ABC and DEF are asked by the ABC to handle the marketing of a benefit basketball game. Being avid fans, they readily accepted the offer and formed a joint arrangement. To achieve an equitable distribution of earnings the following agreement were as follows: ➤ The partner who finances the purchase of tickets shall be entitled to a 15% commission The partner who makes ticket sales shall be entitled to a 10% commission Any remainder was to be divided equally. After the game was over, the following information was obtained: ABC purchased tickets worth P150 250 ► ► DEF advanced P18,250 for expenses and also purchased a ticket for
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- Profit sharing to the Andara firm which got a loss of IDR 15,820,800, - which is a mustborne by Sani, Rina and Tika as allies involved. Profit formation and sharingin accordance with the agreement are as follows;1. Tika's share is 20% of profit / loss2. Sani and Rina get interest for the initial capital of IDR 2,500,0003. Sani gets a salary of IDR 100,000 / month and Rina IDR 150,000 / month4. The remainder is divided equally among Sani and Rina.Calculate the total partnership capital based on the profit sharing at the Andara firm!D, E and F agreed to share profit and losses as follows: • Salaries of P50,000, P40,000 and P20,000 to D, E and F, respectively • First P100,000 of profits after salaries, 20% bonus to D • Excess profits after salaries and the bonus to D above P100,000, 10% bonus to E • Residual profits or loss to F The partnership made P250,000 net profit. How much is E's profit sharing? Show your solution. a. P45,000 b. P43,200 c. P42,000 d. P41,200Jpea, Jic, and Jfenix formed a partnership and named it ESBIEYEY. At the end of the year, the partnership earned a profit of P 1,000,000. The capital balances are P250,000, P280,000, and P270,000 for Jpea, Jic, and Jfenix, respectively. The partners agreed to distribute the profit as follows: Interest to ending capital of 10% will be given Jpea and Jic will be given a salary amounting to P 150,000 each Jfenix will be given a bonus of 10% of net income after interest, salary and bonus Remaining profit is to be distributed equally How much is the bonus given to Jfenix? A. P 67,000 B. P 62,000 C. P 56,364 D. P 60,909 How much is Jpea’s share in net income? A. P 365,879 B. P 360,879 C. P 362,879 D. P 364,879 How much is Jic’s share in net income? A. P 360,879 B. P 362,879 C. P 364,879 D. P 365,879
- Rockford, Skeeba, and Tapinski are partners in a business which manufactures specialty railings. Their profit and loss agreement provides for the allocation of profits and losses as follows: 1. Salaries of $50,000, $40,000, and $55,000 for Rockford, Skeeba, and Tapinski, respectively. 2. Skeeba will receive a bonus equal to 5% of sales in excess of $1,000,000. 3. All partners will receive a bonus of 10% of net income in excess of $150,000 after their bonus. 4. Partners will be allocated interest on their weighted-average capital balance to the extent that it exceeds $50,000. Drawings in excess of annual salaries will be considered a reduction in capital. Interest is computed at the rate of 10%. 5. Remaining profits or losses will be allocated 35%, 25%, and 40% to Rockford, Skeeba, and Tapinski, respectively.6. Gains or losses from the sale of depreciable assets will be excluded from the above provisions and will be equally allocated between Rockford and Tapinski. Activity in the…Carson and Lamb establish a partnership to operate a used-furniture business under the name C & L Furniture. Carson contributes furniture that cost P60,000 and has a fair value of P90,000. Lamb contributes P30,000 cash and delivery equipment that cost P40,000 and has a fair value of P30,000. The partners agree to share profits and losses 60% to Carson and 40% to Lamb. Calculate the peso inequity that will result if the initial contributions of the partners are recorded at cost rather than fair market value.Rivera, Sampson, and Elliott are partners in a commercial plumbing business. Rivera and Sampson have also started another contracting company and have cash flow needs, which require periodic distributions from the partnership. In order to deal fairly with the level of partnership withdrawals, the partnership agreement calls for profit sharing as follows:Component Rivera Sampson ElliottSalaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$80,000 $80,000 $100,000Bonus on income after the bonus . . . . . . . . . . .0% 0% 10%Interest on ‘‘average net capital’’ . . . . . . . . . . . 0% 10% 10%Percentage of remaining profits. . . . . . . . . . . . .0% 30% 40%‘‘Average net capital’’ is determined by netting the partners’ drawing accounts against their capital accounts and weighting the net amounts for the appropriate portion of…
- On June 30, 20x10 MOC, the sole proprietor of MOC Inc, expands the company and establishes a partnership with CBC and GKR. The partners plan to share profits and losses as follows: MOC, 50%; CBC, 25% and GKR 25%. They also agree that the beginning capital balances of partnership will reflect this same relationship. MOC asked CBC to join the partnership because his many business contacts are expected to be valuable during the expansion. CBC is also contributing P40,000 and a building that has an original cost of P520,000, book value of P420,000, tax assessment of P310,000 and fair value of P370,000. The building is subject to a P242,000 mortgage that the partnership will assume. GKR is contributing P66,000 and marketable securities costing P252,000 but are currently worth P345,000.MOC’s investment in the partnership is his business. He plans to pay off the notes with his personal assets. The other partners have agreed that the partnership will assume the accounts payable. The balance…Bray, Lincoln, and Mapes arranged to import and sell orchid corsages for a university dance. They agreed to share equally the net income or net loss of the venture. Bray and Lincoln advanced $900 and $1,380 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $3,690 in cash. Use the minus sign to indicate any deficiency for the capital accounts. a. How much net income was earned from the venture? b. How should the $3,690 be distributed? c. Assume that the partnership has only $1,950 instead of $3,690. Complete the following table to determine if any of the three partners have a capital deficiency?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?
- Patton is considering joining Microtech Enterprises as a partner. The company provides data imaging for a variety of end users. Patton will have to contribute $100,000 of capital upon admission as a partner and will need to decide on a profit-sharing arrangement. Three alternatives are being proposed as follows:Alternative A—Patton will be allocated a salary of $120,000, 10% of average capital after considering withdrawals, and 10% of net income. At the end of each calendar quarter, $30,000 will be distributed to Patton. No additional profits will be allocated to Patton.Alternative B—Patton will be allocated a salary of $96,000, 10% of average capital after considering withdrawals in excess of $60,000, and a bonus of 10% of net income. At the end of the second, third, and fourth calendar quarters, Patton will receive a distribution of $24,000. At the end of the first quarter of the following year, Patton will receive a distribution of $60,000. No additional profits will be allocated to…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.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?