Profit Distribution MULTIPLE CHOICE

1.) Partners San Migueland Lucifer receive a salary of P150,000 and P300,000, respectively, and share profit and losses in a 2:1 ratio, respectively. If the partnership suffered a PP150,000 loss in 2016, by how much would San Miguel's account decrease?

a.P400,000

b.P250,000

c.P200,000

d.P100,000

2.) Partners A and B receive an interest allowance of P100,000 and P150,000, respectively, and divide the remaining profits and losses in a 3:1 ratio. If the company sustained a loss of P110,000 during the year, what is the effect on B's capital?

a.P82,500 decrease

b.P120,000 decrease

c.P170,000 decrease

d.P105,000 decrease

3.) If partnership has profit of P44,000 and Partner A is to be allocated a bonus of 10% of profit after the bonus, Partner A's bonus would be

a.P4,400b. 3,600c. 4,000d. none of the above

4.) Dar and Ling share in the partnership's profit in the ratio of 2:1, respectively. Dar received P245,000 as his share. How much did Ling receive as his share?

a.367,000c. 122,500

b.245,000d. 122,000

5.) The Adam and Apple Partnership has a P450,000 net income during the year. Adams gets credit for salary of P120,000. How much of the profit is credited to Apple if they share remaining profits in the ratio of 40:60, respectively?

a.120,000c. 198,000

b.270,000d. 318,000

6.) Sig and Fred agreed to share the partnership's profit as follows:

To Sig: P15,000 per month; 5% bonus after salary and bonus

To Fred: The remaining Balance

What is the amount of Fred's share from the partnership's income of P411,000.

a.1,457,000c. 927,000

b.795,000d. 1,325,000

7.) In 2014, Pa, Ma and Tay are partners with average capital balances of P120,000, P60,000 and P40,000, respectively. The partners receive 10% interest on their average capital balances. After deducting salaries of P30,000 to Pa and P20,000 to Ma, the residual profit or loss is divided equally. During the year, the partnership sustained a loss of P33,000 before interest and salaries to the partners. BY what amount should Pa's capital account change?

a.42,000 increasec. 23,000 decrease

b.11,000 decreased. 7,000 decrease