10. A, B, and C are partners and share profits and losses as follows: Salaries of P40,000 to A; P30,000 to B; and none to C. If net income exceeds salaries, then a bonus is allocated to A. The bonus is 5 percent of net income after deducting salaries and the bonus. Residual profits or residual losses are allocated 10 percent to A. 20 percent to B, and 70 percent to C. If net income before salaries and bonus is P140,000, how much is the share of A? A. 50,000 C. 44,000 D. 46,667 B. 47,000

10. A, B, and C are partners and share profits and losses as follows: Salaries of P40,000 to A; P30,000 to B; and none to C. If net income exceeds salaries, then a bonus is allocated to A. The bonus is 5 percent of net income after deducting salaries and the bonus. Residual profits or residual losses are allocated 10 percent to A. 20 percent to B, and 70 percent to C. If net income before salaries and bonus is P140,000, how much is the share of A? A. 50,000 C. 44,000 D. 46,667 B. 47,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

12. Partners Maramba and Pasac have a profit and loss agreement with the following provisions: salaries of P30,000 and P45,000 for Maramba and Pasac, respectively; a bonus to Maramba of 12% of net income after salaries and bonus; and interest of 10% on average capital balances of P50,000 and P65.000 for Maramba and Pasac, respectively. One-fourth of any remaining profits are allocated to Maramba and the balance to Pasac. If the partnership had net income of P108,600, how much should be allocated to Partner Maramba? a. P43,225 b. P43,816 C. P47,850 d. P65,375 13. In the preceding problem, how much should be allocated to Pasac? a. P43,225 b. P43,816 C. P47,850 d. P65,375
8. The Soliman and Palaganas Partnership agreement provides for Soliman to receive a 20% bonus on profits before the bonus. Remaining profits and losses are divided between Soliman and Palaganas in the ratio of 2:3, respectively. Which partner has a greater advantage when partnership has a profit or when it has a loss? Profit Loss а. Soliman Palaganas b. Soliman Soliman Palaganas Palaganas С. Soliman d. Palaganas 9. At the beginning of 2019, the statement of financial position for EasyPage Company, showed the following balances in the partners' capital accounts: Rivera, P24,000 and Rosario, P26,000. Rivera and Rosario share profits and losses in a 3:7 ratio. During 2019, EasyPage experienced a P40,000 loss. Rivera withdrew P10,000 from the partnership during the year and Rosario withdrew P18,000. What will be the balance in Rivera's capital on Dec. 31, 2019? P 3,600 b. Р 2,000 с. Р12,000 d. P26,000 а. 10. On Jan. 1, 2019, Demafiles and Barbosa decided to form a partnership. At the end…
23. How much is the bonus of C if the bonus is based on the profit after bonus Item Nos. 23 and 24 are based on the following information: iw a1enhsq erts lle animuzaA .2 C, D, and E are partners sharing profits equally after allowing for bonus and salary allowances. C, the managing partner, is allowed a bonus of 20% of the profit. D and E are allowed salaries of P 120,000 and P 150,000, respectively. The partnership registered a profit of P 720,000 for the year 200C. but before the salary allowance? P 120,000.00,08 d. P 144,000. С. а. P 75,000. b. P 90,000. 24. How much is the share of C in the profit if the bonus is based on the profit before bonus but after the salary allowance? c. P 230,000. С. а. P 90,000. b. P 210,000. d. P 240,000. 000.002
AB Partnership’s operation for the year 2022 resulted in a profit of P180,000. Their profit sharing agreement provided the following:a. Salaries of P15,000 and P25,000 is to be given to A and B respectively;b. 15% of profit after salaries but before bonus is to be given to Partner B;c. The balance is to be divided using the 3:2 ratio, respectively.How much profit is to be allocated to B?
6. Martinez is trying to decide whether to accept a salary of P60,000 or a salary of P25,000 plus a bonus of 20% of net income after salaries and bonus as a means of allocating profit among the partners. Salaries traceable to the other partners are estimated to be P75,000. What amount of income would be necessary so that Martinez would consider the choices to be equal? a. P175,000 b. P210,000 C. P285,000 d. P310,000
Partners A, B, and C have a profit and loss agreement with the following provisions: salaries of $13,000 and $12,000 for A and C, respectively; a bonus to C of 10% of net income after bonus; and interest of 6% on ending capital in excess of $100,000. Ending capital balance is $80,000 for A, $150,000 for B, and $110,000 for C. Remaining profit/loss is allocated to A, B, C in the ratio of 2:1:1. If the partnership had net income of $22,000, how much should be allocated to Partner C? a. 12,450 b. 14,600 c. 8,700 d. 850
Partners A, B, and C have a profit and loss agreement with the following provisions: salaries of $13,000 and $12,000 for A and C, respectively; a bonus to C of 10% of net income after bonus; and interest of 6% on ending capital in excess of $100,000. Ending capital balance is $80,000 for A, $150,000 for B, and $110,000 for C. Remaining profit/loss is allocated to A, B, C in the ratio of 2:1:1. If the partnership had net income of $22,000, how much should be allocated to Partner C? Select one: 14,600 8,700 850 12,450
and B formed a partnership. The partnership agreement stipulates the following:
11. A, B and C are partners with the following contribution.A=60,000 B=20,000 C =20,000 and services. If there is no stipulation as to the profit sharing, and the partnership profit is P90,000. How much is their participation? (It was determined that P30,000 is just and equitable for the services of C) A=45,000 B=22,500 C =22,500 A=36,000 B=42,000 C =12,000 A=54,000 B=18,000 C =18,000 A=36,000 B=12,000 C =42,000 12. The organization or formation of the partnership is followed by other contracts to carry out its purpose. Which characteristic of the Contract of partnership is this? Preparatory Onerous Principal Bilateral 13. Statement I: General Rule, if a managing partner received money from a third person who owes the partnership and the managing partner, the amount received must be applied first to the obligation to the managing partner. Statement II:General Rule, if a managing partner received money from a third person who owes the partnership and the managing partner, the money…
1. Partners MM and LL have profit and loss agreement with the following provisions: salaries of P30,000 and P45,000 for MM and LL, respectively; a bonus to MM of 10% net income after salaries and bonus; and interest of 10% on average capital balances of P20,000 and P35,000 for MM and LL, respectively. One-third of any remaining profits will be allocated to MM and the balance to LL. If the partnership had a net income of P104,500, how much should be allocated to MM, assuming the provisions of the profit and loss agreement are ranked by order of priority, starting with salaries?2. Renalie and Ben are partners who share profits and losses in the ratio of 6:4, respectively. On June 1, 20X2, their respective capital accounts were as follows:• Renalie - P60,000 • Ben - P50,000On the same date, Jeremiah was admitted as a partner with 1/5 interest in capital and profits for an investment of P40,000. What is the capital of Ben after Jeremiah’s admission if the partnership began with a total…
2. Use the following information for the next three cases: The partnership agreement of A, B and C stipulates the following: Partners A and C shall receive annual salaries of P12,000 and P8,000, respectively. DA bonus of 10% of profit after salaries but before deduction of bonus shall be given to Partner A, the managing partner. Each partner shall receive 10% interest on average capital investments. TAny remaining profit or loss shall be shared as follows: 40% to A and 30% each to B and C. The average capital investments of partners during the year are as follows: AP100,000 B 60,000 C 120,000 Case #1: The partnership earns profit of P100,000. Requirement: Compute for the respective shares of the partners on the partnership profit. Case #2: The partnership earns profit of P10,000. Requirement: Compute for the respective shares of the partners on the partnership profit. Case #3: The partnership incurs loss of P20,000. Requirement: Compute for the respective shares of the partners on the…
Partners A, B and C are contemplating using the following profit distribution plan: Salary is to be given to A in the amount of P60,000, with the remainder in an equal rates to all partners. A is guaranteed a minimum profit share of P100,000. a) Profit for the first year is P240,000 b) Profit for the second year is P150,000. Compute for the profit share of partners B and C in both years.