bonus. The remainder is shared in the ratio of 7:2. Sheehan's share in partnership profit for the year was P296,000. How much was the partnership profit before Billy's salary and bonus? a. 1,580,000 c. 1,751,348 b. 1,672,342 d. 1,420,000 7. A&B Partnership earns profit of P240,000 in 20x1. The movements in the capital accounts of the partners are shown below: A, capital B, capital Dr. Cr. Dr. Cr. Jan. 1 120,000 80,000 May 1 20,000 10,000 July 1 20,000 Aug. 1 10,000 Oct. 1 10,000 5,000 How much is the share of A if profits are to be divided based on average capital? a. 108,333 c. 103,457 b. 121,500 d. 136,543 (RPCPA) 8. Partner A first contributed P50,000 of capital into an existing partnership on March 1, 20x1. On June 1 20x1, Partner A contributed another P20,000. On September 1, 20x1, Partner A withdrew P15,000 from the partnership. Withdrawal in excess of P10,000 is charged to the partner's capital account. The annual interest rate applicable to capital contributions is 12%. How much is the interest on the weighted average capital balance of Partner A in 20x1? a. 6,200 c. 7,567 b. 6,667 (AICPA) d. 8,9939. A and B share in partnership prots and losses on a 40:60 ratio. During the year, A's capital account had a net increase of -l'50,000. Partner A made contributions of 1'10,000 and capital withdrawals a 00,000 during the year; How much was the share of B in the partnership prot for the year? a. 100,000 ~ _ a. 200,000 - h. 150,000 0.130.001 I Balance to be divided equally. The partnership earned prot of P480000 before partners" salaries .' and bonus. How much is the total share of A, including salary and bonus? _ _ ' a. 270,000 0. 230,000 b. 250,000 . a. 210,010 [MAJ _ . PROBLEM 4: MULTIPLE CHOICE - COMPUTATIONAL 1. A and B formed a partnership. The partnership agreement stipulates the following: Annual salary allowances of P80,000 for A and P40,000 for B. The partners share profits equally and losses on a 60:40 ratio. During the period, the partnership earned profit of P100,000. How much was the share of A? a. 72,000 c. 52,000 b. 68,000 d. 32,000 2. A, B and C are partners, sharing in partnership profits in the ratio of 2:3:4. A, the managing partner, is entitled to an annual salary of P80,000 and a 10% bonus on profit after deducting the salary but before deducting the bonus. The partnership earned profit of P560,000. How much is the share of A? a. 214,400 c. 224,000 b. . 196,000 d. 189,667 3. The partnership agreement of A, B and C stipulates the following: . A, the managing partner, shall receive a bonus of 10% of profit.Each partner shall receive a 6% interest on average capital investments. . Any remaining profit or loss shall be shared equally. The average capital investments of the partners during the year were P80,000 for A, P50,000 for B, and P30,000 for C. The partnership earned profit of P100,000 during the period. How much was A's share? a. 23,800 c. 29,800 b. 28,600 d. 41,600 (AICPA - adapted) 4. A and B's partnership agreement stipulates the following: Annual salary allowance of P100,000 for A. Bonus to A of 10% of the profit after partner's salaries and bonus. . The partners share in profits and losses on a 60:40 ratio. The partnership incurred loss of P40,000 before deduction for salaries. How much is the change in A's capital account? a. 56,000 decrease c. 16,000 increase b. 15,000 decrease d. 9,000 increase 5. In its first year of operations, A and B's partnership business earned profit of P2,500,000. It was agreed that A is to have an annual salary allowance of P100,000 and a 20% bonus based on profit after deducting the salary and the bonus. However, there has been no stipulation on how the remaining profit is to be shared between A and B. A contributed P300,000, while B contributed P500,000. How much is the share of B? a. 1,250,000 c. 1,350,000 b. 1,060,000 d. 1,080,000 6. Billy and Sheehan are partners in Bass Co. Their partnership agreement states that Billy is entitled to an annual salary of P100,000 and a bonus of 10% of profit after salary but before