The average partnership capital balance in 2017, A is $100,000, B is $55,000 and C is $30,000.Allies get 5% of their average capital balance. After deducting the salary for A of $20,000, and forB of $10,000, the remaining profit and loss is divided equally. But in 2017 partnership A, B, and Csuffered a loss of $22,000 before deducting interest and salaries for partners. What is the changein capital A?

The partnership comes into existence when two or more persons agree to do the business and further…

Answered: The average partnership capital balance…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter20: Corporations And Partnerships

Section: Chapter Questions

Problem 6CPA

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A, B and C are partners with average capital balances during 2018 of P470,000. P230,000, and P160,000, respectively. The partners receive 10% interest on their average capital balances; after deducting salaries of P120,000 to A and P80,000 to C, the residual profits or loss divided in a 3:2:5 ratio. In 2018, the partnership had a net loss of P100,000 before the interest and salaries to partners. By what amount should A's and C's capital account change- increase (decrease)? If the partnership had a loss of P100,000 after the interest and salaries to partners, by what amount should B's capital account change- increase (decrease)?
A, B and C are partners with average capital balances during 2018 of P470,000. P230,000, and P160,000, respectively. The partners receive 10% interest on their average capital balances; after deducting salaries of P120,000 to A and P80,000 to C, the residual profits or loss divided in a 3:2:5 ratio. In 2018, the partnership had a net loss of P100,000 before the interest and salaries to partners. 1. By what amount should A's capital account change- increase (decrease)?
The profit and loss sharing agreement for the A, B, and C partnership provides for a $15,000 salary allowance to B. Residual profits and losses are allocated 5:3:2 to A, B, and C, respectively. In 2016, the partnership recorded $120,000 of net income that was properly allocated to the partner's capital accounts. On January 25, 2017, after the books were closed for 2016, A discovered that office equipment, purchased for $12,000 on December 29, 2016, was recorded as office expense by the company bookkeeper. Prepare the necessary correcting entry(s) for the partnership.
The profit and loss sharing agreement for the A, B, and C partnership provides for a P15,000 salary allowance to B. Residual profits and losses are allocated 5:3:2 to A, B, and C, respectively. In 2016, the partnership recorded P120,000 of net income that was properly allocated to the partner's capital accounts. On January 25, 2017, after the books were closed for 2016, A discovered that office equipment, purchased for P12,000 on December 29, 2016, was recorded as office expense by the company bookkeeper. Required: Prepare the necessary correcting entry(s) for the partnership.
The profit and loss sharing agreement for the Tuttle, Upman, and Veer partnership provides for residual profits and losses to be allocated 2:3:6 to Tuttle, Upman, and Veer, respectively. In 2014, the partnership recorded $11,000 of net income that was properly allocated to the partners' capital accounts. On January 18, 2015, after the books were closed for 2014, Tuttle discovered that the $16,500 payment for the partnership's liability and workers compensation insurance for 2015 was recorded as insurance expense when it was paid on December 28, 2014. Required: Prepare the necessary correcting entry(s) for the partnership.
4. In 2021, X, Y, & Z are partners with average capital balances of P120,000, P60,000, and P40,000, respectively. The partners receive 10% interest on their average capital balance. After deducting salaries of P30,000 to X and P20,000 to Y, the residual profit or loss is devided equally. During the year the partnership sustained a loss of P33,000, before interest and salaries to the partners. By what amount should X's capital account change? *
AA, BB, and CC are partners with average capital balances during 2021 of P360,000, P180,000, and P120,000, respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of P90,000 to AA and P60,000 to CC, the residual profit or loss is divided equally. In 2021, the partnership sustained a P99,000 loss before interest and salaries to partners. By what amount should AA's capital account change?

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