PP and QQ are partners operating a chain of retail stores. The partnership agreement provides for the following: PP Salaries.. QQ P5,000 P10,000 Interest on average capital balances. Bonus. 10% 10% .20% of net income before interest but after bomus and salaries 70% None remainder. 30% The income summary for year 2020 shows a credit balance of P51,000 before any deductions. Average capital balances for PP and QQ are PS0,000 and P75,000, respectively. The share of PP and QQ in the P51,000 net income would be,
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- The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.YES Partnership started operations on January 1 , 2016 with the following capital balances : Yves P88,000 Ernest 64,000 Serge 90,000 Their profit and loss agreement has the following provisions : Yves will be given an annual salary of P15,000 and Ernest P10,000 All partners will be given 20 % interest on beginning capital balances every year Bonus of 25% of Net Income will be given to Serge The balance of the profit , or the loss , will be divided on a 4/5 / 1 to Yves , Ernest and Serge , respectively . A. Assuming that the company resulted in a net loss of 250.000 in 2016 : 1. What is the share of Yves in Net Profit or Net Loss for 2016 ? 2. What is the share of Ernest in Net Profit or Net Loss for 2016 ? 3. What is the share of Ernest in Net Profit or Net Loss for 2016?Sophia and Anna are partners operating a chain of retail stores. The partnership agreement provides for the following: · Annual salaries to Sophia of P40,000 and P30,000 to Anna. · 12% interest on average capital balances. · Bonus to Sophia of 20% of net income before salaries and bonus but after interest on capital. · Residual income in the ratio 25% to Sophia and 75% to Anna. The Income Summary account for year 2018 shows a credit balance of P244,000 before any allocations. Average capital balances for Sophia and Anna are P100,000 and P150,000, respectively. How much must be the share of Sophia on the partnership net income?
- 19 AA and BB are partners with capital accounts that had the following transactions during 2022: AA BB Debit Credit Debit Credit Beginning balance, January 1 P270,000 P280,000 February 28 P80,000 March 1 120,000 April 30 160,000 June 1 P100,000 August 1 140,000 September 30 40,000 October 31 40,000 The partnership agreement provides for the following: Interest of 9% is to be provided to AA Salaries of P4,000 is to be given to BB per quarter A bonus of 25% is to be given to AA based on net income after interest and salaries Remaining balance is to be allocated on a ratio of 40:60. The income summary account has a credit balance of P1,050,000 before profit distribution. BB has a Drawing account amounting to P40,000 which is a withdrawal made by BB in anticipation of future profits on July 1, 2022. How much is the…As of July 1, 2020, MM and AA decided to form a partnership. Their balance sheets on this date are: MM AA Cash P 15,000 P 38,000 Accounts Receivable 680,000 255,000 Allowance for doubtful accounts (140,000) (30,000) Merchandise Inventory - 202,000 Machinery and Equipment 150,000 270,000 Total P705,000 P735,000 Accounts Payable 135,000 240,000 MM, capital 570,000 AA, capital - 495,000 Total P705,000 P735,000 The partners agreed that the machinery and equipment of MM is under depreciated by P15,000 and that ofAA by P45,000. Allowances for doubtful accounts is to be set up amounting to P120,000 for MM andP40,000 for AA. The partnership agreement provides for the profit and loss ratio and capital interest of60% to MM and 40% to AA with AA’s capital as base. How much cash must MM invest to bring the partner's capital balances proportionate to their profit and loss ratio?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?
- The partnership agreement of Madi-Maxi Traders provided for the following: Balances on 1 March 20.19:Capital: Madi R 125 000Maxi R 85 000Current Account: Madi R 24 000Maxi R 8 000 (debit) Net profit for the period: R 366 000 Transactions during the year, not included in profit:1. Madi will be full-time employed and will receive a monthly salary of R 12 000.2. Interest on drawings to be charged at 15% per annum.3. Interest on capital will be paid at 12% per annum.4. Interest on current accounts will be charged at 7% per annum.5. The partners will share profits in the ratio of capital contributed.6. On 1 July 20.18, Madi withdrew R 10 000 in cash. On 1 December 20.18, Madi withdrew goods at a cost of R 5 000, this was drawings against expected profits.7. Madi drew R 6 000 of his salary at the end of each month.REQUIRED:Record the journal entries for Madi-Maxi Traders for the year ended 29 February20.20.As of July 1, 2020, MM and AA decided to form a partnership. Their balance sheets on this date are: Cash Accounts Receivable Allowance for doubtful accounts Merchandise Inventory Machinery and Equipment Total P705,000 MM AA P 38,000 255,000 (30,000) 202,000 270,000 P735,000 240,000 495,000 P735,000 P 15,000 680,000 (140,000) - 150,000 Accounts Payable MM, capital AA, capital Total P705,000 135,000 570,000 - The partners agreed that the machinery and equipment of MM is under depreciated by P15,000 and that of AA by P45,000. Allowances for doubtful accounts is to be set up amounting to P120,000 for MM and P40,000 for AA. The partnership agreement provides for the profit and loss ratio and capital interest of 60% to MM and 40% to AA with AA’s capital as base. How much cash must MM invest to bring the partner's capital balances proportionate to their profit and loss ratio?Adam and Boru are partners sharing profit and loss in the ratio of 1:1. Their Statement of Financial Position(Balance Sheet) stood as at 31.12.2020 as follows: A and B Partnership Statement of Financial Position As at 31st December 2020 ASSETS 2020 Current Assets Kshs'000 Kshs'000 Cash and Cash Equivalent 43,500 Short Term Deposits - Prepaid Insurance 1,000 Debtors 20,500 Less Provision for Doubtful Debts (1,000) 19,500 Inventories 30,000 94,000 Non Current Assets Machinery 22,000 Less:Accumulated Depreciation - 22,000 Buildings 30,000 Less:Accumulated Depreciation - 30,000…
- YES Partnership started operations on January 1, 201 balances : with the following capital Yves P88,000 Ernest 64,000 Serge 90,000 Their profit and loss agreement has the following provisions : Yves will be given an annual salary of P16,000 and Serge P8,000 All partners will be given 10% interest on beginning capital balances every year Bonus of 20% of Net Income will be given to Yves The balance of the profit , or the loss, will be divided on a 5 :2:3 to Yves , Ernest and Serge, respectively . A. Assuming that the company resulted in a net loss of 16,000 in 2016 1. What is the share of Yves in Net Profit or Net Loss for 2016? 2. What is the share of Ernest in Net Profit or Net Loss for 2016? 3. What is the share of share in Net Profit or Net Loss for 2016? B. Assuming that the company resulted in a profit of 24.200 in 2016 : 1. What is the share of Yves in Net Profit or Net Lose for 2016? 2. What is the share of Ernest in Net Profit or Net Loss for 2016 ? 3. What is the Serge in Net…YES Partnership started operations on January 1, 201 balances : with the following capital Yves P88,000 Ernest 64,000 Serge 90,000 Their profit and loss agreement has the following provisions : Yves will be given an annual salary of P16,000 and Serge P8,000 All partners will be given 10% interest on beginning capital balances every year Bonus of 20% of Net Income will be given to Yves The balance of the profit , or the loss, will be divided on a 5 :2:3 to Yves , Ernest and Serge, respectively . B. Assuming that the company resulted in a profit 150.000 in 2016 : 1. What is the share of Yves in Net Profit or Net Lose for 2016? 2. What is the share of Ernest in Net Profit or Net Loss for 2016 ? 3. What is the Serge in Net Profit or Net Loss for 2016?Sophia and Anna are partners operating a chain of retail stores. The partnership agreement provides for the following: · Annual salaries to Sophia of P40,000 and P30,000 to Anna. · 12% interest on average capital balances. · Bonus to Sophia of 20% of net income after allowance for salaries, interest, and bonus. · Residual income in the ratio 25% to Sophia and 75% to Anna. The Income Summary account for year shows a credit balance of P244,000 before any allocations. Average capital balances for Sophia and Anna are P100,000 and P150,000, respectively. How much must be the share of Sophia on the partnership net income?
