Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
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Problem 2. The partnership agreement of Wanwan, Layla and Claude provides for the year-end allocation of net income in the following order:
First, Wanwan is to receive 10% of net income up to P200,000 and 20% over 200,000
Second, Layla and Claude are each too receive 5% of the remaining income over P300,000.
The balance of income is to be allocated equally among the three partners.
The partnership income was P500,000 before any allocations to partners. What amount should be allocated to each partner?
Problem 3. The A,B,C partnership agreement specifies that partnership net income be allocated as follows:
A B C
Salary allowance P30,000 P10,000 P40,000Interest on ave. capital balance 10% 10% 10% Remainder 40% 40% 20%
The average capital balances for the current year were P50,000 for A, P30,000 for B, and P20,000 FOR c.
Assuming a current year net income of P150,000, what amount should be allocated to each partner?
Assuming a current year net income of P50,000, what amount should be allocated to each partner?
Problem 1:
Interest on capital and bonus A and B formed a partnership. The partnership agreement stipulate the
following:
a. Monthly salary of P5,000 for A.
b. 20% bonus to A, before deductions for salary, interest, and bonus.
c. 10% interest in the weighted average capital of B.
d. Salary, bonus and interest are considered partnership expenses.
The result of operations show the following:
Revenues P150,000
Expenses (including salary, interest and bonus) (120,000)
Profit P30,000
The weighted average capital balance of B's capital account is P100,000
Required: How much is the bonus of A?
Chapter D Solutions
Connect Access Card for Financial Accounting: Information and Decisions
Ch. D - Prob. 1DQCh. D - Prob. 2DQCh. D - Prob. 3DQCh. D - Prob. 4DQCh. D - Prob. 5DQCh. D - Prob. 6DQCh. D - Prob. 7DQCh. D - Prob. 8DQCh. D - Prob. 9DQCh. D - Prob. 10DQ
Ch. D - Prob. 11DQCh. D - Prob. 12DQCh. D - Prob. 1QSCh. D - Prob. 2QSCh. D - Prob. 3QSCh. D - Prob. 4QSCh. D - Prob. 5QSCh. D - Prob. 6QSCh. D - Prob. 7QSCh. D - Prob. 8QSCh. D - Prob. 1ECh. D - Prob. 2ECh. D - Prob. 3ECh. D - Prob. 4ECh. D - Prob. 5ECh. D - Prob. 6ECh. D - Prob. 7ECh. D - Prob. 8ECh. D - Prob. 9ECh. D - Prob. 10ECh. D - Prob. 11ECh. D - Prob. 12ECh. D - Prob. 1PSACh. D - Prob. 2PSACh. D - Prob. 3PSACh. D - Prob. 4PSACh. D - Prob. 5PSACh. D - Prob. 1PSBCh. D - Prob. 2PSBCh. D - Prob. 3PSBCh. D - Prob. 5PSBCh. D - Prob. 3BTN
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