5. Del Mundo, Ballada and Mendoza are partners sharing profit on a 7:2:1 ratio, Burgos was admitted into the partnership with 15% share in profit on Jan. 1, 2019 The old partners continue to share profit in their original ratios. For the year 2019, the partnership showed a profit of P15,000. However, it was discovered that the following items were omitted in the firm's books: Unrecorded at year-end: 2018 2019 Accrued Expense P1,050 Accrued Income 875 Prepald Expense Unearned Income P1,400 1,225 The share of Ballada in the 2019 profit is a. P2,197.50. b. P2,637.00. c. P2,490.50. d. P3,149.75.
5. Del Mundo, Ballada and Mendoza are partners sharing profit on a 7:2:1 ratio, Burgos was admitted into the partnership with 15% share in profit on Jan. 1, 2019 The old partners continue to share profit in their original ratios. For the year 2019, the partnership showed a profit of P15,000. However, it was discovered that the following items were omitted in the firm's books: Unrecorded at year-end: 2018 2019 Accrued Expense P1,050 Accrued Income 875 Prepald Expense Unearned Income P1,400 1,225 The share of Ballada in the 2019 profit is a. P2,197.50. b. P2,637.00. c. P2,490.50. d. P3,149.75.
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 4BCRQ
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What is the answer in nunbers 5, 6,and 7?
Transcribed Image Text:5. Del Mundo, Ballada and Mendoza are partners sharing profit on a 7:2:1 ratio
Burgos was admitted into the partnership with 15% share in profit on Jan. 1, 2019
The old partners continue to share profit in their original ratios,
For the year 2019, the partnership showed a profit of P15,000. However, it was
discovered that the following items were omitted in the firm's books:
Unrecorded at year-end:
2018
2019
Accrued Expense
P1,050
Accrued Income
875
Prepaid Expense.
Unearned Income
P1,400
1,225
The share of Ballada in the 2019 profit is
a. P2,197.50.
b. P2,637.00.
c. P2,490.50.
d. P3,149.75.
6. The partnership of Ronzales, Adalem and Bio divides profits or losses in the ratio of
4:5:3. During 2019, the business earned P80,000. Bio's share of this profit is
а. Р33,334.
b. P26,667,
с. Р32,000.
d. P20,000.
7. Kwong and Morales entered into a partnership as at Mar. 1, 2019 by the invèsting
P125,000 and P75,000, respectively. They agreed that Kwong, as the managing
partner, was to receive a salary of P30,000 per year and a bonus computed at 10%
of the profit after adjustment for the salary; the balance of the profit was to be
distributed in the ratio of their original capital balances. On Dec. 31, 2019, normal
account balances were as follows:
Cash
Accounts Payable
Kwong, Capital
Morales, Capital
Kwong, Drawing
Morales, Drawing
P70,000
67,000
P 60,000
125,000
75,000
20,000
30,000
Accounts Receivable
Furniture & Fixtures
45,000
Sales Returns
5,000
196,000
Purchases
Operating Expenses
60,000
Sales
233,000
Inventories on Dec. 31, 2019 were as follows: supplies, P2,500, merchandise,
P73,000. Prepaid insurance was P950 while accrued expenses were P1,550.
Depreciation rate was 20% per year. The partners' capital balances on Dec. 31,
2019, after closing the profit and drawing accounts, were:
Kwong
P135,940
P139,540
Morales
Kwong
P139,680
Morales
P47,960
P49,860
а.
с.
P48,680
P47,670
b.
d.
P142;350
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