5. AA, BB and CC are partners with average capital balances during 2021 of P360,000, P180,000, and P120,000, respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of P90,000 to AA and P60,000 to CC the residual profit and loss is divided equally. In 2021 the partnership sustained a P99,000 loss before interest and salaries to partners. By what amount should AA's capital

5. AA, BB and CC are partners with average capital balances during 2021 of P360,000, P180,000, and P120,000, respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of P90,000 to AA and P60,000 to CC the residual profit and loss is divided equally. In 2021 the partnership sustained a P99,000 loss before interest and salaries to partners. By what amount should AA's capital

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
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
X, 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:
AA, BB and Cc are partners with average capital balances during 2021 of 360,000, 180,000 and120,000 respectively. Partners receive 10% interest on their average capital balances. After deductingsalaries of 90,000 to AA and 60,000 to CC the residual profit or loss is divided equally. In 2021, thepartnership sustained a 99,000 loss before interest and salaries to partners. By what amount shouldAA’s capital account change?a. 21,000 increaseb. 33,000 decreasec. 105,000 decreased. 126,000 increase
AA, BB and CC formed a partnership on January 1, 2022. Their capital balances before share in profit or loss on December 31 were P300,000, P400,000 and P500,000, respectively. The partnership agreement provides for the following manner of distributing profits: Monthly salaries for AA, BB and CC of P4,00O, P3,000 and P2,000, respectively • 12% interest based on the weighted average capital Residual profit to AA, BB and CC in the ratio of 2:4:4, respectively The partnership profit for the year 2022 amounted to P350,000. During the year, AA contributed additional capital of P60,000 on July 1 while BB contributed P40,000 on March 30. AA and BB made permanent withdrawals capital on October 1 of P2,000 each while CC withdrew P36,000 on October 31. How much is the share of AA in the partnership net income?
X, Y and Z are partners sharing profits in the ratio 3:21, respectively Capital accounts are P 500,000, P300,000 and P 200,000 for X, Y and Z, respectively on December 31, 2021, when Z decided to withdraw. It is agreed to pay P 300,000 for Z's interest. Profits after the retirement of Z are to shared equally Assuming the use of bonus method, how much is the capital balance of X after the retirement of 2
4. In 2021, X, Y, & Z are partners with average capital balances of P120,000, P60,000, and P40,000, respectively. The partners receive 10% interest on their average capital balance. After deducting salaries of P30,000 to X and P20,000 to Y, the residual profit or loss is devided equally. During the year the partnership sustained a loss of P33,000, before interest and salaries to the partners. By what amount should X's capital account change? *
For the year 2021, the partnership of AMMAR and BANU realized a net profit of P240,000. The capital accounts of the partners show the following postings: Jan. 1 May 1 July 1 Aug. 1 Oct. 1 AMMAR Debit Credit Debit Credit 20,000 10,000 120,000 BANU 10,000 10,000 5,000 80,000 20,000 Question 5 If the profits are to be divided based on average capital, how much will be the share of AMMAR?
AA, BB and CC formed a partnership on January 1, 2022. Their capital balances before share in profit or loss on December 31 were P300,000, P400,000 and P500,000, respectively. The partnership agreement provides for the following manner of distributing profits: Monthly salaries for AA, BB and CC of P4,000, P3,000 and P2,000, respectively 12% interest based on the weighted average capital Residual profit to AA, BB and CC in the ratio of 2:4:4, respectively The partnership profit for the year 2022 amounted to P350,000. During the year, AA contributed additional capital of P60,000 on July 1 while BB contributed P40,000 on March 30. AA and BB made permanent withdrawals of capital on October 1 of P2,000 each while CC withdrew P36,000 on October 31. How much is the ending capital of BB as of December 31, 2022?
Partners A and B formed a partnership on January 1, 2020 where Partner A invested P500,000 while Partner B invested P300,000. Profit and loss as agreed upon by partners is to be shared in the ratio of the original capital. The drawing accounts of Partners A and B have debit balances of P24,000 and P12,000 respectively. Net income for the period ending December 31, 2020 amounted to P180,200. What is capital balance of Partner B for the year ending December 31, 2020?
On January 1, 2020, X and Y have capital balances of P 50.000 and P 100.000. Partner X made monthly withdrawals of P 1,000 while Y made monthly withdrawals of P 1.500. Partners profit and loss agreement were as follows: 1. Annual salaries of P 60.000 for X and P 40.000 for Y 2. 10% interest on beginning capital 3. Remainder are shared equally. If the partnership capital at the end of the year is P225,000, the partnership profit (loss) for the year amounted to Place a parenthesis if net loss.
On March 1, 2020, JM and KK formed a partnership with each contributing the following assets (see attached image) 1. The building is subject to mortgage loan of P800,000, which is to be assumed by the partnership agreement provides that JM and KK share profits and losses 30% and 70%, respectively. On March 1, 2020 the balance in KK's capital account should be: A. 3,700,000 C. 2,900,000B. 3,045,000 D. 2,485,000 2. Assume that the mortgage loan is not assumed by the partnership and the partners agree to withdraw or contribute additional cash to make their capital balances agree with their profit and loss ratio. On March 1, how much cash should be invested/(withdrawn) by KK? A. (1,215,000) C. (655,000)B. (415,000) D. 655,000