Pinki, Deepati and Kaku are partner’s sharing profits in the ratio of 5:4:1.Kaku is given a guarantee that his share of profits in any given year would not be less than Rs. 5,000. Deficiency, if any, would be borne by Pinki and Deepti equally. Profits for the year amounted to Rs. 40,000. Record necessary journal entries in the books of the firm showing the distribution of profit.

Kavita and Lalit are partners sharing profits in the ratio of 2:1. They decide to admit Mohan with share in profits with a guaranteed amount of Rs. 25,000. Both Kavita and Lalita undertake to meet the liability arising out of Guaranteed amount toMohan in their respective profit sharing ratio. The profit sharing ratio between Kavita and Lalit does not change. The firm earned profits of Rs. 76,000 for the year 2006–07.Show the distribution of profit amongst the partners.

driana Gonzalez and Sylvester Van Horne formed a partnership, dividing income as follows: Annual salary allowance to Gonzalez of $25,000. Interest of 5% on each partner’s capital balance on January 1. Any remaining net income divided to Gonzalez and Van Horne, 2:1. Gonzalez and Van Horne had $126,000 and $189,000, respectively, in their January 1 capital balances. Net income for the year was $115,000. Required: How much net income should be distributed to Gonzalez and Van Horne?Gonzalez: $fill in the blank 1Van Horne: $fill in the blank 2 I got this question wrong for Gonzalez I put 49500 and Van home 24750 wrong.

The capital balances of Donny and Belle remained at P500,000 and P250,000 throughout the entire year. Donny made regular drawings of P150,000 and Tiny P100,000. These are normal drawings made by the partners. Net income for the year was P400,000. They agree to divide profit equally. a. How much will be the capital balance of Donny at year end? b. How much will be the drawings' capital balance of Belle at year end?

On March 1, Eckert and Kelley formed a partnership. Eckert contributed $82,500 cash, and Kelley contributed land valued at $60,000 and a building valued at $100,000. The partnership also took Kelley’s $92,500 longterm note payable associated with the land and building. The partners agreed to share income as follows: Eckert gets an annual salary allowance of $25,000, both get an annual interest allowance of 10% of their initial capital investment, and any remaining income or loss is shared equally. On October 20, Eckert withdrew $34,000 cash and Kelley withdrew $20,000 cash. After adjusting and closing entries are made to the revenue and expense accounts at December 31, the Income Summary account had a credit balance of $90,000. 1. Prepare journal entries to record (a) the partners’ initial capital investments, (b) their cash withdrawals, and (c) the December 31 closing of both the withdrawals and Income Summary accounts. 2. Determine the balances of the partners’ capital accounts as of…

Solange and Louis enter into a partnership agreement. Solange contributes $65,000 in capital. Louis contributes $95,000 in capital. The agreement stipulates that profits and losses will be shared in the ratio of their respective capital account balances. The net income for the year is $32,000. Which of the following amounts should be credited to Louis’s capital account? $19,000 $32,000 $16,000 $13,000

Varun and Arun are partners in a firm sharing profits and losses equally. On the date of dissolution of the partnership firm, Varun’s wife’sloan was Rs. 45,000, whereas Arun’s loan was Rs. 65,000. Which loan will be paid first and why ?

The partnership contract of Robert Florence and Karen Partnership provided for the sharing of net income and losses as follows:A) Salaries of $30,000 to Robert, $28,000 to Florence and $26,000 to Karen.B) Interest of 10% a year on average capital balances.C) Any residual income or loss in the ration of 3:5:2 to Robert, Florence, and Karen respectively. The net income for the year is $140,000. The average capital balances were $60,000 for Robert, $40,000 for Florence and $100,000 for Karen. Prepare a journal entry to distribute the profit. Show details of the calculation in the space provided.

Anubha and Kajal are partners of a firm sharing profits and losses in the ratioof 2:1. Their capital, were Rs.90,000 and Rs.60,000. The profit during the year were Rs. 45,000. According to partnership deed, both partners are allowed salary, Rs. 700 per month to Anubha and Rs. 500 per month to Kajal. Interest allowed on capital @ 5%p.a. The drawings at the end of the period were Rs. 8,500 for Anubha and Rs. 6,500 for Kajal. Interest is to be charged @ 5% p.a. on drawings. Prepare partners capital accounts, assuming that the capital account are fluctuating.

Beth, Luz and Ana divide profit and loss in the ratio of 2:1:1 respectively, after giving a monthly salary of P10,000 to each partner and bonus of 20% to Beth. Determine the share of each partner and record the distribution on the following independent situations:  If Luz received a profit share of P50,000 after six months, how much did Beth receive? Assume bonus is based on net income before bonus. b) id Luz received a profit share of P50,000 after one year, how much did Beth receive? Bonus is based on the net income after bonus.