46,651c. P 56,653d. P 56,6543. How much is Z's share in the profit/loss?a. P 38,182b. P 38,181c. P…

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