Shares of each partner
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- The capital balances of the partners are presented to you before the retirement of X: X, P50,000; Y, P45,000; Z, P35,000. P/L ratio, equally. After the retirement of X, the capital balance of Z was P34,000. How much is the total capital after the retirement of X? A. P48,000 B. P80,000 C. P78,000 D. P52,000 The capital balances of the partners are presented to you before the retirement of Z: X, P60,000; Y, P55,000; Z, P45,000. P/L ratio, equally. After the retirement of Z, the capital balance of X was P57,500. How much is the capital of Y after the retirement of Z? A. P55,000 B. P57,500 C. P52,500 D. P115,000The capital balances of the partners are presented to you before the retirement of Y: X, P40,000; Y, P35,000; Z, P25,000. P/L ratio, equally. After the retirement of Y, the capital balance of X was P42,000. How much was the cash settlement to Y? A. P31,000 B. P33,000 C. P37,000 D. P39,000Assume that Partner Z invested $104,551 in cash to join the partnership. What would be the increase in Partner X's capital under the bonus method? (Round to the nearest dollar). Please dont give solutions in image thnx
- 2. Use the following information for the next three cases: The partnership agreement of A, B and C stipulates the following: Partners A and C shall receive annual salaries of P12,000 and P8,000, respectively. DA bonus of 10% of profit after salaries but before deduction of bonus shall be given to Partner A, the managing partner. Each partner shall receive 10% interest on average capital investments. TAny remaining profit or loss shall be shared as follows: 40% to A and 30% each to B and C. The average capital investments of partners during the year are as follows: AP100,000 B 60,000 C 120,000 Case #1: The partnership earns profit of P100,000. Requirement: Compute for the respective shares of the partners on the partnership profit. Case #2: The partnership earns profit of P10,000. Requirement: Compute for the respective shares of the partners on the partnership profit. Case #3: The partnership incurs loss of P20,000. Requirement: Compute for the respective shares of the partners on the…A is trying to decide whether to accept a salary of P40,000 or a salary of P25,000 plus a bonus of 10% of net income before salary and bonus as a means of allocating profit among the partners. Salaries traceable to the other partners are estimated to be P100,000. What amount of income would be necessary so that A would consider the choices to be equal?Kent Deriquito and Jude Searez are partners of Cebu Vintage Car. The Income and Expense. Summary account before final closing shows a credit balance of P450,000 at the end of the fiścal year. The following were taken from their respective çapital account ledgers: Kent Deriquito Balance 752,000 70,000 50,000 Jan. 1 Oct. 1 Withdrawal Dec. 1 Investment Jude Searez 680,000 80,000 10,000 40,000 Jan. 1 Balance March 1 Investment Nov. Withdrawal %3D Dec. Investment
- Daryl decided to withdraw from Daryl, Lei, Stephen, and Jacob Partnership. They share profit and loss in the ratio of 2:3:2:3 and have capital balances of P100,000, P160,000, P100,000 and P140,000, respectively. The assets and liabilities of the partnership are fairly valued. Required: A. Record the withdrawal of Daryl from the partnership under each of the following independent assumption: 1. Daryl is paid cash of P100,000 for the book value of his interest. 2. Daryl is paid cash of P120,000 for the book value of his interest.Requirement: Compute for the respective shares of the partners in | shared equally, while losses on a 70:30 ratio. The partnership PROBLEM 3: EXERCISES 1. Partners A and B share in profits and los es on a 70:30 ratio after salaries of P80,000 for A and P40,000 or B. The business earned profit of P180,000 before deduction or the salaries. Requirements: a. Compute for the partners' respective share in the profit. b. Provide the journal entries (the salar are withdrawn periodically). for annual salary 2. A and B's partnership agreement provi allowances of P160,000 for A and P80, for B. Profits are earned profit of P200,000. Reguirement: Compute for the respective shares of the partners in the profit.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.
- Based on the above information, kindly answer the following: 1. In the profit distribution schedule, the salary allowance of Tom will be? 2. Of the P1,404,000 net profit of the partnership, the share of Rey will be? 3. In the profit distribution schedule, the total salary allowance will be? Please answer complete required1,2,36. Martinez is trying to decide whether to accept a salary of P60,000 or a salary of P25,000 plus a bonus of 20% of net income after salaries and bonus as a means of allocating profit among the partners. Salaries traceable to the other partners are estimated to be P75,000. What amount of income would be necessary so that Martinez would consider the choices to be equal? a. P175,000 b. P210,000 C. P285,000 d. P310,0001. Say, Alittle and Prayer are partners in a furniture company. following profit and loss distributions; Their partnership agreement provides for the > Say, Alittle and Prayer are to receive salaries of P40,000, P36,000, and P13,650, respectively. Say is to receive a bonus equal to 10% of income before the bonus. Each partner is to receive 10% interest on the weighted average capital balance. Withdrawals are considered to be reduction of capital for purposes of interest calculations. > Any remaining profits of losses are to be divided equally among the partners. Capital balance information for 2006 is as follows: Alittle 6,000 Say 10,000 1,000 2,000 1,000 Prayer 40,000 2,000 15,000 Jan. 1, 2006 Withdrawal 4/1/06 Investment 7/1/06 Withdrawal 10/1/06 4,000 2,000 Prepare distribution of profit or loss table showing the required profit that will allow Say to withdraw P65,000 from said profit. 2. Ashe Company was organized on January 1, 2010, with authorized capital of 100,000 shares of…