(Subjective) (Capital & Current Accounts, Profit And Loss Appropriation Account.) Chong and Loh were inpartnership trading sharing profits and losses in the ratio 3:2 respectively. They agreed to allow interest oncapitals at 5% per annum and to charge interest on drawings at a rate of 10% per annum. Chong was thepartnership's manager and for his services he was credited with a salary of RM4,000 per annum. Chonghad guaranteed Loh a minimum annual income of RM3,000, after sharing partnership profits and beforededucting interest on drawings. During the year ended 30 April 1988, the net profit of the partnershiptrading was RM 10,000 and the partners' drawings were: Chong RM 500 Loh RM 900 On 31 December1987 Chong withdrew RM1,200 from his Capital Account and Loh put in a similar amount to his CapitalAccount. The following were the balances of the partners' accounts at 1 May 1987: Capital AccountsCurrent Accounts Chong RM6, 000(Cr) RM470(Cr) 5660 Loh RM3, 600(Cr) RM510(Cr) 3396,226 (1) thepartnership's Profit And Loss Appropriation Account for the year ended 30 April 1988; (2) the partners'Capital and Current Accounts as at 30 April 1988.

Profit and Loss Appropriation Account for the year ended 30 April 1988.DetailsRM RMNet Profit for…

Answered: (Subjective) (Capital & Current…

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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Item No. 22 is based on the following information: Kung and Fu are partners whose average capitals during 200B were P 500,000 and P 300,000, respectively. Their profit and loss sharing agreement had the following provisions: o Salaries: Kung, P 12,000 per month; Fu, P 15,000 per month; o 10% interest on the average capital; 12% bonus to Fu based on the profit after treating all allowances as expenses; and o Balance after allowances: Equally. 22. If the profit for the calendar year ended December 31, 200B was P 260,000, how much was the share of Fu? a. P 122,000. c. P 138,000. b. P 132,000. d. P 142,000.
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 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
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 and B are partners sharing profits in the ratio of 2 : 3. Their Balance Sheet shows machineryat Rs. 4,00,000; stock at Rs.80,000 and Debtors at Rs.3,20,000. C is admitted and new profit sharingratio is agreed at 6 : 9 : 5. Machinery is revalued at Rs.3,40,000 and a provision is made for doubtfuldebts @ 2.5%. A’s share in loss on revaluation amounted to Rs.20,000. Revalued value of stock willbe:
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 loss
A and B are partners sharing profits in the ratio of 2 : 3. Their Balance Sheet shows machineryat Rs. 4,00,000; stock at Rs.80,000 and Debtors at Rs.3,20,000. C is admitted and new profit sharingratio is agreed at 6 : 9 : 5. Machinery is revalued at Rs.3,40,000 and a provision is made for doubtfuldebts @ 2.5%. A’s share in loss on revaluation amounted to Rs.20,000. Revalued value of stock willbe: (a) Rs.98,000 (b) Rs. 1,00,000 (c) Rs. 60,000 (d) Rs.62,000
tephanie 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: Equal division In the ratio of original investments In the ratio of time devoted to the business Interest of 10% on original investments and the remainder in the ratio of 3:2 Interest of 10% on original investments, salary allowances of P340,000 to Calamba and P170,000 to Brillantes, and the remainder equally. 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 Question Stephanie Calamba and Allan Brillantes decided to form a partnership. They agreed that Calamba will invest…
Profit sharing to the Andara firm which got a loss of IDR 15,820,800, - which is a mustborne by Sani, Rina and Tika as allies involved. Profit formation and sharingin accordance with the agreement are as follows;1. Tika's share is 20% of profit / loss2. Sani and Rina get interest for the initial capital of IDR 2,500,0003. Sani gets a salary of IDR 100,000 / month and Rina IDR 150,000 / month4. The remainder is divided equally among Sani and Rina.Calculate the total partnership capital based on the profit sharing at the Andara firm!
Jpea, Jic, and Jfenix formed a partnership and named it ESBIEYEY. At the end of the year, the partnership earned a profit of P 1,000,000. The capital balances areP 250,000, P 280,000, and P 270,000 for Jpea, Jic, and Jfenix, respectively. The partners agreed to distribute the profit as follows: • Interest to ending capital of 10% will be given Jpea and Jic will be given a salary amounting to P 150,000 each Jfenix will be given a bonus of 10% of net income after interest, salary and bonus • Remaining profit is to be distributed equally 26. How much is the bonus given to Jfenix? c. P 67,000 d. P 60,909 а. р 62,000 b. Р 56, 364 27. How much is Jpea's share in net income? a. P 364,879 b. P 360,879 c. P 365, 879 d. P 362,879 28. How much is Jic's share in net income? a. P 364,879 b. P 360,879 c. P 365,879 d. P 362,879
Das, Bose and Gupta undertake to build a five storied mansion for National Housing Trust Ltd. The contract price is agreed at BDT 25,00,000 and to be paid in cash BDT 22,00,000 by four equal instalments and the balance amount in 8% Debentures of the company. They agree to share profit or loss in 2:2:1 ratio. They opened a joint banking account with the cash contributed as stated below: Das BDT 3,00,000; Bose BDT 3,75, 000 and Gupta BDT 2,00,000. Das arranges the preparation of building plans, and the like and pays BDT 32,000 as architects fees. Bose brings a concrete mixer and other implements valued at BDT 80,000 and Gupta brings a motor lorry valued at BDT 75,000. They paid in cash for the following items: Materials - BDT 12,26,800; Wages - BDT 7,33,200; Sundry Expenses - BDT20,000; and Plant - BDT 60,000 On completion of the venture the concrete mixer is sold for BDT 50,000 and the Plant and other implements are sold as scrap for BDT 10,000. Gupta takes back the motor lorry at BDT…
3 : A. In A Mudaraba contract , IFI contributed BD 150,000 to establish a company with Mr. Mohammed , the profit - sharing ratio was 60:40 Evaluate the two cases . 1 ) If after the first year the Mudaraba generate a profit of BD 90,000 , what's Mr. Mohamed share on profit out of this Mudaraba Answer : 2 ) If after the first year the Mudaraba had a Loss of BD 50,000 what's the impairment loss of the project investment incurred by IFI . Answer :
Item Nos. 20 and 21 are based on the following information: In its first year of operations, the partnership of Li, Kwan, and Yu earned a profit of P 300,000 before providing salaries of P 60,000 and P 40,000 per annum for Li and Kwan, respectively. Their capital contributions and profit and loss sharing ratio are as follows: Capital Profit & Loss Ratio Li - P 500,000 40% Kwan 300,000 30% Yu 200,000 30% Total-- P 1,000,000 100% 20. How much of the profit should be distributed to Kwan? P 140,000. a. P 60,000. C. b. P 100,000. d. P 150,000.

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