3.2 Partners Pedro and Gil divide profits and losses on the basis of their1 30,000 Sept. 4. 6,750 Jan. 1 33,000REQUIRED: Show how the net profit will be divided if the withdrawalsChapter 3Division of Profitsweighted average capital. Their capital accounts on December 31200B are shown below.Pedro CapitalGil CapitalMar. 9 5,000Jan.Apr. 9 15,000Oct. 26 8,000 July 5 10,000Sept. 22 10,000The net profit for 200B was P 59,200. The partners have agreed thatchanges in capital during the first half of the month are considered aseffective the beginning of the month and changes during the secondhalf of the month are considered effective as of the beginning of thefollowing month.REQUIRED: Show how the net profit will be distributed to the partners.3.3 Bi, Ni, and Tin formed a partnership and agreed to maintain anaverage investment of P 100,000, P 50,000 and P 50,000,respectively. Interest on any capital excess or deficiency is to becomputed at 10%. After the interest allowance, the partners are toshare the balance in the ratio of 5:3:2 for Bi, Ni, and Tin,respectively. The actual amounts invested during the year were: Bi, P120,000; Ni, P 60,000; and Tin, P 35,000. Net profit was P 12,500.REQUIRED: How should the net income be distributed?3.4 Vir and Housen are partners sharing profits in the ratio of 3:2. As pertheir agreement, each partner is allowed to withdraw P 30,000annually. Both partners withdrew this amount during 200C.The hetprofit in 200C was P 120,000.REQUIRED: Show how the net profit will be divided if the withdrawarare considered as:a. Partners' drawingsb. Partners' salaries

3.2 Partners Pedro and Gil divide profits and losses on the basis of their 1 30,000 Sept. 4. 6,750 Jan. 1 33,000 weighted average capital. Their capital accounts on December 31 200B are shown below. Pedro Capital Gil Capital Mar. 9 5,000 Jan. Oct. 26 8,000 July 5 10,000 Apr. 9 15,000 Sept. 22 10,000 The net profit for 200B was P 59,200. The partners have agreed that changes in capital during the first half of the month are considered as effective the beginning of the month and changes during the second half of the month are considered effective as of the beginning of the following month. REQUIRED: Show how the net profit will be distributed to the partners.

3.2 Partners Pedro and Gil divide profits and losses on the basis of their 1 30,000 Sept. 4. 6,750 Jan. 1 33,000 weighted average capital. Their capital accounts on December 31 200B are shown below. Pedro Capital Gil Capital Mar. 9 5,000 Jan. Oct. 26 8,000 July 5 10,000 Apr. 9 15,000 Sept. 22 10,000 The net profit for 200B was P 59,200. The partners have agreed that changes in capital during the first half of the month are considered as effective the beginning of the month and changes during the second half of the month are considered effective as of the beginning of the following month. REQUIRED: Show how the net profit will be distributed to the partners.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter2: Analysis Of Financial Statements

Section: Chapter Questions

Problem 18PROB

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