A, B, and C are partners in an accounting firm. Their capita account balances at the year-end were A P120,000; B P140,000; C P80,000. They share profits and losses on a 3:3:4 ratio, after the following special terms: • Interest of 10% shall be paid on that portion of a partner's capital in excess of P100,000. • Quarterly salaries of P5,000, P5,000 and P6,000 shall be paid to partners A, B, and C, respectively. • Partner C is to receive a bonus of 10% of net income after salaries, interest and bonus. Assuming a net income of P60,000 for the year, the total profit share of partner C was:
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- A, B, and C are partners in an accounting firm. Their capital account balances at the year-end were A P120,000; B P140,000; C P80,000. They share profits and losses on a 3:3:4 ratio, after the following special terms: Interest of 10% shall be paid on that portion of a partner's capital in excess of P100,000. Quarterly salaries of P5,000, P5,000 and P6,000 shall be paid to partners A, B, and C, respectively. Partner C is to receive a bonus of 10% of net income after salaries, interest and bonus. Assuming a net income of P60,000 for the year, the total profit share of partner C was:2. Rene, Michael, and Kevin are partners in an accounting firm. Their capital accountbalance at year-end were Rene, P90,000; Michael, P120,000; and Kevin,P160,000. They share profit and losses on a 4:4:2 ratio after considering thefollowing terms: a. Kevin is to receive a bonus of 10% of net income. b. Interest of 5% shall be paid on partner’s capital. c. Salaries of P8,000 and P10,000 shall be paid to partners Rene and Kevinrespectively. Assuming a net income of P84,000 for the year. REQUIRED: Prepare the following:A. Profit or Loss Distribution TableB. Corresponding JOURNAL ENTRY to distribute profit or loss3. Bunag, Belen, and Bustos are partners in an accounting firm. Their capital account balances at year-end were P180,000, P220,000, and P100,000, respectively. They share profits and losses on a 4:4:2, ratio respectively, after considering the following terms: a. Bustos is to receive a bonus of 10% of profit after deducting bonus b. Interest of 10% shall be paid on that portion of a partner’s capital in excessof P200,000. c. Salaries of P20,000 and P24,000 shall be paid to partners Bunag and Bustos,respectively. Assuming a profit of P220,000 for the year. REQUIRED: Prepare the following:A. Profit or Loss Distribution TableB. Corresponding JOURNAL ENTRY to distribute profit or loss
- A, B and C are partners in the accounting firm. Their capital account balances at year end were:A - P 90,000B- P 110,000C- P 50,000.They share profits and losses in a 4:4:2 ratio, after the following special terms:1. Partner C is to receive a bonus of 10% of the net income after bonus.2. Interest of 10% shall be paid on that portion of a partner's capital in excess of P 100,0003. Salaries of P 10,000 and P 12,000 shall be paid to partners A and C, respectively.Assuming a net income of P 44,000 for the year, the total profit share of partner C would be:Carmella and Luciana practice in partnership as accountants. Interest on fixed capital balances is allowed at 8% per annum and the remaining profits are shared equally. The following Trial balance was extracted from the ledger at the year ended 31st December 2020: Sh. Sh. Bank 294,000 Fixed capital: Carmella 1,500,000 Luciana 800,000 Current Accounts: Carmella 68,000 Luciana 74,000 Fees invoiced to clients…A, B and C are partners in an accounting firm. Their capital account balances at year-end were: A, P90,000; B, P110,000; C, P50,000. They share profits and losses in a 4:4:2 ratio, after the following special terms:Partner C is to receive a bonus of 10% of the net income after the bonus.Interest of 10% shall be paid on that portion of a partner’s capital in excess of P100,000.Salaries of P10,000 and P12,000 shall be paid to partners A and C, respectively.Assuming a net income of P44,000 for the year, the total profit share of partner C would be: a. P7,800 b. P16,800 c. P19,400 d. P19,800 A local partnership has assets of cash of P5,000 and a building worth P80,000. All liabilities have been paid and the partners are all insolvent. The partners capital accounts are as follows Harry P40,000, Landers P30,000 and Waters 15,000. The partners share profits and losses 4:4:2. If the building is sold for P50,000, how much cash will Waters receive in the…
- Item No. 19 is based on the following information: On January 1, 200C, Bee and Gees had capital balances of P 250,000 and P 200,000, respectively. Their profit and loss sharing agreement has the following provisions: Annual salary of P 200,000 to Gees and P 90,000 to Bee; 10% interest on the opening capital; O The remainder of the profit is to be divided equally. 19. If the profit for the year 200C was P 120,000, how much was the share of Bee? a. P 62,500. c. P112,500. b. P 87,500. d. P 117,500.A, B and C share profits and losses in the ratio of 3:2:1. C is to receive a salary of K30, 000 as managing partner, and interest at the rate of 15% p. a is to be charged on drawings. Further, Interest to be earned by partners on their capital contributed. The following are the results of the profits and losses appropriated for the current year. Net profit K200, 0000 Salary K30, 000 Interest on drawings A K10, 000 B K8, 000 C K7, 000 Interests on capital A K20, 000 B K15, 000 C K15, 000 You are required to calculated the partners share of taxable income for tax purposes.Distribution of Profits and Losses: 3. Bunag, Belen, and Bustos are partners in an accounting firm. Their capital account balances at year-end were P180,000, P220,000, and P100,000, respectively. They share profits and losses on a 4:4:2, ratio respectively, after considering the following terms: a. Bustos is to receive a bonus of 10% of profit after deducting bonus b. Interest of 10% shall be paid on that portion of a partner's capital in excess of P200,000. c. Salaries of P20,000 and P24,000 shall be paid to partners Bunag and Bustos, respectively. Assuming a profit of P220,000 for the year. REQUIRED: Prepare the following: A. Profit or Loss Distribution Table B. Corresponding JOURNAL ENTRY to distribute profit or loss
- Partners R and S receive a salary allowance of P3,000 and P7,000, respectively, and share the remainder equally. If the company earned P4,000 during the period, the entry to close the income or loss into their capital accounts is: a. Income Summary R, Capital S, Capital b. Income Summary S, Capital c. Income Summary R, Capital S, Capital d. Income Summary R, Capital S, Capital Ο Ο Ο Ο O A O D 10,000 4,000 14,000 6,000 3,000 7,000 4,000 7,000 7,000 3,000 3,000X, Y, and Z are partners sharing profits and losses in the ratio of 5:3:2. During the year, their investments and withdrawals are as follows: Investment of X, Y, and Z for P200,000, P175,000 and P375,000 respectively. Withdrawals of X, Y, and Z amounting to P125,000, P62500 and P62,500 respectively. On December 31, 2021, the partners decided to liquidate their business. After exhausting partnership assets, liabilities of P125,000 remain unpaid. X is personally insolvent. The gain or loss on realization is:PJ, Ian, and Lemuel are partners in an accounting firm. Their capital account balances at year-end were PJ, P180,000; Ian, P220,000; and Lemuel, P100,000. They share profits and losses on a 4:4:2 ratio, after the following special terms: 1) Partner Ian is to receive a bonus of 10% of net income after the bonus. 2) Interests of 10% shall be paid on that portion of a partner's capital in excess of P200,000. 3) Salaries of P20,000 and P24,000 shall be paid to partners PJ and Lemuel, respectively. Assuming a net income of P88,000 for the year, the total profit share of partner Lemuel was: