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1. F. 1. Assume that on January 1, 2013, Dada and Elma formed a partnership with an investment of P50,000 by Dada and P80,000 by

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1. F.\" 1. Assume that on January 1, 2013, Dada and Elma formed a partnership with an investment of P50,000 by Dada and P80,000 by Elma- On December 31, 2013, after closing all income and expense accounts, the Income Summary account shows a credit balance P80,000, representing the prot for the year 2013. Changes in the capital accounts during 2013 are summarized as follows: Dada Elma Capital balances, beg 50000 80000 Additional Investments, March 1 40000 70000 Additional Investments, July 31 40000 60000 Withdrawal, September - 30 40000 Wlthdrawal, November 1 70000 Required: Prepare the joumal entries to record the distribution of prot among partners under the different independent situations (show supporting computations): a. The partners agreed to divide prots and losses in the ratio of 60% to Dada and 40% to Elma. b. C. No agreement was made by the partners regarding the ratio for distribution of prots and losses. The partnership agreement provides to divide prots and losses among the partners in the ratio of average capital balances during the year. The capital accounts of Brian and Dom show the following facts for the scal year ended December 31, 201 3: Bryan Dom 1' Balance 260,000 1' Balance 165,000 Jan Jan 30- 18- Mar Investment 30,000 May Investment 50,000 10' investment 70,000 24' Withdrawal 20,000 May Aug 25' Withdrawal 40,000 31' Balance 195,000 Jul Dec 31- Dec Balance 320,000 The Income Summary account shows a credit balance of P238,000 on December 31 - Required: Prepare a schedule of prot distribution and the joumal entries to record the distribution of prot under the following independent agreements on the division of prots. In the rao of investments at the beginning of the scal period. In the ratio of average capitals, investments and withdrawals are to be considered as made at the beginning of the month if made before the middle of the month, and are to b considered as made at the beginning of the following month if made after the middle of the month. Interest of 24% on average capitals, salaries to Brian and Dom of P360,000 and P240,000, respectively, and any balance equally. Investments and withdrawals are to be considered as in (b). 999'.\" Allowance to Brian of a bonus of 25% of the net prot after the bonus: interest of 10% to be allowed on the excess of the average investment [simple average) of one partner over that of the other, and any balance in the ratio of 3:2 to Brian and Dom. respectively. Salaries of P30.000 and P211000 a month to Brian and Dom. respectively provided annual earnings are sufficient to cover the allowance; if earnings are insufcient the profit shall be distributed in the salary ratio: if operations result in loss. it shall be distributed equally. . The partnership of Sanitand 2959 has a net income of P190200 before salaries. interest and bonus to partners. The Articles of Clo-partnership provides for the following: Salaries to Sanitand 29m. P30.000 each. Interest on capital account balances 5am; P7.000 Zorn 3.200 Bonus to ayji. 20% of net income Remaining prot or loss after salaries. interest and bonus. equally. Compute for the share of the partners in the net income of P190200 if the bonus is computed based on: Net income before allowances for salaries, interest and bonus Net income before allowances for salaries and interest, but after bonus Net income after allowances for salaries and interest, but before bonus Net income after allowances for salaries, interest and bonus Luigi. Mario and Princess Peach are partners with capitals of P40.000, P25.000 and P15.000. respectively. The partnership agreement provides that each partner shall be allowed 5% interest on his capital, that Luigi shall be allowed an annual saiary of P8500. and Mario shall be entitled to a minimum of P14.000 per annum including amounts allowed as interest on capital and as share of prot Prot after interest and salary allowances is to be divided between Luigi, Mario and Princess Toadstool 5:3:2. respectively. What amount must be earned by the partnership during 2013 before charges for interest or salary if Luigi is to receive an aggregate of P201100 to include interest salary and share of prot? Bel and Eden are partners in a trading company. During 2013, they withdrew their salary allowances of P200.000 and P300300. respectively. Prots and losses are shared in the ratio of 3:2. The income summary account before any prot allocation has a credit balance of P600300. The partners: capital accounts show the following: Bel Eden Beginning balances 600.000 400.000 Additional investments 100.000 200.000 WW other than salary (200,000) (1001000) allowances What are the wpital balances of the partners for the year 2013 after closing Income Summary and the Withdrawal accounts

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