The partnership agreement of X, Y, and Z stipulates the following: Partners Y and Z shall receive annual salaries of P23,000 and P12,000, A bonus of 15% of profit after salaries but before deduction of bonus shall be given to Partner X, the managing Each partner shall receive 11% interest on average capital Any remaining profit or loss shall be shared as follows: 30% to X, and 35% each to Y and The average capital investments of the partners during the year are as follows: X – P125,000; Y – P78,000; and Z – P101,000. Case # 3: The partnership incurs a loss of P19,000. 1. How much is X's share in the profit/loss? a. (P 12,482) c. (P7,494) b. P 976 d. (P 19,000) 2. How much is Y's share in the profit/loss? a. (P 12,482) b. P 976 c. (P7,494) (P 19,000) 3. How much is Z's share in the profit/loss? a. (P 12,482) c. (P7,494) b. P 976 d. (P 19,000)
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
The
- Partners Y and Z shall receive annual salaries of P23,000 and P12,000,
- A bonus of 15% of profit after salaries but before deduction of bonus shall be given to Partner X, the managing
- Each partner shall receive 11% interest on average capital
- Any remaining profit or loss shall be shared as follows: 30% to X, and 35% each to Y and
The average capital investments of the partners during the year are as follows: X – P125,000; Y – P78,000; and Z – P101,000.
Case # 3: The partnership incurs a loss of P19,000.
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1. How much is X's share in the profit/loss? |
|
|
|
a. (P 12,482) |
c. |
(P7,494) |
|
b. P 976 |
d. |
(P 19,000) |
|
2. How much is Y's share in the profit/loss? |
|
|
|
a. (P 12,482) b. P 976 |
c. |
(P7,494) (P 19,000) |
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3. How much is Z's share in the profit/loss? |
|
|
|
a. (P 12,482) |
c. |
(P7,494) |
|
b. P 976 |
d. |
(P 19,000) |
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