• .A. Prof, Sir, and Idol have the following capital accounts in their partnership for 2022: Prof Sir IdolJanuary 1, Balance P80,000 P 100,000 P 60,000 February 28, Investment 30,000 75,000 April 14, Withdrawal 10,000 40,000 July 1, Withdrawal 25,000 September 23, Investment 22,00020,00036,000Before any allocation, the profit for the year was P169,400. Interest for each partner amounts to 10% of the weighted average capital balances. The annual salaries of Prof, Sir, and Idol are P15,000, P25,000, and P10,000, respectively. Sir receives a bonus of 20% of profit after deducting the bonus, interest, and salaries. Any remainder is divided in a 2:2:1 ratio by Prof, Sir, and Idol, respectively.QUESTION 1. How much did Idol receive as his share in the partnership profit?B. Emo and Ted are partners engaged in a manufacturing business. Transactions affecting the partners' capital accounts in 2022 are as follows: EMO TED Debit Credit Debit CreditJanuary 1 P 50,000 P 70,000April 1 30,000 P 20,000 June 30 P 25,000 50,000September 1 45,000 60,000October 1 70,000 40,000 The income summary has a debit balance of P45,000.The agreement between Emo and Ted includes the following terms:• Interest on average capital at 8%; • Salaries of P25,000 and P35,000 are given to Emo and Ted respectively;• Bonus to Ted at 25% of net income after deducting interest and salaries but before deducting bonus, and • Balance is to be divided equally.QUESTION 2: How much is the net increase/decrease in Ted's capital account during 2022?C. AUBRRIS Trading was organized and began operations on May 1, 2021 Aubrey invested P1,000,000 cash on that date, and Morris invested land and building with current fair values of 1,750,000 and 850,000, respectively. The average capital balances of Aubrey and Morris were determined to be P1,223,890 and P1,222,090, respectively. The partnership contract includes the followingThe profit or loss-sharing agreement is as follows. Aubrey MorrisAnnual Salaries 152,200 151,800Annual Interest on the average capital 20% 30%Remainder 60% 40%During the fiscal year ended April 30, 2022, the partnership had net sales of P3,000,000, cost of goods sold of P1,000,000, and operating expenses of P391,090. The partnership recorded the partners' salaries as part of the operating expenses.QUESTION 3. How much is the total share of Aubrey in the profit for the period?D. CD partnership begins its first year of operations with the following capital balances. C. Capital, P224,000; D, Capital, P 112,000. The partners divide profits as follows: C and D will be allowed salaries of P 268,800 and P134,400 , respectively, the partners will be allowed 10% interest on the beginning capital balances; C will be allowed a bonus of 10% of the profit after the bonus, and the remainder will be divided as follows: based on the beginning capital for the first year and equally for the subsequent years. Each partner is allowed to withdraw up to P 11,200 per year.In the first year of operations, the income summary has a debit balance of P16,800 and a credit balance of P61,600 in the second year. Assume that each partner withdraws the maximum amount from the business each period.QUESTION 4: What is D's capital account balance at the end of the second year?E. Ruvi and Patrick are partners in a merchandising business. In 2022. they withdrew their salary allowances of P34,000 and P59,000, respectively Ruvi and Patrick share any remaining profit or loss in the ratio of 3:2, respectively. The income summary account before any profit allocation has a credit balance of P180,000. The partners capital accounts show the following: RUVI PATRICKBeginning balance 85,000 67,000Additional investments 40,000 43,000Withdrawal other than salary (35,000) (20,000)Ending balance 90,00090,000QUESTION 5: What is Patrick's equity balance at December 31, 2022 after dividing the profit?F. DGB and DSP are partners engaged in an export-import business Several transactions during 2022 affected the partners capital accounts, which are summarized as follows: DGB DSP Debit Credit Debit CreditBalances, Jan 1 P 600,000 P 800,000March 1 P 100,000 April 1 200,000May 1 100,000 June 30 150,000 August 31 100,000 October 1 150,000 October 31 125,000 50,000At the end of the year, the Income Summary account has a credit balance of P180,000.QUESTION 6: How much should DGB receive as his share If the partners divide profits and losses using the average capital ratio?QUESTION 7: Assume that the partners agreed on the following: interest on average capital at 8%; salaries of P24,000 and P48,000 to DGB and DSP, respectively; bonus to DGB at 20% of profit after deducting interest and salaries but before deducting bonus; and any remaining amount is divided equally. How much is the share of DSP in the profit?G. AGB and BDC formed a partnership on January 1, 2022. On this date, AGB contributed net assets of P600,000. On the other hand, BDC contributed no capital because he will manage the firm on a full-time basis. The partnership agreement provides for the following:a. Interest at 5% shall be allowed on the beginning capitalb. BDC is to be paid salaries of P20,000 per month.c. CBDC is to receive a bonus of 20% of profit computed before deducting interest, salaries, and bonusesd. AGB and BDC divide the remainder in the ratio of 7:3There are no withdrawals by either partner during the year. The partnership statement of income contains the following information:Revenues P 1,720,000 Expenses (including salary, interest and bonus) 840,000 Profit P 880,000QUESTION 8: How much is the bonus to BDC?QUESTION 9: What would be the equity balance of AGB at year-end?H. AJB, BWZ, and CYG are partners with average capital balances in 2022 of P240,000, P120,000, and P80,000, respectively. Partners receive 10% interest on their average capital balances. Salaries allowed to AJB and CYG are P60,000 and P40,000, respectively; the profit balance is to be divided equally. In 2022, the partnership sustained a P66,000 loss before interest and salaries to partners.QUESTION 10: How much is the share of CYG in the partnership loss?I. The capital accounts of ECV and ATR at the end of the year follow: ECV ATRJanuary 1 balance P 160,000 P 240,000Investments 3/28 180,000 10/25 80,000Withdrawals 9/4 40,000 8/1 20,000The partnership had a profit of P120,000 for the year. The partnership agreement provides that the profit shall be divided according to the average capital ratio.QUESTION 11: How much is the share of ECV in the profit for the year?J. Partners ORD, RFC, and JMK had average capital account balances during the year of P400,000, P500,000, and P100,000, respectively. The partnership agreement provides for the following division of profits and losses.Interest: 6% on average capital balances of each partner Salaries: ORD, P100,000; RFC, P150,000; and JMK, none Remainder: ORD, 20%: RFC, 30%; and JMK, 50%QUESTION 12: If the total share of ORD in the profit is P112,000, how much should have been the partnership profit?K. BDX, a partner in BBB Partnership, has a 30% participation in partnership profits and losses. BDX's capital account decreased by a net amount of P240,000 during the calendar year 2022. BDX withdrew P520,000, which the firm charged against his capital account. He also contributed property with a fair value of P100,000 but a carrying value of P80,000 in his booksQUESTION 13: What was the profit of the BBB Partnership for 2022?L. JVV and ADD's partnership agreement provides that each partner shall be credited 10% annual interest on average capital. JVV and ADD are provided monthly salaries of P48,000 and P72,000, respectively. Bonus at 20% of profits after interest, salaries, and bonus shall be credited to JVV. Any residual profit or loss is divided 60% to JVV and 40% to ADDThe partnership started operations on July 1, 2022 and uses the calendar year as its reporting period. The profit for the six months ended December 31, 2022, after interest and salaries, amounted to P96,000. The partners withdrawals for the six month period amounted to P25,000 each.QUESTION 14: If average capital balances of JVV and ADD are P240,000 and P360,000, respectively, how much is the bonus credited to JVV?QUESTION 15: If the average capital balances of JVV and ADD are P100,000 and P200,000, respectively, how much is the total share of ADD in the total profit?M. Partner S was credited with a salary of P120,000 and interest of P60,000 on his capital account. After taking the partners' salaries and interest on capital balances, the partnership charged P20,000 to S, Capital as his share in the resulting balance of the Income Summary account. Swithdrew P40,000 during the year.QUESTION 16: What amount will S report to the Bureau of Internal Revenue as his share in the partnership profit?
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