NAME: SCORE: SECTION: PROFESSOR: Multiple Choice 1. Ceradoy, Manongsong and Anuran are partners sharing residual profits in the ratio of 3:2:1. The partnership agreement provides for 8% interest on capital and a salary for Manongsong of P80,000 per annum. Profit for 2015 was P840,000 and the year-end balances on partners' capital accounts are as follows: Ceradoy, P200,000; Manongsong, P150,000 and Anuran, P120,000. What was Anuran's share of residual profits for 2015? a. P120,400 b. P126,670 C. P130,000 d. P140,000
NAME: SCORE: SECTION: PROFESSOR: Multiple Choice 1. Ceradoy, Manongsong and Anuran are partners sharing residual profits in the ratio of 3:2:1. The partnership agreement provides for 8% interest on capital and a salary for Manongsong of P80,000 per annum. Profit for 2015 was P840,000 and the year-end balances on partners' capital accounts are as follows: Ceradoy, P200,000; Manongsong, P150,000 and Anuran, P120,000. What was Anuran's share of residual profits for 2015? a. P120,400 b. P126,670 C. P130,000 d. P140,000
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 9E
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Concept explainers
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Question
Transcribed Image Text:SCORE:
NAME:
PROFESSOR:
SECTION:
Multiple Choice
1. Ceradoy, Manongsong and Anuran are partners sharing residual profits in the ratio
of 3:2:1. The partnership agreement provides for 8% interest on capital and a
salary for Manongsong of P80,000 per annum. Profit for 2015 was P840,000 and
the year-end balances on partners' capital accounts are as follows: Ceradoy,
P200,000; Manongsong, P150,000 and Anuran, P120,000. What was Anuran's share
of residual profits for 2015?
a. P120,400
b. P126,670
C. P130,000
d. P140,000
2 Malaluan and Baral are in partnership. They share profits in the ratio 3:2 and close
their accounts on June 30 each year.On Jan. 1, 2015, Castro joined the partnership.
The profit-sharing ratio was revised to become Malaluan 50%, Baral 25% and Castro
25%, after providing for annual salaries as follows: Baral, P20,000 and Castro,
P12,000. The partnership profit for the year ended June 30, 2015 was P480,000,
accruing evenly over the year. What are the partners' total share in profits for the
year ended June 30, 2015?
Malaluan
Baral
Castro
a.
P256,000
P162,000
P62,000
P64,000
P248,000 P168,000
P166,000
b.
P66,000
P60,000
C.
P264,000
d P264,000
P156,000
3. Refozar, Martinez and Magsino formed a partnership. It's on a calendar year basis.
The profit-sharing arrangements are as follows:
Until June 30, 2015, the annual salaries are provided as follows: Martinez, P40,000
and Magsino, P20,000. The residual profit will be shared in the ratio of 6:2:2.
rom July 1, 2015, the salaries will be discontinued and the profit to be divided in
the revised ratio of 5:3:2.
Profit for the year ended Dec. 31, 2015 was P400,000 before charging partners'
alaries, atcruing evenly through the year, and after charging an expense of
P40,000, which it was agreed related wholly to the first six months of the year.
How should the profit for the year be divided among the partners?
Refozar
P182,000
P200,000
Magsino
P88,000
Martinez
P130,000
P116,000
b.
P84,000
Partnership Operations and Financial Reporting | 2-33
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