15. Ravelo and Febrero are partners agreeing to allow monthly salaries of P6,000 and P5,000, respectively; 6% interest on the capital investment at the beginning of the year of P300,000 and P230,000, respectively; and the balance equally. The first year registered a profit of P100,000. The partners' share should be Ravelo, P58,100; Febrero, P41,900. b. Ravelo, P56,600; Febrero, P43,400. C. Ravelo, P54,500; Febrero, P45,500. d. Ravelo, P50,000; Febrero, P50,000. a.

15. Ravelo and Febrero are partners agreeing to allow monthly salaries of P6,000 and P5,000, respectively; 6% interest on the capital investment at the beginning of the year of P300,000 and P230,000, respectively; and the balance equally. The first year registered a profit of P100,000. The partners' share should be Ravelo, P58,100; Febrero, P41,900. b. Ravelo, P56,600; Febrero, P43,400. C. Ravelo, P54,500; Febrero, P45,500. d. Ravelo, P50,000; Febrero, P50,000. a.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...

See similar textbooks

Similar questions

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.
Se and Xy are partners agreeing to allow monthly salaries of P6,000 and P5,000, respectively; 6% interest on the capital investment at the beginning of the year of P300,000 and P230,000, respectively; and the balance equally. The first year registered a profit P100,000. How much should be the share of each partner in the Company's profit?
Babes and Honey, on January 1, 2022, have respective capital balances of P300,000 and P500,000. Babes invested an additional P300,000 on June 30, while Honey invested an additional P600,000 on November 1. Babes had a capital withdrawal of P200,000 on September 30. The partners allow respective monthly salaries of P5,000 and P6,000, credit of 15% interest on average capital balances, and share any residual earnings equally.If the net income is P250,000 for 2022, Honey’s distributive share would be:
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
D and J are partners agreeing to allow an interest of 6% on their capital investment at the beginning of the year of 300,000 and P230,000 each, respectively. And a monthly salary of 6,000 to D and J would be given an appropriate salary so that D will receive P58,100 at the end of the year. Any remaining balance will be shared by the partners equally. The first year of operation yielded a net income of 100,000. What is the total salary given for the year?
Partners De Guzman and Tugade receive a salary allowance of P30,000 and P70,000, respectively, and share the remainder equally. If the company earned P40,000 during the period, what is the effect on Tugade’s capital? a.P30,000 decrease b.P40,000 increasec. c.P50,000 increased. d.P90,000 increase
In addition, the partners are paid annual salaries of P600,000 and P400,000 to Benedict and Lord each respectively. The partners also withdraw P100,00 every quarter. Assuming that the partners’ return on invested capital is 20% per annum, given on average capital for the year and the balance of profits is allocated equally, the allocation of profits should be?
Singer and McMann are partners in a business. Singer's original capital was $40,000 and McMann's was $60,000. They agree to salaries of $12,000 and $18,000 for Singer and McMann, respectively, and 10% interest on original capital. If they agree to share the remaining profits and losses on a 3:2 ratio, what will McMann's share of the income be if the income for the year is $15,000?
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
In January 1, 2020, A and B have capital balances of P 200,000 and P 300,000 respectively. On July 1,2020, A invests an additional P 10,000 and B withdraws P 11,600. Profits and losses are divided as follows: - Each of the partners shall be given 3,000 monthly salary; - Interest of 12% on ending capital balances; - Bonus to B of 10% of profit after salary but before interest and bonus if profit exceeds 500,000 for the year. - Any remainder is divided in the ratio of their capital balances at the start of the year. Revenues for the year totaled P 1,000,000 and Expenses amounted 300,000 How much is B's share in net income/ net losses? A. 273,356.80 b. 263,356.80 C. 436,643.20 D. 473,356.80
On January 1, 2020, A and B have capital balances of P 200,000 and P 300,000 respectively. On July 1,2020, A invests an additional P 10,000 and B withdraws P 11,600. Profits and losses are divided as follows:- Each of the partners shall be given 3,000 monthly salary;- Interest of 12% on ending capital balances;- Bonus to B of 10% of profit after salary but before interest and bonus if profit exceeds 500,000 for the year.- Any remainder is divided in the ratio of their capital balances at the start of the year.Revenues for the year totaled P 1,000,000 and Expenses amounted to P 300,000.How much is A's share in the net income/net loss?