5.9 Bah, Lee and P 20,000, respectively. The partners agreed to the follo distribution of profits: a. 10% interest on the capital balances b. Lee is entitled to a salary of P 6,000 c. Wag is guaranteed a minimum share of P 12,000. iw Ad. Remainder is to be divided 3:3:4 for Bah, Lee and Wag, T L respectively. MEunor orit une 000,AS 9 REQUIRED: What is the minimum profit to be earned by the of R 10 00

5.9 Bah, Lee and P 20,000, respectively. The partners agreed to the follo distribution of profits: a. 10% interest on the capital balances b. Lee is entitled to a salary of P 6,000 c. Wag is guaranteed a minimum share of P 12,000. iw Ad. Remainder is to be divided 3:3:4 for Bah, Lee and Wag, T L respectively. MEunor orit une 000,AS 9 REQUIRED: What is the minimum profit to be earned by the of R 10 00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

3. Bunag, Belen, and Bustos are partners in an accounting firm. Their capital account balances at year-end were P180,000, P220,000, and P100,000, respectively. They share profits and losses on a 4:4:2, ratio respectively, after considering the following terms: a. Bustos is to receive a bonus of 10% of profit after deducting bonus b. Interest of 10% shall be paid on that portion of a partner’s capital in excessof P200,000. c. Salaries of P20,000 and P24,000 shall be paid to partners Bunag and Bustos,respectively. Assuming a profit of P220,000 for the year. REQUIRED: Prepare the following:A. Profit or Loss Distribution TableB. Corresponding JOURNAL ENTRY to distribute profit or loss
W and X are partners who have agreed to admit Y, who will invest P15,000 for a 20 percent interest. The previous capital balances were P15,000 and P30,000 for W and X, respectively. W and X had shared profits and losses equally. What amount will be recorded in Y's Capital account? a. P6,000 credit b. P12,000 credit c. P15,000 credit d. P9,000 credit
4. X, Y, and Z have capital balances of P40,000.00, P50,000.00, and P18,000.00 and a profit – sharing ratio 4:2:1, respectively. If X received P8,000.00 upon liquidation of the partnership, the total amount received by partner Z was: a. P10,000.00 b. P 8,000.00 c. P34,000.00 d. P -0- 5. Assume the same facts in No. 4, above, except that X received P26,000.00 as a result of the liquidation. The total gain/loss on realization amounted to: a. P 3,500.00 b. P14,000.00 c. P 7,000.00 d. P24,500.00
2.) Nali contributed P24,000 and To contributed P48,000 to form a partnership and they agreed to shareprofits in the ratio of their original capital contributions. During the first year of operations, they made aprofit of P16,290; Nali withdrew P5,050 and Toh P8,000. At the start of the following year, they agreed to admit Me into the partnership. Me was to receive a one fourth interest in the capital and profits upon payment of P30,000 to Nali and Tohh, whose capital accounts were to be reduced by transfers of Me’s capital account of amounts sufficient to bring them back to their original capital ratio.How much of the P30,000 paid by Me be given to NaliA. 10,000 C. 5,570B. 9,300 D. 3,730 3.) Erik, John and Nate were partners with capital balances on January 2, 2020 of P70,000, P84,000 and P56,000, respectively. Their profit and loss sharing ratio is 3:5:2. On July 1, 2020, Erik retires from the partnership. On the date of retirement the partnership net profit from operations is…
Dolce and Gabbana are partners with capital balances of P 160,000 and P 80,000. They share profits in the ratio 3:1. The partners agree to admit Vuitton as a member of the firm. Vuitton is admitted to a one-fourth interest in capital by the purchase of the interest of Dolce and Gabbana for P 60,000. How much is the capital of Gabbana after the admission of Vuitton?
Mohammed and Rashid are partners sharing profits in the ratio of 3:2 with capitals of OMR 50,000 and OMR 40,000 respectively. Interest on capital is agreed at 8% p.a. Interest on drawings is fixed at 10% p.a. The drawings of the partners were OMR 15,000 and OMR 10,000. Mohammed is entitled to a salary of OMR 12,000 p.a. and Rashid is entitled to get a commission of 10% on the Net Profit before charging such commission. The Net Profit of the firm before making the above adjustments was OMR 60,000 for the year ended 2021. Prepare the profit and loss appropriation account and capital Accounts
Dolce and Gabbana are partners with capital balances of P 160,000 and P 80,000. They share profits in the ratio 3:1. The partners agree to admit Vuitton as a member of the firm. Vuitton is admitted to a one-fourth interest in capital by the purchase of the interest of Dolce and Gabbana for P 60,000. How much is the capital of Gabbana after the admission of Vuitton? How much is the capital of Vuitton after her admission as a new partner?
6. Gan and Da are partners who share profits and losses in the ratio of 60% : 40%, respectively. Gan’s salary is P120,000 and Da’s is P60,000. The partners are also paidinterest on their average capital balances. In 2015, Gan received P60,000 of interest andDa, P24,000. The profit and loss allocation is determined after deductions for the salaryand interest payments. If Da’s share in the residual income (income after deductingsalaries and interest) was P120,000 in 2015, what was the total partnership income?
The following data were taken from the books of A&B Co, a partnership of Alpha and Beta for 20x1: Alpha Capital 240,000 Beta, Capital 360,000 PL ratio 1:2 Net income for the year 260,000 The partners agreed on the following profit and loss sharing terms: Salary of P 5,000 a month for Beta 10% interest on the capital balances 20% bonus for Alpha Round your answer to the nearest thousandth. How much is the share of Beta if bonus is to be computed after deducting salaries and interest? P 171,000 P 156,000 P 104,000 Some other amount How much is the share of Alpha if bonus is to be computed after salaries, interest and bonus? P 89,000 P 171,000 P 86,000 P174,000
CC, PP and AA, accountants agree to form a partnership and to share profits in the ratio of 5:3:2. They also agreed that AA is to be allowed a salary of P28,000, and that PP is to be guaranteed P21,000 as his share of the profits, during the first operatioms, income from fees are P180,000, while expense total P96,000. What amount of net income should be credited to each partner's capital account?
The partners of Dan and Ken are engaged in trading. Dan’s original capital was P40,000 and Ken ‘s was P60,000. They agreed to share profits and losses as follows: Dan Ken Salaries Php28,000 Php40,000 Interest on original capital 10% 10% Balance 30% 70% _______ If the losses for the year were P20,000, what share of the loss would Ken receive? a.P2,600 c. ( P2,600) b.(P22,600) d. P5,200
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