WITH SOLUTION

1. JJ and KK are partners who share profits and losses in the ratio of 60%: 40%, respectively. JJ's salary is P60,000 and P30,000 for KK. The partners are also paid interest and KK, P12,000. The profit and loss allocation determined after deductions for the salary and interest payments. If KK's share in the residual income (income after deduction salaries and interest) was P60,000 in 2015, what was the total partnership income?

1. P192,000 c. P282,000
2. 345,000 d. 387,000

1. The partnership has the following accounting amounts:

1. Sales = P70,000
2. Cost of Goods Sold = P40,000
3. Operating expenses = P10,000
4. Salary allocation to partners = P13,000
5. Interest paid to banks = P2,000
6. Partners' withdrawals = P8,000

The partnership net income (loss) is:

1. P20,000 c. P5,000
2. 18,000 d. (3,000)

1. Lancelot is trying to decide whether to accept a salary of 40,000 or a salary of P25,000 plus a bonus of 10% of net income after salary and a bonus as a means of allocating profit among the partners. Salaries traceable to the other partners are estimated to be 100,000. What amount of income would be necessary so that Lancelot would consider the choices to be equal?

1. P165,000 c. 265,000
2. 290.000 d. 305,000

1. 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 salary of P30,000 and a bonus. Jo has the option of receiving a salary of P30,000 and a bonus or simply receiving a salary of P52,000. Both partners will receive the same vmount of bonus.

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

1. P240,000 c. P94,000
2. 300,000 d. 334,000

1. The partnership agreement of XX, YY and ZZ provides for the year-end allocation of net income in the following order:

• First, XX is to receive 10% of net income up to 200,000 and 20% over P200,000
• Second, YY and ZZ each are to receive 5% of the remaining income over P300,000.
• The balance of income is to be allocated equally among the three partners.

The partnership's 2011 net income was P500,000 before any allocations to partners. What amount should be allocated to XX?

1. P202,000 c. P206,000
2. 200,000 d. 220,000