For the problem that requires computation of bonus after salary, interest and bonus, you may use the below formula:

B= (NI-Interest-Salary-Bonus)

Where: B = bonus % = Bonus percentage NI = Net Income

A. Partners OJ, Rolan and Jones had average capital account balances during the year of P1,600,000, P2,000,000 and P400,000 respectively. The partnership agreement provides for the following division of profits and losses:

Interest: 6% on average capital balances of each partner

Salaries: OJ P400,000; Rolan P600,000 and Jones none

Remainder: OJ 20%, Rolan 30%, and Jones 50%

How much is the partnership profit if the total share of OJ is P448,000?

B. The Articles of Partnership of Adam and Eve the following provisions were stipulated:

1. Annual salary of P60,000 each
2. Bonus to Adam of 20% of the net income after partners salaries
3. Balance to be divided equally

The partnership reported a net income of P360,000 after partners salaries but before bonus. How much is the share of Eve in the profit?

C. Cab and Jo are considering forming a partnership whereby profits will be allocated through the use of salaries and bonuses. Bonuses will be 10% of net income after total salaries and bonuses. Cab will receive a salary of P30,000 and a bonus. Jo has the option of receiving a salary of P40,000 and a 10% bonus or simply receiving a salary of P52,000. Both partners will receive the same amount of bonus.

Determine the level of net income that would be necessary so that Jo would be indifferent to the profit sharing option selected.

D. Jisoo, a partner in Blackpink partnership has a 30% participation in partnership profits and losses, Jisoos capital account has a net decrease of P960,000 during the calendar year 2021. During 2021, Jisoo withdrew P2,080,000 which was charged against his capital account ad contributed property with a fair value of P400,000 but with a carrying value of P320,000 to the partnership.

What was the profit (loss) of the partnership for 2021?

E. In the calendar year 2019, the partnership of A and B realized a net profit of P240,000. The capital accounts of the partners show the following postings

A B

Debit Credit Debit Credit

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

1. If the profits are to be divided based on average capital, the share of A is?

2. If 20% interest based on the capital at the end of the year is allowed and given and the balance of the P240,000 profit is divided equally, the total share of B is?

F. The Equity accounts of F. Santos and M. Cabrera at the end of the year follow:

F. Santos M. Cabrera

Jan 1 balance P640,000 P960,000

Investment March 28 P720,000

October 25 P320,000

Withdrawal September 4 P160,000

August 1 P80,000

The partnership operations resulted in a profit P480,000 for the year.

1. How much is the share of M. Cabrera in partnership profit assuming that profits and losses are divided according to average capital?

2. What is the average capital balance of F. Santos?

3. In the absence of any agreement, how much is the share of M. Cabrera in partnership profit assuming that any investment or withdrawal is considered temporary?