Financial Accounting: Information for Decisions
8th Edition
ISBN: 9781259533006
Author: John J Wild
Publisher: McGraw-Hill Education
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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?
Question
Stephanie Calamba and Allan Brillantes decided to form a partnership. They agreed that Calamba will invest P200,000 and Brillantes, P300,000. Calamba will devote full time to the business, and Brillantes on part-time only. The following plans for the division of profits are being considered:
1. Interesto of 10% on original investments and the remainder 3:2
2. Interest of 10% on original investments, salary allowances of P340,000 to Calamba and P170,000 to Brillantes, and the remainder equally.
3. Plan (e), except that Calamba is also to be allowed a bonus equal to the 20% of the amount by which profit exceeds the salary allowances.
Determine the partners’ share in profit or loss for each of the situations above assuming:
(1) Profit of P1,500,000
(2) Profit of P660,000
Problem #3
SCORE:
PROFESSOR
Rules for the Distribution of Profits or Losses
Elisa Diar and Ma. Concepcion Manalo formed a partnership, investing P330,000 and P110,000, respectively. Determine the partners' participation in the 2019 profit of P420,000 under each of the following independent assumptions:
E. Interest at the rate of 8% allowed on original investments and the remainder divided in the ratio of 2:3.
d. Salary allowances of P50,000 and P70,000, respectively, and the balance to be divided equally
e. Allowance of interest at the rate of 8% on inal investments, salary allowances P50,000 and P70,000, respectively, and the remainder to be divided equally
Chapter D Solutions
Financial Accounting: Information for 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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