The capital accounts of Scott and Tucker at the end of the fiscal year 2019 are as follows: Sott, Capital January 1 Balance May 1 Investment October 1 Withdrawal P60,000 P210,000 90,000 Tucker, Capital January 1 Balance April 1 Withdrawal P30,000 P150,000 The partnership profit for the year ended December 31, 2019 was P300,000,
The capital accounts of Scott and Tucker at the end of the fiscal year 2019 are as follows: Sott, Capital January 1 Balance May 1 Investment October 1 Withdrawal P60,000 P210,000 90,000 Tucker, Capital January 1 Balance April 1 Withdrawal P30,000 P150,000 The partnership profit for the year ended December 31, 2019 was P300,000,
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 57P
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answer number 4-6
Transcribed Image Text:The capital accounts of Scott and Tucker at the end of the fiscal
year 2019 are as follows:
Scott, Capital
January 1 Balance
P210,000
May 1
Investment
90,000
October 1 Withdrawal P60,000
Tucker, Capital
January 1 Balance
April 1 Withdrawal P30,000
P150,000
The partnership profit for the year ended December 31, 2019
was P300,000.
Instruction: Prepare schedule of profit allocation and journal
entries to record transfer to profit to the capital accounts under
each of the following independent assumptions:
1. Profit is divided 60% to Scott and 40% to Tucker.
2. Profit is divided into ratio of capital balances at the
beginning of the period.
3. Profit is divided in the ratio of average capital balance.
4. Interest of 8% is allowed on the average capital and the
balance of profit is divided equally.
5. Salaries of P60,000 and P48,000 are allowed to Scott and
Tucker, respectively, and the balance of the profit is divided
in the ratio of capital balances at the end of the period.
6. Scott is allowed a bonus of P33 1/3% of profit after bonus,
and the balance of the profit is divided in the ratio of the
average capital.
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