I.Din, Jon, and Flo form a partnership and agree to maintain average investments of P2,500,000, P1,250,000 and P1,250,000 respectively. The partners agree to divide profits and losses as follows:

a.Interest of 6% on the excess of deficiency in the capital investments.

b.Remainder to be shared in the ratio of 5:3:2 to Din, Jon and Flo respectively.

c.Average investments made during the first six months were as follows: Din, 3,000,000; Jon, 1,375,000; Flo, 1,000,000. A loss from operations of 62,500 was incurred for the six months.

Requirement:

How is this loss distributed among the partners?

II.Pine and Blun formed a partnership on January 2,2020, and agreed to share income 90% and 10% respectively. Pine contributed capital of 150,000. Blun contributed capital but has a specialized expertise and manages the firm full-time. There were no withdrawals during the year. The partnership agreement provides the following:

a.Capital accounts are to be credited annually with interest at 5% of beginning capital.

b.Blun is to be paid a salary of 3,000 a month.

c.Blun is to receive a bonus of 20% of income calculated before deducting his bonus, his salary, and interest on both capital accounts.

d.Bonus, interest and Blun's salary are to be considered as expenses

The partnership's 2020 Statement of Comprehensive Income shows the following:

Revenues650,700

Less Expenses (including salary, interest, and bonus) 235,450

Net Profit415,250

Requirement:

1.What is the amount of Blun's Bonus?

2.How is the partnership distributed between Pine and Blun?

III.Parina, a partner in the 3P Partnership, has a 30% participation in partnership profits and losses. Parina's capital account had a net decrease of 120,000 during the calendar year 2019. During 2019, Parina withdrew 260,000 (charged against her capital account) and contributed cash of 50,000 to the partnership.

Requirement:

1.What was the profit of the 3P Partnership?

IV.The PGC partnership provided for the following distribution of profits and losses:

First, Pillie is to receive 10% of the net profit up to 500,000 and 15% on the amount in excess thereof;

Second, Grace and Carol each are to receive 5% of the remaining profit in excess of 1,000,000 after Millie's share as per above item; and

The balance is to be divided among the partners equally.

For the year just ended, the partnership realized a net profit of 1,750,000 before distribution to partners.

Requirement:

1.How much is the share of each of the partners in the partnership profit?

V.Pina, Kindy, and Blive are partners with average capital balances in 2020 of 240,000, 120,000 and 80,000, respectively. Partners agreed to receive 10% interest on their average capital balances. After deducting salaries of 60,000 to Pina and 40,000 to Kindy, the residual profit or loss is divided among the partners equally. In 2020, the partnershio sustained a 66,000 loss before interest and salaries to partners.

Requirement:

1.By what amount should the partner's capital account change?

VI.Lavarro and Haredes formed a partnership on January 2, 2020 and agreed to share income 90% and 10% respectively. Lavarro contributed capital of 50,000. Haredes contributed no capital but has specialized expertise and manages the firm full-time. There were no withdrawals during the year. The partnership agreement provides for the following:

a.Capital accounts are to be credited annually with interest at 5% of beginning capital.

b.Haredes is to receive a bonus of 20% of income calculated before deducting his bonus, his salary, and interest on both capital accounts.

c.Bonus, interest, and Haredes' salary are to be considered partnership expenses.

The partnership's 2020 income statement shows the following:

Revenues192,900

Expenses (including salary, interest and bonus 99,400

Profit93,500

Requirements:

1.What is the amount of bonus to Haredes?

2.How much does each of the partners receive from the partnership net profit?

3.Explain your answer in number 2 in two to three sentences using the concepts in accounting for partnership operation.

VII.Ramayo, Wandon, and Fidel, a partnership formed in January 1, 2020 had the following initial investments:

Ramayo - 100,000

Wandon - 150,000

Fidel - 225,000

The partnership agreement started that profits and losses are to be shared equally by the partners after consideration is made for the following:

Salaries allowed to partner: P60,000 for Ramayo; P48,000 for Wandon and P36,000 for Fidel.

Average partner's capital balances during the year shall be allowed 10%

Additional Informaion:

On June 30,2020, Ramayo invested an additional P60,000.

Fidel withdrew P70,000 from the partnership on September 30,2020.

Share on the remaining profit was 3,000 for each partner.

Requirements:

1.The interest on average capital balances of the partners totaled to?

2.The partnership net profit for 2020 before salaries, interest and partners' share on the remainder is?

3.Explain your answer in number 2 in two to three sentences using the concepts in accounting for partnership operation.

VIII.Pito and Pico share profits after the provision of annual salary allowances of P14,400 and P13,200, respectively in the ratio of 3:2. However, if partnership's net income is insufficient to provide for said allowances in full amount, the net income shall be divided equally between the partners. In 2020, the following errors were discovered: Depreciation for 2020 is understated by P2,100, and the inventory on December 31, 2020 is overstated by P11,400. The partnership net income 2020 was reported to be P19,500.

Requirements:

1.The capital accounts of the partners should be increased (decreased) by how much?

2.Explain your answer in number 1 in two to three sentences using the concepts in accounting for partnership operation.

IX.The partners of JR and JC, share profits 3:2. However, JR is to receive a yearly bonus of 20% of the net profits after deducting said bonus, in addition to his profit share. The partnership made a net income for the year of 24,000 before the bonus.

Requirements:

1.How much profit share will JR receive?

2.Explain your answer in number 1 in two to three sentences using the concepts in accounting for partnership operation.