During the year, the ABC partnership's operations generated a loss. The partnership agreement provides for the following P/L sharing provisions: Interest of P2,000, P3,000, and P5,000 to partners A, B, and C, respectively Salary of P15,000 to partner A Any remainder is allocated equally. freshma freshman freshma If the share of partner A in the loss is P8,000, how much is the net loss for the period?

During the year, the ABC partnership's operations generated a loss. The partnership agreement provides for the following P/L sharing provisions: Interest of P2,000, P3,000, and P5,000 to partners A, B, and C, respectively Salary of P15,000 to partner A Any remainder is allocated equally. freshma freshman freshma If the share of partner A in the loss is P8,000, how much is the net loss for the period?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 20P

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During the year, the ABC partnership’s operations generated a loss. The partnership agreement provides for the following P/L sharing provisions: · Interest of P2,000, P3,000, and P5,000 to partners A, B, and C, respectively · Salary of P15,000 to partner A · Any remainder is allocated equally. If the share of partner A in the loss is P8,000, how much is the net loss for the period?
Partners A and B have a profit and loss agreement with the following provisions: • Salaries of P30,000 and P45,000 for A and B, respectively; The interest of 10% on average capital balances of P50,000 and P65,000 for A and B, respectively. • One-fourth of any remaining profits are allocated to A and the ratio to B. If the partnership had a net income of 250,000, how much profit is allocated to Partner B? ●
X and Y are partners and have beginning capital balances of P 360,000 and P 600,000, respectively. Partnership profits and losses are allocated as follows: salaries of P 160,000 and P 200,000 to X and Y, respectively; 10% interest on their beginning capital balances, any remaining profit is divided equally. Partnership profit of P 600,000 is allocated as follows: a. X – P 300,000; Y – P 300,000 b. X – P 280,000; Y – P 320,000 c. X – P 268,000; Y – P 332,000 d. X – P 192,000; Y – P 408,000
A enters a partnership by contributing the following: . Cash P2,000,000. • Accounts Receivable P400,000; • Land costs P240,000, P400,000 fair market value with an agreed value of P350,000; and Accounts Payable P160,000. The partnership assumed that 10% of Accounts Receivable is deemed uncollectible. Compute the adjusted capital account of A after the formation.
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And B formed a partnership. The partnership agreement stipulates the following:* Annual salary allowances of P100,000 for A and P40,000 for B.* Bonus to A of 10% of the profit after partners' salaries but before deducting the bonus.Case 1: The partnership earned profit of P50,000Requirement: Compute for the respective shares of the partners in the profit.Case 2: The partnership incurred a loss of P20,000.Requirement:a. Compute for the respective shares of the partners in the profit.b. By what amount did A's capital account change?"
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According to Profil and Loss Account, the net profit for the year is OMR250,000. The total interest on partner's capital is OMR BOLO00 and interest on partner's drawings is OMR 30.000 The net profit as per Profit and Loss Appropriation Account will be OMR 110.000 (Prolit) OMR 200,000(Loss) OMR 200,000(Protit) OMR 200000 (Profit)
2. A and B's partnership agreement provided for annual salary allowances of P160,000 for and P80,000 for B. Profits are shared equally, while losses on a 70;30 ratio. The partnership earned profit of P200,000. Requirement: Compute for the respective shares of the partners in the profit.
A, B and C are partners in ABC partnership. A and B contributed P10,000 each while C contributed his service. After payment of the partnership liabilities to creditors, only P15,000 remains. In the absence of stipulation to the contrary the share of C shall be: a. Zero b. P5,000 c. P10,000 d. P5,000