16. Abelardo, Baligod and Cabatingan are partners with average capitalbalances during 2020 of P378,000, P190,920, and P129,880, respectively.The partners receive 10% interest on their average capital balances; afterdeducting salaries of P97,860 to Abelardo and P66,100 to Cabatingan, theresidual profits or loss is divided equally. In 2020, the partnership had a netloss of P100,499.20 before the interest and salaries to partners. By whatamount should Abelardo's and Cabatingan's capital account changeincrease (decrease)?Abelardoa. 24,213.60Cabatingan(32,358.40)14,029b.23,581C.(32,675)24,98825,966d.22,686

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

Answered: 5. Abelardo, Baligod and Cabatingan are…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A. B and C are partners with average capital balances during 2020 of P945,000, P477,300 and P324,700, respectively. The partners receive 10% interest on their average capital balances, salaries of P 244,650 to A and P 165,250 to C, any residual profit or loss is divided in the ratio 3:2:1. In 2020, the partnership had a net loss of P251,248 before the interest and salaries to partners. What is the change in the capital balance of
X. Y and Z are partners with average capital balances during 2020 of P945,000, P477,300 and P324,700, respectively. The partners receive 10% interest on their average capital balances, salaries of P 244,650 to X and P 165.250 to Z, any residual profit or loss is divided in the ratio 3:2:1. In 2020, the partnership had a net loss of P251,248 before the interest and salaries to partners. What is the share of Y in the balance after deducting interests and salaries? Put a parenthesis if your answer is a negative amount.
G, E and N are partners with average capital balances during 2020 of P400,000, P200,000 and P150,000respectively. Partners receive 10% interest on their average capital balances. After deducting salaries ofP100,000 to G and P50,000 to E the residual profit and loss is divided equally. In 2020 the partnershipsustained a P99,000 loss after interest and salaries to partners.By what amount should G's capital account change?A. 107,000 C. 32,000B. 67,000 D. 17,000
On April 1, 2020, Lana, Brent and Marie formed LBM Partnership with original contributions of P400,000, P100,000 and P500,000, respectively. The articles of co-partnership provides that profit or loss shall be distributed under the following terms: • Lana, Brent and Marie shall be entitiled to monthly salaries of P1,000, P2,000 and P3,000 each respectively. • 10% return on the original capital contribution. • As managing partner, Brent shall receive bonus equal to 20% of net income after salaries and interest but before bonus. • The remainder shall be distributed on the basis of original capital ratio. During the year, the partners regularly withdraw 1⁄4 of their monthly salary. The December 31, 2020 statement of financial position of LBM Partnership shows that the capital balance of Lana is P531,080. What is the share of Brent in the partnership net income? A. 108,038.75 B. 106,070 C. 105,820 D. 103,195
A and B formed a partnership on February 28, 2022 by contributing P430,000 and P570,000, respectively. The operations of the partnership for 2022 resulted to a profit of P375,000. Partners A and B agreed to the following allocation scheme: a. Weekly salary allowance of P1,000 is to be given to Partner A; b. 5% interest is to be credited to the partners; c. Bonus of 10% based on profit after salaries and interest to B. d. Residual income is to be allocated equally. How should the profit be allocated to A and B, respectively?
F, G, and H are partners with average capital balances during 2020 of P 120,000, and P 60,000, and P 40,000, respectively. Partners receive 10 percent interest on their average capital balances. After deducting salaries of P 30,000 to F and P 20,000 to H, the remaining profit or loss is divided equally. In 2020, the partnership sustained a P 33,000 loss before interest and salaries to partners. By what amount should F’s capital account change?
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)?
8. The partnership contract for Malicdem and Nabua Partnership provided that Malicdem is to receive an annual salary of P426,000, Nabua is to receive an annual salary of P284,000, and the remaining profit or loss is to be divided equally between the two partners. Net income of the Malicdem oupe and Nabua partnership for the year ended December 31, 2020 was P639,000. The closing entry for the net income on December 31, 2020 is a debit to Income Summary for P639,000 and credits to Malicdem Capital and Nabua Capital, respectively of ay! outin anc Duning 2,400 a. P383,400 and P255,600 b. P319,500 and P319,500 C. P426,000 and P284,000 d. P390,500 and P248,500 capite
X, Y, and Z formed a partnership on Jnauary 1, 2021, and contributed P150,000; P200,000; P300,000, respectively. Their articles of co-partnership provide that the operating income be shared among partners as follows: as salary, P24,000 for X; P18,000 for Y; and P12,000 for Z; interest of 12% on the average capital during 2021 of the three partners; and the remainder in the ratio of 4:2:4, respectively. The operating income for the year-end December 31, 2021 amounted to P200,000. X contributed additional capital of P30,000 on July 1, and made a drawing of P10,000 on October 1; Y contributed additional capital of P20,000 on August 1, and made a drawing of P10,000 on October 1; and Z made a drawing of P30,000 on November 1, 2021. How much is the capital balance at the end of partner X?
X, Y, and Z formed a partnership on Jnauary 1, 2021, and contributed P150,000; P200,000; P300,000, respectively. Their articles of co-partnership provide that the operating income be shared among partners as follows: as salary, P24,000 for X; P18,000 for Y; and P12,000 for Z: interest of 12% on the average capital during 2021 of the three partners; and the remainder in the ratio of 4:2:4, respectively. The operating income for the year-end December 31, 2021 amounted to P200,000. X contributed additional capital of P30,000 on July 1, and made a drawing of P10,000 on October 1; Y contributed additional capital of P20,000 on August 1, and made a drawing of P10,000 on October 1; and Z made a drawing of P30,000 on November 1, 2021. How much is the average capital of partner X?*
Part II: Problems 1. On January 1, 2021, Kaye, Erika and April formed a partnership with original capital contribution ratio or 4:5:1 for total agreed capitalization of P5,000,000. The profit or loss ratio agreement provides that profits shall be distributed in the ratio of 3:2:5 while losses shall be distributed in the ratio of 6:1:3. During 2021, the partnership reported net income of P2,000,000 with Kaye and Erika withdrawing P500,000 and P300,000, respectively. During 2022, the partnership reported net loss of P1,000,000 with Erika and April withdrawing P200,000 and P400,000 respectively. What is the adjusted capital balances of each partner on December 31, 2022?

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